H shares jump as Brexit risk falls
Hong Kong H shares bounced up Friday and reduced their loss for the week after odds makers lowered the chance the Great Britain would vote to exit, or “Brexit,” the European Union at its June 23 referendum
After the death of a British lawmaker led to a halt to all campaigning on the Brexit issues, the Hang Seng China Enterprises Index added 0.9%, to 8,486, trimming its weekly drop to 4%. The boarder Hang Seng Index gained 0.7% to 20,170. Banks and insurance companies led gains.
Mainland shares rose as well. The Shanghai Stock Exchange Composite Index climbed 0.4% to 2,885, narrowing this week’s loss to 1.4 percent. And the Shenzhen Stock Exchange Composite Index rose 0.8% to 1,901 as the yuan headed for the biggest weekly decline in a month.
Brexit poses unclear economic prospects for Hong Kong, the South China Morning Post reported this month, citing Financial Secretary John Tsang. Chinese President Xi Jinping urged his British counterpart David Cameron to keep Britain in a “united” EU during his October visit to the country, according to British media reports.
In March, Li Ka-shing, one of the biggest foreign investors in the United Kingdom, said if Britain exits the EU he’d scale back investments
The yuan rose less than 0.1% on Friday. For the week, it fell 0.4%, the most since May 13, to 6.5889 a dollar in Shanghai, China Foreign Exchange Trade System prices show.