Hong Kong: Shares end lower, railway sector slumps

[HONG KONG] Hong Kong shares ended lower after a volatile session on Friday, pressured by profit taking and concerns over the status of a cross border stock trading scheme.

The Hang Seng Index unofficially closed down 0.4 per cent at 23,550.24 points, while the China Enterprises Index of the leading offshore Chinese listings in Hong Kong fell 0.3 per cent.

For the week, the two indexes dropped 1.9 per cent and 2 per cent, respectively.

Analysts said investors were taking profits after recent rallies and there was no buying impetus from the current reporting season as earnings from most blue chip companies were largely in line with expectations.

The market's top loser was Lenovo, which extended losses from Thursday after the company reported a 19 per cent jump in net income in the second fiscal quarter, but revenue fell short of analyst expectations.

The railway sector dropped after Mexico's president revoked a rail contract with China. China Railway Construction Corp Ltd and China Railway Group each plunged more than 5 per cent.

Elsewhere, investors awaited developments over the Shanghai-Hong Kong stock connector scheme, leading to wide swings in the shares of Hong Kong Exchange and Clearing.

REUTERS