July 30, 2020 / 9:01 AM / 5 days ago

Hong Kong shares give up gains as financials, resources stocks weigh

July 30 (Reuters) - Hong Kong shares gave up gains to close lower on Thursday, as losses in financials and resources stocks outweighed gains in healthcare plays.

** The Hang Seng index fell 0.7%, to 24,710.59 points, while the China Enterprises Index, which tracks Hong Kong-listed Chinese firms, lost 0.9%, to 10,097.08 points.

** Hang Seng rose more than 1% in the morning session, as the U.S. Federal Reserve’s pledge to limit economic damage from the pandemic lifted sentiment across global equity markets.

** But the market erased gains in afternoon trading, reflecting fragile investor sentiment amid rising Sino-U.S. tensions and surging coronavirus cases.

** The financials and material sectors were among the biggest losers.

** Healthcare stocks gained on reports that Chinese drug company Sinopharm and Parana state agreed to launch the fourth major COVID-19 vaccine trial in Brazil and will seek regulatory approval in the next two weeks.

** Hong Kong’s stock market is dominated by Chinese companies, which benefit from the country’s economic recovery, but the market is also vulnerable to global money flows.

** Emerging market equities are expected to outperform developed market equities and fixed income, said David Chao, global market strategist, Asia Pacific at Invesco.

** Hong Kong’s newly-launched Hang Seng Tech index, which tracks 30 major tech stocks including Alibaba Group and Tencent, rose 0.2% on Thursday.

** Goldman Sachs estimates that the Hang Seng Tech index will attract $2 billion of passive buying over the next 12 months, and $14 billion over the next five years. (Reporting by the Shanghai Newsroom; Editing by Subhranshu Sahu)

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