HONG KONG: Hong Kong stocks declined in early trade on Thursday, following a feeble regional trend after US stocks sold off overnight on signs the Federal Reserve sustained likely to climb interest rates later this year.
Banks retreated broadly, as China Minsheng Banking Corp. 1988, -3.52% 600016, -2.82% CMAKY, -4.90% dropped 2.4%, China Merchants Bank Co. 3968, -2.94% CIHHF, -5.79% 600036, -1.58% shed 2.3%, Industrial & Commercial Bank of China Ltd. 1398, -2.27% IDCBF, -0.70% 601398, -2.77% lost 1.9%, and Bank of Communications Co. 3328, -2.42% BKFCF, +16.90% 601328, -1.56% fell 1.5%. London-based Standard Chartered PLC 2888, -4.15% STAN, -3.90% tumbled 3.6% amid further reports its chief executive was under pressure from shareholders, and Sino-British banking giant HSBC Holdings PLC 0005, -0.82% HBSC HSBA, +0.03% dropped 0.8%. Chinese brokerage firms suffered substantial losses after the securities regulator announced Wednesday night that it soon would launch a second round of its crackdown on margin trading practices.
Shenyin Wanguo HK Ltd. 0218, -3.08% slid 2.8%, Guotai Junan International Holdings Ltd. 1788, -3.12% fell 2.3%, and both China Galaxy Securities Co. 6881, -1.64% and Citic Securities Co. 6030, -2.55% CIIHF, -14.40% moved 2% lower.
A renewed slide in global crude prices dragged the energy shares lower, as Cnooc Ltd. 0883, -2.87% CEO, -2.99% headed down 2.5%, PetroChina Co. 0857, -2.67% 601857, -2.78% PTR, -2.89% gave up 2%, and China Petroleum & Chemical Corp., or Sinopec, 0386, -2.08% SNP, -1.27% pulled back 1.3%. Casino operator Sands China Ltd. 1928, -0.50% inched up 0.1%, shrugging off a 18% fall in quarterly profit. Most other rivals advanced, as MGM China Holdings Ltd. 2282, -0.51% MCHVF, +4.26% and Wynn Macau Ltd. 1128, +0.44% WYNMF, +3.58% both rose 0.8% apiece, and SJM Holdings Ltd. 0880, -0.17% SJMHF, -0.33% added 0.5%. Over on the mainland, the Shanghai Composite Index SHCOMP, -1.35% retreated 1%.
