Hong Kong stocks snapped a four-day losing streak on Friday, after the mainland's securities regulator suspended its newly implemented circuit-breaker mechanism on late Thursday. The benchmark Hang Seng Index rose 120.37 points, or 0.59 percent, to close at 20,453.71 points, after trading between 20, 324.62 and 20,596.42. Turnover totaled 85.57 billion HK dollars (about 11.04 billion U.S. dollars), down from 107.2 billion HK dollars the previous trading day.
The mainland's securities regulator implemented the circuit-breaker mechanism on Monday, hoping to offer a "cooling period" when there are sharp fluctuations on the market and therefore stamp out the wild swings.
However, the mechanism exacerbated stock sell-offs and shut down equity trading early twice in one week. The China Securities Regulatory Commission announced late on Thursday night that the mechanism would be halted from Friday, without saying how long the suspension will last.
The Hang Seng China Enterprises Index rose 1.05 percent, or 91. 92 points, to close at 8,845.89 points. Half of the four sub-indices gained ground. The Commerce and Industry rose 1.15 percent, and the Finance increased 0.47 percent. The Properties edged down 0.45 percent and the Utilties was down 0.17 percent.
Local financial shares were broadly higher. Banking giant HSBC, which accounts for the largest weighting of the Hang Seng Index, increased 0.17 percent to 57.4 HK dollars. Local bourse operator HKEX added 1.3 percent to 186.5 HK dollars.
Property developers posted lackluster performances. Sun Hung Kai, one of Hong Kong's largest property developer by market value, closed down 0.11 percent to 91.55 HK dollars. Henderson Land ended 0.87 percent lower at 45.55 HK dollars.
Mainland-based financial stocks also rose. China Construction Bank, the country's second-largest lender, gained 0.4 percent to close at 5.02 HK dollars. Bank of Communications, the fifth-largest, climbed 2.02 percent to 5.05 HK dollars. Oil majors shot up. Sinopec, the largest oil refiner, jumped 5. 56 percent to close at 4.37 HK dollars. CNOOC added 1.06 percent to end at 7.63 HK dollars. (1 U.S. dollar equals to 7.75 HK dollars).
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