Hong Kong Hang Seng Gains 1.1%; Property and Tech Stocks Rise

The Hong Kong Hang Seng Index opened higher and held ground, finishing up 1.1% as traders bought back into property and tech shares beaten down by weeks of weakness on concerns regarding Beijing's credit and regulatory outlooks. But the People's Bank of China this week reduced bank reserve requirements, sending a signal that monetary accommodation may resume.

The broad gauge Hang Seng rose 257.99 to 24,254.86, as gaining issues outnumbered losers 50 to 10. The Hang Seng TECH Index rose 2.2% on the day, while the Mainland Properties Index rose 3.3%.

Leading the upside were Alibaba Health Information Technology 241, up 6.4%, followed by CSPC Pharmaceutical 1093, up 6.1%, and then Country Garden Services 6098, up 4.5%.

On the downside were utility conglomerate Power Assets 6, off 0.7%, and then bank HSBC 5, off 0.4%.

On the mainland, the Shanghai Composite rose 1% to 3,673.04.

In economic news, China producer prices rose 12.9% in November from a year earlier, while consumer prices rose 2.3%, reported the National Bureau of Statistics. The People's Bank of China has an annual consumer price inflation target of about 3%.