HK shares slip on possible China bond default

HONG KONG, Mar 5 (Reuters): Hong Kong shares sank on Wednesday, led by cyclical counters, as China set a lower target for growth in fixed asset investment this year and a mainland listed company said it expects to default on bond payments.

The Hang Seng Index finished down 0.3 per cent at 22,579.8 points, while the China Enterprises Index of the leading offshore Chinese listings in Hong Kong sank 1.2 per cent.

In what would be the country's first domestic bond default, loss-making Chinese solar equipment producer Chaori Solar said it will not be able to meet interest payments on bonds due on Friday.

At Wednesday's start of China's annual parliament meeting, Premier Li Keqiang said the target for economic growth this year is 7.5 per cent, the same as set for 2013.