Hong Kong blue chips break 21,000
8 May 2007
Hong Kong's Hang Seng Index briefly broke the 21,000 mark Monday, hitting 21,070. The hike was short-lived, however, as investors took their cash back in late afternoon trading in preparation for the reopening of the Shanghai and Shenzhen markets on Tuesday, the South China Morning Post reported. The HSI closed at a new high of 20,896 Monday but was down to 20,821 after early trading this morning. "It's a normal pullback after testing a new record high of above 21,000, which is prone to draw profit-taking," said Patrick Yiu Ho-yin, an associate director at Cash Asset Management. Hong Kong investors have been flirting with the 21,000 ceiling for months now but the market has been generally more conservative than Mainland markets and valuations have not seen the incredible surges experienced in Shanghai and Shenzhen.