Hong Kong H-Shares Tumble After Goldman Advises Exit
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China’s Hong Kong-listed shares fell after Goldman Sachs Group Inc. recommended clients exit a bet the stocks will gain, citing concern the central bank will raise borrowing costs to tame inflation.
The Hang Seng China Enterprises Index of 40 companies slumped 3 percent to 13,663.14, the most since May 25, at the 4 p.m. close in Hong Kong. Investors who followed the New York- based firm’s advice would have earned a return of 11.3 percent as the index rose above 14,000 from 12,616.01 since April 1, when the trade was initiated, analysts Robin Brooks and Dominic Wilson wrote in a research note yesterday. The recommendation was among the nine “Top Trades” Goldman Sachs made for 2010.