An electronic billboard showing the Hang Seng Index is seen in Hong Kong Dec. 28, 2006. Hong Kong stocks rose to end above the 20,000-point threshold on Thursday as shares forged fresh records. Dec 28 - Hong Kong blue-chip stocks topped the 20,000-point threshold for the first time on Thursday, riding persistent optimism over Chinese stocks.
The Hang Seng Index rose to a record 20,001.17 before ending the morning at 19,961.15, up 1.19 percent.
"It's time for the market to take a break," said Alfred Chan, a chief dealer at Cheer Pearl Investment Ltd.
"A healthy correction is needed after the recent rally," he said, adding the index would find support at 19,500.
According to Reuters, Hong Kong-listed Chinese shares , which posted their biggest daily percentage gain in 5 years on Wednesday, rose to an all-time high of 10,455.45 before ending the morning at 10,420.48 for a gain of 1.6 percent.
Turnover stood at HK$30.04 billion (US$3.85 billion) at the mid-session, up 8.8 percent from Wednesday's HK$27.6 billion, Reuters said.
Hong Kong stocks rose in post-Christmas trade on Wednesday and Thursday, catching up with gains in China's domestic markets in past days following news that the country may unify its corporate tax system in 2007.
Shares of Bank of China gained 2 percent to HK$4.16, Bank of Communications was up 4.5 percent at HK$9.91, and China Construction Bank increased 0.4 percent to HK$5.08.
Investors had begun also to lock in profit -- putting pressure on Chinese financial stocks.
Industrial and Commercial Bank of China fell 0.8 percent to HK$4.94. The country's largest lender expects 2006 net profit to grow more than 26 percent, the Shanghai Securities News cited chairman Jiang Jianqing as saying.
Shares of China Life Insurance Co. fell 0.55 percent to HK$27.05. The country's biggest life insurer set the price range in its US$3.6 billion Shanghai IPO at 18.88 yuan per share, the top of an 18.16-18.88 yuan range set at the start of this week's initial public offer.
China Netcom Group Corp. (Hong Kong) Ltd. fell 13.8 percent to HK$21.95 after leaping more than 30 percent on Wednesday in a frenzy of speculation revolving around its possibly winning a licence to offer third-generation services.
