HONG KONG: Hong Kong stocks Tuesday dropped 1.13 per cent as Beijing released another set of weak economic data and mainlanders turned away from investing in the city via the newly launched share trade link-up with Shanghai.
The Hang Seng Index shed 267.91 points to 23,529.17 on turnover of $HK74.60 billion ($A10.42 billion). In mainland China, the benchmark Shanghai Composite Index fell 0.71 per cent, or 17.64 points, to 2,456.37 on turnover of 174.7 billion yuan ($A30.84 billion).
The Shenzhen Composite Index, which tracks stocks on China’s second exchange, rose 0.18 per cent, or 2.36 points, to 1,338.09 on turnover of 140.4 billion yuan. Chinese stocks dropped, with the benchmark index declining for a fourth day, as enthusiasm toward an exchange link with Hong Kong waned and falling home prices added to concerns that an economic slowdown will deepen.
Citic Securities Ltd. slid 2.7 percent in Shanghai. Hong Kong Exchanges & Clearing Ltd. tumbled 2.4 percent, extending yesterday’s 4.5 percent drop, as mainland investors used less than 8 percent of their 10.5 billion yuan ($1.7 billion) quota to buy Hong Kong stocks today. Poly Real Estate Group Co. (600048) and China State Construction Engineering Corp. slumped at least 2.7 percent. New-home prices decreased in all but one city monitored by the government last month as developers offered discounts to cut inventories.
The Shanghai Composite Index (SHCOMP) fell 0.7 percent to 2,456.37 at the close, while the Hang Seng China Enterprises Index slid 1.2 percent. Both indexes declined yesterday after initially rallying as the link between the two cities debuted. International investors bought 4.8 billion yuan of Shanghai shares today, out of the maximum daily amount of 13 billion yuan, after using all the quota yesterday.
“The stock link has already been priced in,” said Wei Wei, an analyst at West China Securities Co. in Shanghai. “The weakness in the house market will be drawn out because prices are still at a high level. The drag on the economy could also be protracted.” The CSI 300 Index dropped 1 percent, as gauges of energy and financial companies declined most. The Hang Seng Index retreated 1.1 percent.
Meanwhile, Chinese stocks also slipped with the benchmark index falling for a fourth day, as enthusiasm toward an exchange link with Hong Kong waned and falling home prices added to concerns that an economic slowdown will deepen.
Citic Securities Ltd. slid 2.7 percent in Shanghai. Hong Kong Exchanges & Clearing Ltd. tumbled 2.4 percent, extending yesterday’s 4.5 percent drop, as mainland investors used less than 8 percent of their 10.5 billion yuan ($1.7 billion) quota to buy Hong Kong stocks today. Poly Real Estate Group Co. (600048) and China State Construction Engineering Corp. slumped at least 2.7 percent. New-home prices decreased in all but one city monitored by the government last month as developers offered discounts to cut inventories.
The Shanghai Composite Index (SHCOMP) fell 0.7 percent to 2,456.37 at the close, while the Hang Seng China Enterprises Index slid 1.2 percent. Both indexes declined yesterday after initially rallying as the link between the two cities debuted. International investors bought 4.8 billion yuan of Shanghai shares today, out of the maximum daily amount of 13 billion yuan, after using all the quota yesterday.
“The stock link has already been priced in,” said Wei Wei, an analyst at West China Securities Co. in Shanghai. “The weakness in the house market will be drawn out because prices are still at a high level. The drag on the economy could also be protracted.” The CSI 300 Index dropped 1 percent, as gauges of energy and financial companies declined most. The Hang Seng Index retreated 1.1 percent.
