Hong Kong shares ended slightly lower Friday in a shortened trading session ahead of the Christmas holiday, led by Chinese lenders and car makers due to concerns about further monetary tightening by Beijing.
The blue-chip Hang Seng Index fell 69.17 points, or 0.3%, to 22,833.80, after trading between 22,776.62 and 22,948.25. The benchmark index rose 0.5% this week.
Market volume totaled HK$23.63 billion, up from HK$23.02 billion at Thursday's midday break. Turnover for Thursday's full session totaled HK$43.98 billion.
Analysts said they expect trade to be muted in the three and a half trading sessions left this year, with the benchmark index facing resistance at 23,300, due to concerns about further tightening in China to curb rising inflation.
Hong Kong's stock market will be closed Monday for the Christmas holiday and will trade for just half a day on Dec. 31.
Ben Kwong, associate director of KGI Asia, said many investors took to the sidelines before the three-day Christmas holiday, and he expects the HSI trade in a 22,500-23,300 next week.
Chinese lenders extended losses Friday because of lingering concerns about a possible increase in interest rates in the near term. China Construction Bank fell 1.2% to HK$6.78, following a 0.7% decline Thursday, and Bank of Communications ended 0.9% lower at HK$7.74, extending its 1.0% fall the previous day.
Chinese auto makers ended lower after Beijing's municipal government on Thursday unveiled drastic new measures to curtail the number of cars sold in the city next year, in a bid to ease traffic chaos in the capital.
Dongfeng Motor plunged 7.9% to HK$13.08, and Brilliance China fell 7.5% to HK$5.41. Geely Auto ended 6.0% lower at HK$3.43.
Beijing will limit the issuance of new car and micro-van license plates in the city to 240,000 in 2011, about one-third of this year's figure, and only registered Beijing residents will be able to obtain one.
'Brilliance China's business will be the most affected by the new rules as the car maker sells such a large percentage of its cars in Beijing,' said Patrick Yiu, managing director of CASH Asset Management.
Blue-chip developer Cheung Kong fell 0.7% to HK$120.00 due to profit-taking after rising 3.9% in the previous two sessions following reports about its plans to list a yuan-denominated real estate trust in Hong Kong as soon as the second quarter of 2011.
Bucking the downtrend, exporter Li & Fung rose 2.8% to HK$45.50, as analysts expect the firm to benefit from the slow-but-steady economic recovery in the U.S.
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