Hong Kong Stocks Drop Ahead of Fed; China Mengniu Surges
Hong Kong stocks fell amid low trading volume before the outcome of a Federal Reserve meeting, with finance and developer shares sliding. China Mengniu Dairy Co. soared after bidding for a local baby-foods maker.
China Resources Land Ltd. lost 1.9 percent to lead property companies lower. China Life Insurance Co. (2628), the nation’s No. 1 insurance company, retreated 1.8 percent. China Mengniu, the country’s largest dairy, surged 6.2 percent after announcing a HK$12.5 billion ($1.6 billion) offer for Yashili International Holdings Ltd. as demand for infant formula surges.
The Hang Seng Index (HSI) slid 0.4 percent to 21,132.26 as of 9:55 a.m. in Hong Kong. About four shares declined for every one that gained on the 50-member gauge, with volume 26 percent below the 30-day intraday average. The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong dropped 1.2 percent to 9,613.58.
“It’s all about the Fed meeting tonight,” said Peter Esho, investment adviser in Sydney at Wilson HTM Investment Group, which oversees about $11.8 billion. “Everyone’s waiting for the direction they will give.”
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