HK shares end down on China Mobile sale

19:31, September 08, 2010      

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Hong Kong stocks slumped on Wednesday, dragging down the Hang Seng Index by the most in almost a month, because of a sharp decline in China Mobile following Vodafone's sale of its stake in the index heavyweight.

The blue-chip Hang Seng Index fell 312.93 points, or 1.46 percent, to 21,088.86 after trading between 21,066.69 and 21,214. 81.

The Hang Seng China Enterprises Index of locally-listed Chinese companies slipped 1.5 percent to 11,776.72.

Market volume totaled 118.81 billion HK dollars, up sharply from 58.21 billion HK dollars Tuesday because of active trading in China Mobile after Vodafone's stake sale.

China Mobile, the world's largest phone carrier by market value, sank 3.8 percent to 78.90 HK dollars after Vodafone sold its 3.2 percent stake in the mobile operator.

Fellow heavyweight HSBC also dragged the benchmark index lower. It dropped 1.3 percent to 78.20 HK dollars because of renewed concerns over the financial health of European banks after questions emerged over recent stress tests on the lenders.

Conglomerate Swire Pacific didn't fall as much as the broader market, dropping 0.6 percent to 97.90 HK dollars, after it said it agreed to sell its holdings in two beverage-can joint ventures to its partner in the ventures, Crown Holdings, for a total of 150 million U.S. dollars.

Property shares retreated. China Resources Land Ltd., a state- controlled developer, declined 1.4 percent to 15.8 HK dollars. China Overseas Land & Investment Ltd., controlled by the nation's construction ministry, fell 1.6 percent to 17.12 HK dollars.

Bank of Communications Co., part-owned by HSBC Holdings Plc, slipped 2 percent to 8.3 HK dollars, on concern the mainland will require lenders to increase loan loss reserves. Bank of China Ltd., the nation's fourth-largest bank by market value, fell 1.5 percent to 4.01 HK dollars.

Motor makers advanced. Dongfeng Motor Group Co. gained 2.4 percent to 13.70 HK dollars, the biggest advance on the H-share index. Nissan Motor Co. and its Chinese partner will jointly produce and sell cars under the new brand Qi Chen from early 2012, said Hideki Kimata, senior general manager of the companies' joint venture unit.

Johnson Electric Holdings Ltd., which makes micromotors for consumer goods and the auto industry, jumped 3.3 percent to 3.75 HK dollars after saying it has appointed former Hong Kong Monetary Authority Chief Executive Joseph Yam as an independent non- executive director.

Yeebo International Holdings Ltd., a maker of liquid crystal displays, soared 21 percent to 1.26 HK dollars. The company said on Tuesday the China Securities Regulatory Commission approved an application for the initial public offering of its Nantong Jianghai Capacitor Co. venture.

All but four stocks dropped among the Hang Seng Index's 45 constituents. Futures on the gauge declined 1.6 percent to 21,031. (One U.S. dollar equals 7.8 HK dollars)

Source: Xinhua


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