Stocks fall as developers, China Unicom drop
Updated: 2011-04-28 06:44
(HK Edition)
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Hong Kong stocks fell Wednesday, sending the Hang Seng Index (HSI) to its lowest level in a week, after companies including China Unicom (Hong Kong) Ltd slid on profit declines and as Chinese developers fell.
China Unicom dropped 2.5 percent, while Cosco Pacific Ltd lost 2 percent after saying first-quarter profit slid. China Resources Land Ltd sank 2.1 percent after the China Securities Journal said the government may raise down-payment requirements for first-home purchases.
The HSI dropped 0.5 percent to 23892.84 at the close, with about five stocks falling for every three that gained on the 45-member index. The Hang Seng China Enterprises Index lost 0.8 percent to 13452.44.
Chinese developers declined on concern the government will take more steps to curb property prices. China Resources lost 2.1 percent to HK$14.08, while China Overseas Land & Investment Ltd declined 1.5 percent to HK$15.48.
While mainland developers declined, Hong Kong property stocks led gains in early trading. Henderson Land Development Co climbed 0.9 percent to HK$53.60, while Sun Hung Kai Properties Ltd gained as much as 2 percent.
Hong Kong's government Wednesday sold a residential building site at the top end of estimates in its first auction since imposing the toughest measures yet to curb home prices in November.
Futures on the HSI slid 0.6 percent to 23825. The HSI Volatility Index gained 2.2 percent to 18.52, indicating options traders expect a swing of 5.3 percent in the HSI in the next 30 days.
Bloomberg
(HK Edition 04/28/2011 page3)