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HK shares drop 2.7 pct; down 1 pct on week

Published 08/07/2009, 04:08 AM
Updated 08/07/2009, 04:12 AM
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HONG KONG, Aug 7 (Reuters) - Hong Kong shares took a cue from the sharp slide on the Shanghai market to fall 2.5 percent on Friday on worries the mainland authorities will take measures to rein in the liquidity that has fuelled the stellar rally on the mainland bourses.

But heavyweight China Mobile rose for a second day, limiting losses on the main index, gaining 1.7 percent as speculation mounted over a Shanghai-listing for the company.

The benchmark Hang Seng Index closed down 523.87 points at 20,375.37. The gauge fell 1 percent on the week, snapping a three-week winning streak.

The China Enterprises Index, which represents top locally listed mainland Chinese stocks, was 3.7 percent lower at 11,612.18. (Reporting by Parvathy Ullatil; Editing by Chris Lewis)

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