HONG KONG: Hong Kong stocks opened the Year of the Goat higher Monday but quickly erased the gains and turned lower, with the Hang Seng Index HSI, -0.03% off 0.6% despite an advance for many of the region’s other major markets.
The Hang Seng China Enterprises Index, which tracks mainland Chinese companies listed in Hong Kong, declined 1.2%, with the Shanghai and Shenzhen bourses still closed for the Lunar New Year. Top-weighted Hang Seng component HSBC Holdings PLC 0005, +0.35% HBSC HSBA, +0.55% edged down 0.2% ahead of its annual results, due after Asia markets’ close on Monday, with investors watching closely to see how recent tax-evasion allegations against the bank’s Swiss unit might affect the company’s future performance.
Major mainland Chinese banks also retreated across the board, as China Merchants Bank Co. 3968, -1.34% CIHHF, -4.82% 600036, +0.41% lost 1.6%, Industrial & Commercial Bank of China Ltd. 1398, +0.35% IDCBF, +0.00% 601398, +1.58% fell 0.7%, both China Construction Bank Corp. 0939, +0.00% CICHF, -2.96% 601939, +0.36% and Bank of Communications Co. 3328, +0.15% BKFCF, -3.61% 601328, +0.33% dropped 0.6% each, and Bank of China Ltd. 3988, +0.00% BACHY, -0.14% 601988, +0.24% and Agricultural Bank of China Ltd. 1288, -0.78% ACGBF, +2.78% 601288, +0.61% traded 0.5% lower apiece. Mainland property developers also saw wide losses, with top underperformers including Poly Property Group Co. 0119, -0.83% PHKIY, +0.00% (down 1.4%), Vanke Property Overseas Ltd. 1036, -1.00% (off 1%), and index component China Overseas Land & Investment Ltd. 0688, +0.00% CAOVF, -0.33% (lower by 0.6%). Among other market movers, Italian fashsion firm Prada SpA 1913, +4.23% PRDSY, -0.31% rose 0.4%, shrugging off a slight 1% drop of its sales in 2014 compared with the previous year. Asian life insurer AIA Group 1299, +0.34% AAIGF, +0.61% inched up 0.1%, with the market awaiting its annual results on Thursday. Chinese plywood manufacturer Steed Oriental Holdings Co. 8277, +0.00% surged more than fivefold on the first day of trading. Mainland Chinese stocks markets were due to reopen on Wednesday.
