HK stocks fall sharply on retreating China shares

Hong Kong stocks fell sharply on Thursday and shed its huge gains on Wednesday amid the absence of official news on the economic stimulus package by authorities in the Chinese mainland.

The benchmark Hang Seng Index fell 169.01 points, or 0.81 percent, to open at the day's highest 20,762.25 and further widened its losses afterwards before plunging 539.2 points, or 2. 58 percent, to close at 20,392.06, just off the day's lowest 20, 350.48.

Turnover fell to 55.74 billion HK dollars from Wednesday's 62.33 billion HK dollars .

Among 43 components of the Hang Seng Index, declining shares outnumbered advancing issues 39 to 3, with China Overseas unchanged at 12.26 HK dollars.

Market heavyweight HSBC, which accounts for the largest weighting of the Hang Seng Index, lost 2.56 percent to 1178 HK dollars, dragging the index by 86.49 points alone.

China Mobile, the largest stock measured by market capitalization, weakened 3.7 percent to 91 HK dollars as its new subscribers fell 5.9 percent from June to 7.1 million in July, the second lowest growth this year.

Cheung Kong, one of Hong Kong largest house developers controlled by tycoon Li Ka-shing, dropped 2.79 percent to 101.1 HK dollars after its half-year profits went down 35 percent to 12.02 billion HK dollars and beat market expectation. Hutchison, another conglomerate controlled by Li Ka-shing, dipped 1.33 percent to 70.55 HK dollars after it announced a better-than-expectation profits of 10.69 billion HK dollars, down 62.8 percent due to lower exceptional gains to a year ago.

Hong Kong Exchanges and Clearing Limited, the market's sole operator, dropped 2.61 percent to 96.9 HK dollars.

Local property companies in Hong Kong all shed their gains on Wednesday. SHK Property, the largest house developer in Hong Kong, shed 3.92 percent to 100.6 HK dollars. New World Development fell 4.48 percent to 11.1 HK dollars. Sino Land lost 4.5 percent to 12.32 HK dollars. Henderson Land slumped 4.15 percent to 43.9 HK dollars. Hang Lung Property went down 3.21 percent to 22.6 HK dollars.

China Enterprise Index, or H-shares composed of companies registered in the Chinese mainland, retreated 262.66 points, or 2.35 percent, to 10,916.5 as stock markets in the Chinese mainland weakened more than 3 percent amid the absence of official news on the economic stimulus package by authorities in the Chinese mainland.

Energy companies were mixed as oil prices rose above 116 U.S. dollars a barrel in Asia due to falling gasoline supplies in the United States. PetroChina, or the country's largest oil producer, fell 2.53 percent to 9.64 HK dollars. Sinopec, Asia's largest oil refiner, went down 3.68 percent to 7.59 HK dollars. CNOOC, China's largest offshore oil producer, outperformed the entire market by adding 0.56 percent to 10.7 HK dollars.

China's property companies listed in Hong Kong were lower. Country Garden dipped 0.81 percent to 3.67 HK dollars. R&F Properties retreated 1.68 percent to 12.9 HK dollars. KWG Property lost 2.8 percent to 3.47 HK dollars. Greentown China dipped 0.18 percent to 5.59 HK dollars.

China's banks and insurance companies listed in Hong Kong were all weaker. ICBC, China's largest lender, lost 2.1 percent to 5.12HK dollars. Bank of China, the country's second largest bank, went down 2.13 percent to 3.21 HK dollars. China Construction Bank fell2.29 percent to 5.97 HK dollars. Bank of Communications shed 2.56 percent to 8.75 HK dollars. China Merchants Bank weakened 0.8 percent to 24.95 HK dollars.

China Life, the country's largest insurer, also lost 2.53 percent to 27 HK dollars. Ping An, the second largest insurance company, moved down 2.47 percent to 51.4 HK dollars.

Source: Xinhua