BEIJING: Chinese stocks sat weaker in early Tuesday trading, with Hong Kong’s Hang Seng Index HSI, -0.34% down 0.2% about 15 minutes into the session and the Shanghai Composite Index SHCOMP, -1.34% lower by 0.8%, though both benchmarks were off their opening lows. In Hong Kong, financials were among the sore spots, with Dow Jones Newswires citing Chinese regulators’ tightening of margin regulations for over-the-counter shares as continuing to weigh on the market, as it did Monday. Shares of Bank of Communications Co. 3328, +0.00% BKFCF, +0.52% 601328, +2.86% lost 0.9%, while China Merchants Bank Co. 3968, -1.45% CIHHF, -1.38% 600036, +0.31% was down 0.6%, and Haitong International Securities Group Co. 0665, -2.03% TFSGF dropped 2.7%. Elsewhere on the Hong Kong bourse, Lenovo Group Ltd. 0992, -2.15% LNVGF, -2.77% fell 1.4% as its top shareholder Legend Holdings Corp. moved toward its initial public offering, while China Coal Energy Co. Ltd. 1898, -0.60% CCOZY, -3.19% dropped 1.4% after reporting a 25% decrease in its January-May coal output. Property major Agile Property Holdings Ltd. 3383, -6.43% AGPYY, -6.97% lost 5.8% as the shares traded ex-dividend, and Cathay Pacific Airways Ltd. 0293, -0.74% CPCAY, +0.59% retreated by 2%, failing to get a boost from Daiwa Securities’ upgrade of the name to outperform from hold. Fosun International Ltd. 0656, -2.16% FOSUF, +2.00% gave up 2.4% as news broke about its joint venture with British travel company Thomas Cook Group PLC TCG, +0.58% Over in Shanghai, resource stocks were among the major decliners (Jiangxi Copper Co. 0358, -2.25% JIXAY, -0.45% 600362, -2.92% down 2.4%, Baoshan Iron & Steel Co. 600019, -3.71% down 2.8%, Aluminum Corp. of China Ltd. (Chalco) 2600, -3.68% ACH, -1.43% 601600, -4.48% down 2.2%), while among industrials, Sany Heavy Industry Co. 0631, -2.54% 600031, -3.69% fell 2.8% and Dongfeng Motor Group Co. 0489, -1.77% DNFGF, -4.12% 600006, -4.50% traded 3.2% lower. CNBC cited the large number of IPOs set to enter the Shanghai market as a factor behind the weakness Tuesday.
