Most Hong Kong stocks fell after a report showed China’s foreign direct investment unexpectedly slumped last month, adding to a string of worse-than-estimated data on the world’s second-largest economy.
China Vanke Co. (2202), the mainland’s biggest developer, declined 2.2 percent after posting results and as a report showed new-home prices in July fell in almost all cities that the government tracks. Tencent Holdings Ltd., Asia’s biggest Internet company, dropped 1.2 percent after its associate JD.com Inc. posted a wider-than-expected loss. China Mobile (941) Ltd. jumped 3.2 percent as Nomura Holdings Inc. raised its price target on the world’s biggest mobile-phone carrier.
Almost two shares fell for each that rose on the Hang Seng Index (HSI), which closed little changed at 24,955.46 after swinging between an 0.8 percent loss and a 0.1 percent gain. The measure advanced 2.6 percent last week, briefly touching 25,000 for the first time since May 2008. The Hang Seng China Enterprises Index (HSCEI), also known as the H-share index, today slid 0.4 percent to 11,065.21 today.
“Investors are using moderating Chinese data as an excuse to sell,” Jackson Wong, vice president of Tanrich Securities Co. in Hong Kong, said by phone. “The slump in China’s FDI is a little bit disappointing.”
An official report today showed non-financial foreign direct investment in China dropped 17 percent to $7.8 billion in July. Analysts surveyed by Bloomberg had expected a 0.8 percent increase. Mainland data from new credit to industrial output released last week was weaker than expected.
Housing prices fell in 64 of 70 mainland cities last month from June, the National Bureau of Statistics said today, the most since January 2011 when the government changed the way it compiles the data. Agile Property Holdings Ltd. fell 1.3 percent to HK$6.27. Country Garden Holdings Co. lost 1.1 percent to HK$3.73.
China Vanke dropped 2.2 percent to HK$15.80 even after reporting a 5.6 percent climb in first-half profit from a year earlier to 4.81 billion yuan ($782 million) as it sold more small and medium-size homes that are less affected by market downturns.
The H-share gauge traded at 7.7 times estimated earnings, compared with 8.9 times for the Shanghai Composite Index and 11.5 for the Hang Seng Index and 16.4 on the Standard & Poor’s 500 Index (SPX) at the end of last week.
The Hang Seng China AH Premium Index increased 0.7 percent to 92.78, signaling a narrowing gap between dual-listed stocks in Shanghai and Hong Kong. The Shanghai Composite Index climbed 0.6 percent.
Tencent retreated 1.2 percent to HK$128.80. JD.com, an online retailer in which Tencent bought a 15 percent stake in March, reported that its loss widened to 582.5 million yuan ($94.8 million) in the three months ended June from 28.3 million yuan a year earlier. The loss was projected at 257.2 million yuan, the average estimate of six analysts compiled by Bloomberg.
Harbin Electric Co. (1133) tumbled 11 percent to HK$4.78. Brokerages including Citigroup Inc. and Credit Suisse Group AG downgraded their ratings on the stock as the utility posted first-half earnings that missed estimates.
HSBC Holdings Plc (5) dropped 0.5 percent to HK$83.50 after the compiler of the Hang Seng Index said it would reduce the maximum weighting of each stock on the gauge.
Among shares that advanced, China Mobile climbed 3.2 percent to HK$96.35. Nomura raised its share-price forecast to HK$115 from HK$90 while maintaining its buy rating.
Lenovo Group Ltd. gained 1 percent to HK$11.68, the highest close since April 2000. International Business Machines Corp. cleared a U.S. national-security review for the sale of its low-end server business to the Chinese personal computer maker.
Futures on the S&P 500 added 0.5 percent today. The U.S. equities benchmark gauge last week advanced 1.2 percent, for a second week of gains.
Foreign ministers of Ukraine and Russia discussed possibility of a cease-fire during talks in Berlin as European leaders push for an end to the conflict, German Foreign Minister Frank-Walter Steinmeier said told reporters in Berlin. The U.S. widened airstrikes on Iraq over the weekend and used bombers for the first time since the offensive began on Aug. 8 to help secure the country’s largest dam near Mosul that had been seized by insurgents.
To contact the reporter on this story: Jonathan Burgos in Singapore at email@example.com