Hong Kong’s Hang Seng Index fell, sending the index to its biggest weekly drop in almost five months, as banks and developers slid amid speculation that China will step up policies to curb inflation and as North Korea warned of war if its clash with the South escalated.
Industrial & Commercial Bank of China Ltd., the nation’s No. 1 lender by market value, sank 1.8 percent after the Shanghai Securities News said the government may cut the target for new lending next year. China Resources Land Ltd., a state-controlled developer, dropped 1.1 percent. Hong Kong developers also fell on concern government measures to curb property prices are slowing the real-estate market. China Modern Dairy Holdings Ltd., a milk producer, tumbled 13 percent on its first day of trading.
“The macro-economic condition isn’t that good with China’s monetary tightening concerns,” said Francis Lun, general manager at Fulbright Securities Ltd. Hong Kong’s “government measures to cool property prices are showing some effect, and developers are headed for a long decline.”
The Hang Seng Index fell 0.8 percent to 22,877.25 at the close, with all but five stocks declining on the 45-member gauge. The index fell 3.1 percent this week, the biggest weekly drop since the period ended July 2. The Hang Seng China Enterprises Index of so-called H shares of Chinese companies lost 1.4 percent to 12,757.10.
Futures on the Hang Seng Index slid 0.8 percent to 22,860.
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