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BIZCHINA / Center |
HK feels subprime pinchBy Hanny Wan and Zhang Shidong (China Daily)
Updated: 2007-08-16 06:57 Hong Kong's stocks fell yesterday, pushing the Hang Seng Index to a two-month low, on concern a US housing slump and related mortgage defaults pose a threat to global economic growth. "It's a drag on market sentiments," said Mona Chung, who helps manage more than $2 billion at Daiwa Asset Management Ltd in Hong Kong. "We've turned a bit more defensive. " Li & Fung Ltd led exporters lower after Wal-Mart Stores Inc cut its profit forecast, heightening concern that US demand is cooling. The Hang Seng Index slid 631.60, or 2.9 percent, to 2375.72, its lowest close since June 15. The Hang Seng China Enterprises Index, which tracks 41 mainland companies' H shares, slipped 3.3 percent to 11989.16, its lowest close since June 27. The mainland's stock index was little changed. China Southern Airlines Co, the nation's biggest carrier, gained after the government suspended applications for new airlines until 2010. CITIC Securities Co led the decline by brokerages on concern that recent gains more than reflect earnings prospects. Shanghai's CSI 300 Index added 3.18 points to 4798.75 at the close, after gaining as much as 0.9 percent and falling as much as 2 percent throughout the day. There were 109 stocks that rose and 179 that fell. In Hong Kong, HSBC dropped HK$3.40, or 2.4 percent, to HK$137.90. Its North America earnings in the first half slumped 35 percent to $2.44 billion because of loan defaults by subprime borrowers, the lender said on July 30. BOC Hong Kong (Holdings) Ltd, the Hong Kong unit of Bank of China Ltd, lost 60 cents, or 3.1 percent, to HK$18.62. US mortgage defaults may lead to losses of about $150 billion for creditors worldwide, Calyon, a unit of Credit Agricole SA, said in a research note.
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