HONG KONG: Hong Kong stocks have ended marginally lower and Shanghai slumped 2.56 per cent following a fall on US stocks and a quiet reading from a gauge of Chinese manufacturing activity.
Hong Kong’s benchmark Hang Seng Index dipped 22.31 points to 24,484.74 on Monday on turnover of $HK87.17 billion ($A14.52 billion). However, initial big losses were pared thanks to a late rally.
The week got off to a negative start after Wall Street suffered another heavy loss Friday in reaction to data showing the world’s biggest economy grew at an annual rate of 2.6 per cent in the fourth quarter, well below the 5.0 per cent in the previous three months.
Also, prices in the eurozone fell by a record 0.6 per cent in January, fanning concerns the currency bloc is facing years of deflation.
On Monday British bank HSBC said its final Purchasing Managers’ Index (PMI) for China came in at 49.7 in January from 49.6 in December, but still below the 50-point mark that separates growth from contraction.
On Sunday it was announced that China’s official PMI came in at 49.8 last month, its first contraction in more than two years.
China Minsheng Bank ended 3.07 per cent lower at $HK9.16 after reports its chief is under investigation in the mainland for corruption.
HSBC eased 1.66 per cent to $HK71.25, China Life Insurance sank 2.29 per cent to $HK29.90 and Sinopec lost 0.98 per cent to end at $HK6.07.
However, internet firm Tencent jumped 2.88 per cent to HK$135.80, Henderson Land added 1.99 per cent to $HK56.50 and Cheung Kong was up 0.74 per cent at $HK149.60.
The benchmark Shanghai Composite Index tumbled 2.56 per cent, or 82.06 points, to 3,128.30 on turnover of 266.8 billion yuan ($A55.13 billion).
The Shenzhen Composite Index, which tracks stocks on China’s second exchange, fell 0.63 per cent, or 9.50 points, to 1,502.89 on turnover of 189.5 billion yuan.
“People will likely be more cautious after the (PMI) data,” said Qian Qimin, Shanghai-based analyst with brokerage Shenwan Hongyuan Group, adding that new share issues had spurred worries of tighter liquidity.
China’s market regulator has approved another 24 initial public offerings.
Financial shares fell in Shanghai.Minsheng Bank lost 3.17 per cent to 9.17 yuan.
Also in Shanghai, China Life Insurance tumbled 6.65 per cent to 33.68 yuan, Bank of China fell 6.14 per cent to 4.13 yuan and Citic Securities lost 3.37 per cent to 26.92 yuan.
