Breaking News

Tweet TWEET

Hong Kong Stocks Decline for First Time in Three Days

Hong Kong stocks fell, with the benchmark Hang Seng Index retreating for the first time in three days, as Great Wall (2333) Motor Co. slumped.

Great Wall tumbled as much as 20 percent after China’s biggest maker of sport utility vehicles said it delayed the introduction of its Haval H8 model for three months to address technical deficiencies. Haitian International Holdings Ltd., which makes factory machinery and plastic moulds, dropped 3.7 percent as industrial companies led declines on the Hang Seng Composite Index. TCL Multimedia Technology Holdings Ltd. slumped 6.5 percent after the television maker said it expects a loss or a drop in full-year profit.

The Hang Seng Index slid 0.3 percent to 22,830.40 as of 1:06 p.m. in Hong Kong, after declining as much as 1.1 percent. Almost two stocks dropped for each that gained on the 50-member gauge on volume 9 percent less than the 30-day intraday average. The Hang Seng China Enterprises Index (HSCEI), also known as the H-share index, fell 0.1 percent to 10,168.45.

“We are in a weak market,” said Alex Wong, a Hong Kong-based director of asset management at investment bank Ample Capital Ltd. “The Hong Kong market is independent from the U.S. during gains, but it’s dragged down when things are falling.”

Futures on the Standard & Poor’s 500 Index were little changed today after the equity gauge dropped 1.3 percent yesterday, the steepest decline since November, amid concern over valuations after benchmark indexes rallied to all-time highs in 2013.

U.S. Stocks

U.S. stocks extended losses after Federal Reserve Bank of Atlanta President Dennis Lockhart said the U.S. economy is on “solid footing” and he would support continued stimulus cuts. Lockhart doesn’t vote on policy in 2014. The Fed, which next meets Jan. 28-29, last month said it would reduce its monthly bond-buying program, citing a recovery in the labor market.

In China, the central bank will release December data on aggregate financing and new loans this week. Money supply growth may have slowed to 13.9 percent year-on-year, from 14.2 percent in November, according to the median estimate of 38 economists in a Bloomberg survey.

The Hang Seng Index (HSI) dropped 1.8 percent this year through yesterday as data from China added to concern the economy is slowing. The measure traded at 10.1 times estimated earnings yesterday, compared with 15.4 for the S&P 500. The H-share index slumped 5.9 percent this year through yesterday.

Great Wall fell to as low as HK$31.30 before paring losses, trading down 12 percent at HK$34.55. The company said it delayed the debut of its Haval H8 model for three months to fix eight deficiencies ranging from insensitive door stoppers to low steering resistance.

To contact the reporter on this story: Kana Nishizawa in Hong Kong at knishizawa5@bloomberg.net

To contact the editor responsible for this story: Sarah McDonald at smcdonald23@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.