Hong Kong's benchmark stock index had its best week in two months, as investors were buoyed by perceived progress in talks to resolve 16 months of the bruising trade war between the United States and China.
The Hang Seng Index rose 2 per cent this week to close at 27,651.14, its best weekly performance since September 13, led by the shares of property developers, banks and insurers. Shanghai's benchmark Composite Index rose 0.2 per cent to close the week at 2,964.18, while the Shenzhen Composite Index advanced 0.7 per cent to 1,648.68.
Geely Automobile Holdings rose 1.8 per cent to HK$15.54 after advancing by as much as 3.4 per cent on the Hong Kong exchange. China's largest privately owned carmaker, Geely said it plans to sell a US dollar-denominated perpetual bond to raise capital for expansion. Moody's Investors Services assigned a Baa3 senior unsecured rating to the plan, with a "stable" outlook.
"The proposed perpetual securities issuance will further boost Geely's liquidity buffer and support its ongoing investments in research and development, without significantly affecting its solid credit metrics and reported net cash position," Moody's vice-president Gerwin Ho said in a research note on the proposed issuance.
CK Life Sciences, the drugmaker under Hong Kong conglomerate CK Hutchison, fell 10 per cent to HK$1, reversing two days of jaw-dropping gains that saw the pharmaceutical company's valuation more than triple on news that its drug for early-stage skin cancer showed positive results from clinical trials.
Some investors sought to lock in their gains ahead of uncertainties over what could unfold over the weekend, sending key indexes to close lower for the day in Hong Kong and mainland China.
The Hang Seng ended Friday 0.7 per cent lower than the previous day's close, while the China Enterprises Index that tracks the performance of Chinese companies declined 0.5 per cent.
In Shanghai, the Composite Index fell 0.5 per cent while Shenzhen's benchmark dipped 0.2 per cent.
"We saw a correction today because the HSI rose to overbought level at 27,900 points yesterday, " said Kenny Wen, wealth management strategist at Everbright Sun Hung Kai. "While waiting for more news about the trade deal, some investors choose to lock in profits."
Still, companies took advantage of the buoyant sentiments, with six companies banging a ceremonial gong to market the trading debut of their shares on the Hong Kong stock exchange.
Three of the stocks jumped by at least 30 per cent from their initial public offered prices when trading began, while the remainder dropped below their IPO prices.
Aluminium producer United Company Rusal fell 3.9 per cent to HK$3.49 after reporting an 8.8 per cent decline in its nine-month revenue.
In China, winning sectors included stocks related to wireless headsets, blockchain-related firms, and chicken producers, according to gauges tracking them by data provider Xuangubao.
The Hang Seng Index opened lower on Friday, as news broke an hour before trading began that a student who took a fall at a car park on Monday had died from his injuries, raising concerns that this death could cause Hong Kong's unprecedented anti-government protests to further deteriorate. Shares of Link Reit, one of the biggest operators of suburban shopping centres and car parks in Hong Kong, reversed two days of gains with a decline of 1.1 per cent to HK$85.1, as the deceased had fallen at its Sheung Tak Estate car park.
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