HONG KONG: Hong Kong and Shanghai stocks pulled back Thursday, giving back gains from the previous session and tracking weakness in the U.S. markets overnight. The Hang Seng Index HSI, -0.33% was down 0.7% about an hour into trade, with the Shanghai Composite SHCOMP, +0.43% down 0.4%. Weak spots on the Hong Kong market included tech shares (Lenovo Group Ltd. 0992, -2.47% LNVGF, +1.38% down 2.7%, Tencent Holdings Ltd. 0700, -0.55% TCEHY, +2.78% down 1%) and airlines (Air China Ltd. 0753, +0.42% AIRYY, +1.49% 601111, +3.64% down 2.1%, China Southern Airlines Co. 1055, -0.30% ZNH, +3.28% 600029, -0.25% down 3.9%). Gains for mainland Chinese banks helped offset the losses, after the State Council proposed getting rid of binding loan-to-deposit ratio requirements. Agricultural Bank of China Ltd. 1288, +0.71% ACGBF, -2.59% 601288, +0.80% rose 0.7%, Bank of Communications Co. 3328, +1.98% BKFCF, +0.52% 601328, +1.24% rallied 2.2%, and Industrial & Commercial Bank of China Ltd. 1398, +0.89% IDCBF, +4.17% 601398, +1.15% added 0.9%. On the other hand, Bank of China Ltd. 3988, -5.15% BACHY, +0.60% 601988, +0.83% fell 4.8% as its share traded ex-dividend.
