Hong Kong stocks closed higher on Friday, posting their best week since June after the withdrawal of a controversial extradition bill and on hopes of a de-escalation in the protracted Sino-US trade dispute. The Hang Seng index rose 0.7% to 26,690.76, while the China Enterprises Index gained 0.5% to 10,430.67. For the week, HSI gained 3.8% while HSCE added 3.5%, their biggest weekly gains since late June.

The top gainers among H-shares were China Huarong Asset Management Co Ltd up 4.1%, followed by Guangzhou Automobile Group Co Ltd rising 3.98% and Shenzhou International Group Holdings Ltd gaining 3.12%. The three biggest H-shares percentage decliners were China Gas Holdings Ltd, down 6.65%, CSPC Pharmaceutical Group Ltd, which fell 2.21% and China Resources Beer Holdings Co Ltd, down 1.37%.

Hong Kong leader Carrie Lam said on Friday measures announced this week to help restore order in the Chinese-ruled city are a first step, and disagreed with a credit downgrade by rating agency Fitch.

Copyright Reuters, 2019