Hong Kong Stocks closed flat ahead of inflation data globally

Hong Kong share market finished session marginally lower on Tuesday, 28 May 2024, as traders were wary ahead of key inflation data from major economies this week that could provide clues on the path for global rates over the short term.

City market rose in early trade as the Shanghai announced cuts to the down-payment ratio, mortgage rates and offered subsidies to homebuyers and allowed multi-child families to buy one more home, as part of measures to boost the property market. But, investors digested the implications of the first property relaxation steps announced by a top-tier city, with much of the expectations already reflected in the prices. Investors were also awaiting the May data for manufacturing PMI, a leading economic indicator due later in the week.

At closing bell, the benchmark Hang Seng Index edged down 6.19 points, or 0.03%, to 18,821.16. The Hang Seng China Enterprises Index dropped 2 points, or 0.03%, to 6,686.13.

Shares of property developers declined due to profit taking following strong recent rally. China Overseas Land and Development slumped 2.4% to HK$35.48 after jumping almost 40% over the past two months. Longfor Group Holdings fell 1.8% to HK$13.38, after rising 20% over the past two months.

SMIC shed 1.2% to HK$16.28, surrendering some of the 7.4% gain posted the previous day after Beijing unveiled a US$47.5 billion investment plan towards achieving self-sufficiency in its semiconductor industry.

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