HK shares slid as developers decline
Source: Bloomberg News |
April 12, 2011, Tuesday
|
Print Edition
Print Edition
HONG Kong's Hang Seng Index fell the most in two weeks as Chinese developers dropped, after Premier Wen Jiabao asked local governments to help control growth in housing prices.
China Resources Land Ltd, a state-controlled developer, dropped 3.7 percent. China's exports grew faster than expected, raising concern the government may strengthen its fight against inflation. Hong Kong developers slid after home prices fell. China Gas Holdings Ltd, an energy supplier to mainland homes and businesses, dropped 2.9 percent after Piper Jaffray Cos cut its rating to "neutral." Geely Automobile Holdings Ltd gained 2.3 percent after China's car sales rose.
The Hang Seng Index slid 0.4 percent to 24,303.07 at the close, the biggest drop since March 28, after rising as much as 0.3 percent. Twice as many stocks declined as rose on the 45- member Hang Seng Index. The Hang Seng China Enterprises Index of Chinese companies' H-shares rose 0.2 percent to 13,684.06.
"People are buying selectively," said Alex Wong, asset management director at Ample Capital Ltd in Hong Kong. "The sentiment remains bullish, but people are not too keen on certain sectors, like local property. People are a bit concerned about interest rates, and sales to residential projects are not picking up too strongly."
China Resources slumped 3.7 percent to HK$15.06 (US$1.94), while Guangzhou R&F Properties Co, the biggest real-estate company in the southern Chinese city, slid 2.8 percent to HK$11.32. Shimao Property Holdings Ltd declined 2.6 percent to HK$11.86.
The central government's aim to control the property market is "clear" and the determination is "firm," Wen said during a visit to eastern China's Zhejiang Province, according to a statement on the government's website last Saturday.
China's exports jumped 35.8 percent in March and imports climbed 27.3 percent, the customs bureau said yesterday. The growth in exports beat the forecasts of 24 of 25 economists in a Bloomberg News survey, while the gain in imports topped the 20.6 percent forecast.
"March export figures came in stronger than expected, shrugging off the impact of Japan's disaster and the surge in oil prices," said Qu Hongbin, chief China economist at HSBC Holdings Plc in Hong Kong. "This reconfirms that inflation rather than growth remains as the key risk for China. Get ready for more reserve ratio and rate hikes in the coming months."
China Resources Land Ltd, a state-controlled developer, dropped 3.7 percent. China's exports grew faster than expected, raising concern the government may strengthen its fight against inflation. Hong Kong developers slid after home prices fell. China Gas Holdings Ltd, an energy supplier to mainland homes and businesses, dropped 2.9 percent after Piper Jaffray Cos cut its rating to "neutral." Geely Automobile Holdings Ltd gained 2.3 percent after China's car sales rose.
The Hang Seng Index slid 0.4 percent to 24,303.07 at the close, the biggest drop since March 28, after rising as much as 0.3 percent. Twice as many stocks declined as rose on the 45- member Hang Seng Index. The Hang Seng China Enterprises Index of Chinese companies' H-shares rose 0.2 percent to 13,684.06.
"People are buying selectively," said Alex Wong, asset management director at Ample Capital Ltd in Hong Kong. "The sentiment remains bullish, but people are not too keen on certain sectors, like local property. People are a bit concerned about interest rates, and sales to residential projects are not picking up too strongly."
China Resources slumped 3.7 percent to HK$15.06 (US$1.94), while Guangzhou R&F Properties Co, the biggest real-estate company in the southern Chinese city, slid 2.8 percent to HK$11.32. Shimao Property Holdings Ltd declined 2.6 percent to HK$11.86.
The central government's aim to control the property market is "clear" and the determination is "firm," Wen said during a visit to eastern China's Zhejiang Province, according to a statement on the government's website last Saturday.
China's exports jumped 35.8 percent in March and imports climbed 27.3 percent, the customs bureau said yesterday. The growth in exports beat the forecasts of 24 of 25 economists in a Bloomberg News survey, while the gain in imports topped the 20.6 percent forecast.
"March export figures came in stronger than expected, shrugging off the impact of Japan's disaster and the surge in oil prices," said Qu Hongbin, chief China economist at HSBC Holdings Plc in Hong Kong. "This reconfirms that inflation rather than growth remains as the key risk for China. Get ready for more reserve ratio and rate hikes in the coming months."
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