Jan. 14 (Bloomberg) -- Hong Kong stocks fell, with the benchmark Hang Seng Index retreating for the first time in three days, as Great Wall Motor Co. slumped the most since 2008.
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. 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. Tingyi (Cayman Islands) Holding Corp. led declines on the Hang Seng Index as UBS AG said competition among makers of instant noodles will increase.
The Hang Seng Index slid 0.4 percent to 22,791.28 at the close in Hong Kong, after declining as much as 1.1 percent. More than three stocks dropped for each that gained on the 50-member gauge on volume 18 percent less than the 30-day intraday average. The Hang Seng China Enterprises Index, also known as the H-share index, fell 0.3 percent to 10,149.22.
“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 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.
Great Wall fell to as low as HK$31.30 before paring losses to close down 12 percent at HK$34.45, the biggest one-day slump since November 2008. 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.
Tingyi slid 2.5 percent to HK$21.60. Competition between Tingyi and Uni-President China Holdings Ltd. will escalate this year, UBS said in a note. Uni-President is targeting instant-noodle sales growth that beats the industry average, UBS said, citing presentations by company management at a conference. Uni-President declined 2.5 percent to HK$7.35. Want Want China Holdings Ltd., a snack and beverages maker, fell 1.9 percent to HK$10.58.
TCL slumped 6.5 percent to HK$3.18 after saying it expects a full-year loss or a “substantial drop” in profit. Sales volume in China didn’t meet its target, it said in a statement to the city’s exchange yesterday.
The Hang Seng Index dropped 2.2 percent this year as data from China added to concern the economy is slowing. The measure traded at 10.1 times estimated earnings, compared with 15.4 for the S&P 500 yesterday. The H-share index slumped 6.2 percent this year and traded at 6.7 times estimated earnings, near levels reached during China’s cash crunch in June.
In mainland China, shares rebounded after the benchmark index reached the cheapest levels on record. The Shanghai Composite Index added 0.9 percent, reversing losses of much as 0.4 percent.
Among stocks that rose in Hong Kong, Pacific Century Premium Developments Ltd., the property unit of billionaire Richard Li’s PCCW Ltd., surged 25 percent to HK$3.83 after saying it’s in talks to sell an office, retail and residential complex in Beijing. PCCW gained 0.3 percent to HK$3.58.
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