Hong Kong shares closed at their lowest in two weeks on Tuesday, with the tumble led by listed Chinese enterprises, as investors took their cue from a sell-off in mainland markets.
The Hang Seng index fell 1.3 per cent to 27,755.54, while the China Enterprises Index lost 2.6 per cent to 14,077.62 points.
Chinese markets suffered their biggest loss in nearly four months on Tuesday, amid a fresh wave of share listings and media reports that some brokerages had tightened the rules for margin financing.
But Hong Kong stocks may end the month higher although the ride will be bumpy, said Alex Kwok, analyst at China Investment Securities (HK).
“There’s a big probability that the Hong Kong market will swing upwards, as money from the mainland and overseas keep flowing into Hong Kong,’’ he wrote.
China is expected to announce the timetable of the Shenzhen-Hong Kong Stock Connect scheme, which could also stoke the market, Kwok added.
Among the most actively traded stocks on Hong Kong’s main board were China National Culture Group, down 19.0 per cent at HK$0.19, China Star Entertainment, up 2.4 per cent at HK$0.13 and Sino-Tech International Holdings, up 16.1 per cent at HK$0.11.