Hong Kong stocks post weekly gains of over 2% on consumer strength

14 Aug 2020 / 16:54 H.

    * HK->Shanghai Connect daily quota used 8.9%, Shanghai->HK daily quota used 2.6%

    * HSI -0.2%, HSCE +0.2%, CSI300 +1.5%

    * FTSE China A50 +1.4%

    Aug 14 (Reuters) - Hong Kong stocks were little changed on Friday, but posted weekly gains of more than 2% thanks to a rally in consumer players, as investors looked for more stimulus measures to counter the economic damage done by the COVID-19 pandemic.

    ** The Hang Seng index fell 0.2% to 25,183.01, while the China Enterprises Index gained 0.2% to 10,266.46 points.

    ** For the week, the Hang Seng index gained 2.7%, while the China Enterprises Index was up 2%.

    ** Leading the rally, the Hang Seng consumer discretionary index closed 0.3% higher at a near six-month high, having gained nearly 5% this week.

    ** Consumer bellwether Haidilao International surged 17.6% for the week, its biggest gain since its 2018 Hong Kong listing.

    ** China's retail sales slipped in July, dashing expectations for a modest rise, as consumers in the world's second-largest economy failed to shake off wariness about the coronavirus, while the factory sector's recovery struggled to pick up pace.

    ** That spurred hopes that Beijing would continue to roll out measures to help boost consumption.

    ** "Despite narrowing declines in investment, consumption remained weak, highlighting the lasting economic shock from the coronavirus pandemic," said Zhang Yi, chief economist at Zhonghai Shengrong Capital Management.

    ** For the past week, tech stocks were under pressure due to rising Sino-U.S. tensions, with the newly launched Hang Seng tech index tumbling 4.7%.

    ** Tech giant Tencent slipped 0.7% on Friday, having dropped 8.8% after U.S. President Donald Trump ordered a ban on WeChat and TikTok in the country.

    ** Investors are awaiting a meeting between top U.S. and Chinese trade officials on Saturday to review the first six months of their Phase 1 trade deal. (Reporting by the Shanghai Newsroom; Editing by Amy Caren Daniel)

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