November 2, 2017 / 8:29 AM / 2 years ago

Hong Kong shares fall as investors await Fed nomination, eye possible H-share change

SHANGHAI, Nov 2 (Reuters) - Hong Kong stocks slipped on Thursday, echoing nervousness in global markets as investors waited for key policy events in the United States and what could be the Bank of England’s first hike in more than 10 years.

Investors also weigh the impact of a possible policy change that might change the share structure of “H-shares”, or mainland companies listed in Hong Kong.

Both the Hang Seng index and the China Enterprises Index fell 0.3 percent, to 28,518.64 and 11,598.36 points, respectively.

Attention is fixed on who will become Fed chair when Janet Yellen’s terms expires in February.

The White House plans to nominate current Fed Governor Jerome Powell, a source familiar with the matter said on Wednesday.

Investors also study the impact of a potential policy change regarding H-shares. Chinese media Caixin reported that China’s State Council plans to revive a policy that will allow mainland firms to freely convert nonlisted “domestic shares” into “H-shares”. The policy could potentially jack up H-share supplies.

Sector performance was mixed. Financial shares dropped 0.7 percent, but energy stocks jumped 2.1 percent. (Reporting by the Shanghai Newsroom; Editing by Richard Borsuk)

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