Hong Kong shares closed flat on Tuesday, as bargain hunting in the morning session was offset by an unexpected move by China's central bank to raise the amount banks must keep in reserve.
The Hang Seng China Enterprises Index rose 55.43 points, or 0.45 percent, to close at 12,488.27.
Three sub-indices gained ground, with the Utilities sub-index rising 0.42 percent, followed by the Properties 0.34 percent, and the Finance 0.22 percent, while the Commerce and Industry fell 0.55 percent.
The slight decline came after the People's Bank of China said on Tuesday afternoon that it was raising banks' reserve requirement ratio by half a percentage point, in a move to address inflation concerns by locking up liquidity in the banking system.
The announcement of the increase, which takes effect on June 20, comes after data issued on Tuesday showed the country's consumer price index rose 5.5 percent in May from a year earlier, up from April's 5.3 percent rise and well above the official full-year target of around 4 percent.
Chinese lender Bank of Communications fell 0.7 percent to 7.41 HK dollars and Bank of China retreated 0.3 percent to 3.94 HK dollars.
Shares of Nine Dragons were down 17.4 percent at 5.65 HK dollars before trading was halted. The drop came after ratings firm Standard & Poor's said it had withdrawn its 'BB' long-term corporate credit rating because it had 'insufficient access' to the company's management.
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Source:Xinhua
Weekly review
The Hang Seng China Enterprises Index rose 55.43 points, or 0.45 percent, to close at 12,488.27.
Three sub-indices gained ground, with the Utilities sub-index rising 0.42 percent, followed by the Properties 0.34 percent, and the Finance 0.22 percent, while the Commerce and Industry fell 0.55 percent.
The slight decline came after the People's Bank of China said on Tuesday afternoon that it was raising banks' reserve requirement ratio by half a percentage point, in a move to address inflation concerns by locking up liquidity in the banking system.
The announcement of the increase, which takes effect on June 20, comes after data issued on Tuesday showed the country's consumer price index rose 5.5 percent in May from a year earlier, up from April's 5.3 percent rise and well above the official full-year target of around 4 percent.
Chinese lender Bank of Communications fell 0.7 percent to 7.41 HK dollars and Bank of China retreated 0.3 percent to 3.94 HK dollars.
Shares of Nine Dragons were down 17.4 percent at 5.65 HK dollars before trading was halted. The drop came after ratings firm Standard & Poor's said it had withdrawn its 'BB' long-term corporate credit rating because it had 'insufficient access' to the company's management.
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Source:Xinhua
Weekly review
