HK, China shares hit three-week closing lows on banks, property
Sunday, 20 December 2009
HONG KONG/SHANGHAI, Dec 19 (Reuters): Shares in Hong Kong and China fell to three-week closing lows, led by banks and properties, after tough new proposals by banking regulators and Beijing's tighter curbs on buying government land reignited fears about the sectors' outlooks.
Hong Kong's benchmark Hang Seng Index ended down 0.8 per cent or 171.75 points at 21,175.88, retreating for a fourth straight session.
For the week, the index has fallen 3.3 per cent on fears of more fund outflows as the US dollar strengthens.
Brokers said the market was likely to extend its sell-off.
"I think it will continue for a week until the US government issues its bonds. This will attract more buyers (for the bonds) and put pressure on the (stock) market," said Steven
Lam, vice-president at Karl-Thomson Securities.
Banking stocks retreated on worries they would have to set aside more profits or even raise capital as protection against hard times, under tighter proposals from international regulators set to be phased in from 2012.
Index heavyweight HSBC fell 0.85 per cent to a three-week low at HK$87.45. Its London-listed shares fell 3.5 per cent Thursday. Standard Chartered slipped 1.85 per cent to HK$191.20.
"The sell-off will be for a short period of time because of capital outlook worries," Lam said. "But economies are recovering and the worst scenario has passed. Growth will come from Hong Kong and China and that will protect their earnings."
Turnover rose to HK$69.75 billion ($8.99 billion), from Thursday's HK$66.60 billion.
The China Enterprises Index of top locally listed mainland Chinese stocks closed down 1.33 per cent at 12,334.82.
Real estate developer Minmetals Land dropped 16.67 per cent to a two-week low of HK$2.35 after the company said it would sell HK$955.5 million ($123.3 million) worth of new shares to its controlling shareholder, raising capital to fund the acquisition of land and for investment in real estate development projects.
Chinese banks retreated for a fourth straight session on persistent worries that Beijing might cool a lending binge.
The sector has been hit hard by news from China this week that Beijing is seeking to control growth in its red-hot real estate market and a call by the nation's banking regulator to issue more syndicated loans to help reduce the risk of bad loans after a burst of new lending this year.
China Construction Bank fell 1.4 per cent to HK$6.36, its lowest level in more than two months. The lender said Friday it had adequate capital to cover its requirements.
Hong Kong's benchmark Hang Seng Index ended down 0.8 per cent or 171.75 points at 21,175.88, retreating for a fourth straight session.
For the week, the index has fallen 3.3 per cent on fears of more fund outflows as the US dollar strengthens.
Brokers said the market was likely to extend its sell-off.
"I think it will continue for a week until the US government issues its bonds. This will attract more buyers (for the bonds) and put pressure on the (stock) market," said Steven
Lam, vice-president at Karl-Thomson Securities.
Banking stocks retreated on worries they would have to set aside more profits or even raise capital as protection against hard times, under tighter proposals from international regulators set to be phased in from 2012.
Index heavyweight HSBC fell 0.85 per cent to a three-week low at HK$87.45. Its London-listed shares fell 3.5 per cent Thursday. Standard Chartered slipped 1.85 per cent to HK$191.20.
"The sell-off will be for a short period of time because of capital outlook worries," Lam said. "But economies are recovering and the worst scenario has passed. Growth will come from Hong Kong and China and that will protect their earnings."
Turnover rose to HK$69.75 billion ($8.99 billion), from Thursday's HK$66.60 billion.
The China Enterprises Index of top locally listed mainland Chinese stocks closed down 1.33 per cent at 12,334.82.
Real estate developer Minmetals Land dropped 16.67 per cent to a two-week low of HK$2.35 after the company said it would sell HK$955.5 million ($123.3 million) worth of new shares to its controlling shareholder, raising capital to fund the acquisition of land and for investment in real estate development projects.
Chinese banks retreated for a fourth straight session on persistent worries that Beijing might cool a lending binge.
The sector has been hit hard by news from China this week that Beijing is seeking to control growth in its red-hot real estate market and a call by the nation's banking regulator to issue more syndicated loans to help reduce the risk of bad loans after a burst of new lending this year.
China Construction Bank fell 1.4 per cent to HK$6.36, its lowest level in more than two months. The lender said Friday it had adequate capital to cover its requirements.