Most Hong Kong stocks fell as developers retreated after yesterday’s rally. Tencent Holdings Ltd., which had a stock split take effect today, led gains after profit soared.
About three shares fell for every two that rose as the Hang Seng Index (HSI) gained 0.4 percent to 22,671.53 as of 9:43 a.m. in Hong Kong. The Hang Seng China Enterprises Index (HSCEI), also known as the H-share index, slid 0.3 percent to 9.964.50.
Stocks jumped yesterday as Chinese developers climbed amid speculation the government will take further steps to shore up the property market and support economic growth. Through yesterday the Hang Seng Index is down 3.1 percent this year, the second-worst performance among major developed markets tracked by Bloomberg. The gauge traded at 10.5 times estimated earnings at the last close, compared with a multiple of 16 for the Standard & Poor’s 500 Index.
Industrial & Commercial Bank of China Ltd., the nation’s largest lender, will accelerate its approval process for mortgages, the official Xinhua News Agency reported yesterday, citing an unidentified bank official. The People’s Bank of China told the country’s 15 biggest banks on May 13 to expedite mortgages.
Tencent Holdings Ltd. (700) jumped 5.7 percent to HK$108.60. Asia’s largest Internet company’s first-quarter revenue surged from online games and advertising through its messaging services. Net income jumped 60 percent to 6.46 billion yuan ($1 billion), compared with the 4.86 billion yuan average analysts surveyed by Bloomberg. The company today implemented a 5-1 stock split to boost holdings by individuals. The closing price yesterday before the split was HK$514.
Futures on the S&P 500 were little changed after the underlying index fell from a record high as investors resumed selling off small-cap and Internet shares.
To contact the reporter on this story: Kana Nishizawa in Hong Kong at firstname.lastname@example.org