Hong Kong shares close at third-straight record high

HONG KONG, July 5 (Xinhua) -- Strong liquidity propelled Hong Kong's benchmark index to its third-straight record close Thursday, after the market shrugged off concerns about further tightening by the Chinese government, which dragged down stocks on the Chinese mainland.
The Hang Seng Index rose 34.44 points, or 0.2 percent, to 22, 252.99 after trading between 22,126.97 and 22,328.61 during the session.
Turnover reached 85.13 billion Hong Kong dollars (10.90 billion U.S. dollars), up from 83.43 billion Hong Kong dollars (10.69 billion U.S. dollars) Wednesday.
Analysts said the index is likely to consolidate in the near term as the index has gained 1,670 points since May 31. They added potential tightening measures on the Chinese mainland remain an overhang on the market.
A sharp fall in mainland's stock markets sent the Hong Kong index lower in the early afternoon, but it regained ground to end at a new record high.
The benchmark Shanghai Composite Index, which tracks both A and B shares, fell 5.3 percent to 3615.87, following a 2.1 percent fall Wednesday, on expectations for more tightening measures.
Blue chips were mixed. Heavyweight HSBC rose 0.14 percent to 143.20 Hong Kong dollars while mobile giant China Mobile fell 0.1 percent to 86.50 Hong Kong dollars on profit-taking.
Chinese banks made further gains on prospects of further strength in the yuan, traders said.
China Construction Bank ended up 2.9 percent at 5.77 Hong Kong dollars, following its gain of 2.6 percent Wednesday.
Bank of China rose 2 percent to 3.98 Hong Kong dollars and ICBC increased 1 percent to 4.53 Hong Kong dollars.
Chinese developer C C Land rose 9 percent to 7.56 Hong Kong dollars after Citigroup initiated its coverage with a buy rating and a price target of 8.68 Hong Kong dollars.
"C C Land is the only property play that offers pure exposure to western China - a high-growth region," said Citigroup.
HK and China Gas gained 2 percent to 16.80 Hong Kong dollars after the exchange disclosed Chairman Lee Shau-kee had increased his stake to 40.14 percent from 40.07 percent. Lee bought 4.418 million shares from June 27-29 at 16.475-16.511 Hong Kong dollars each.
xinhuanet