Hong Kong opened lower following weakness in European and U.S. markets Friday and sank almost 200 points at one time, but a rebound in Mainland stocks helped erase some losses.
China stocks and Hong Kong blue chips opened higher and added further gains as overseas money chased heavyweight stocks, including some that will announce results in the next three weeks.
China stocks in Hng Kong fell sharply after the European Central Bank failed to expand its sovereign debt purchase plan, despite encouraging news of large drop in Chinese inflation.
A rebound in U.S. markets helped China and Hong Kong bounce back from huge losses Thursday. Chinese banks rebounded after a surge in lending lifted loan values for the month.
A big drop on Wall Street added impetus to Hong Kong's pullback from recent sharp gains. Better prospects for an easing of China's tight credit policies could benefit investors.