Hong Kong Stocks Swing on China Manufacturing, Metals
Banks declined, with China Construction Bank Corp., the country’s second biggest lender, dropping 2.6 percent. China Resources Land Ltd. slid 3.8 percent as mainland developers declined as home prices continue to defy government efforts to suppress the real estate market and amid reports mall operators are forgoing rent to stave off vacancies. Zijin Mining Group Co., China’s largest gold miner by market value, led metal-linked stocks higher, gaining 5.1 percent as gold, copper and aluminum surged overnight.
“It’s just range bound, people are still in holiday mode and the market has consolidated after the rebound in the last couple of days,” said Benjamin Tam, a Hong Kong-based fund manager who helps oversee about $1.5 billion at IG Investment. “The Chinese banks are weaker, but that is just some profit taking.”
The benchmark Hang Seng Index fell 0.6 percent to 20,682.75 as of 10:09 a.m. in Hong Kong after rising as much as 1 percent. The Hang Seng China Enterprises Index of mainland companies listed in the city fell 1 percent to 9,221.25.
To contact the reporter on this story: Eleni Himaras in Hong Kong at firstname.lastname@example.org
To contact the editor responsible for this story: Nick Gentle at email@example.com