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Hong Kong: Stocks rise as investors await Fed's rate decision
[HONG KONG] Hong Kong shares rose on Monday, but the gains were limited by a sharp correction in mainland stocks, as investors await this week's rate decision by the US Federal Reserve.
The Hang Seng index rose 0.3 per cent, to 21,561.90, while the China Enterprises Index gained 0.1 per cent, to 9,728.72 points.
The market was encouraged by Beijing's plan unveiled over the weekend to restructure state-owned enterprises (SOEs), but optimism was curbed by China's weak August economic data, as well as a slide in mainland shares, said Alex Kwok, analyst at China Investment Securities in Hong Kong.
"Many investors remain cautious as they focus on Fed's rate decision to be made later this week," he said, adding that a rate hike could trigger one or two days of fluctuations although it would remove one of the biggest uncertainties facing investors.
Most sectors fell but financial and property shares rose.
Shares of Belle International Holdings Ltd fell 7 per cent, posting their biggest daily per centage decline since March, 2014, after the company said its footwear business declined 7.7 per cent during the fiscal second quarter with a decrease of 162 retail outlets.