Hong Kong's Stocks Decline on Possible Shanghai Property Tax, Ping An Sale
Hong Kong stocks fell, paring the benchmark index’s first weekly gain in five, after Newbridge Capital LLC sold shares in Ping An Insurance (Group) Co., and aluminum slid on concern European budget cuts will curb growth.
Ping An, China’s second-largest insurer, declined 2 percent. Aluminum Corp. of China Ltd., the nation’s largest producer of the metal, fell 3.2 percent. North Mining Shares Co. surged 5.7 percent after the real estate investor said it acquired a mine.
“External concerns worry me more because Europe’s problems are about a threat of extending a recession,” said Danny Yan, a portfolio manager at Taifook Asset Management Ltd., which oversees $400 million. “We reduced our cash level last week and increased our holdings in financials because valuations are attractive, and a lot of bad news has been priced in.”
The Hang Seng Index dropped 1.4 percent to close at 20,145.43, halting a two-day, 1.4 percent advance. That pared the measure’s gain this week to 1.1 percent.
The Hang Seng China Enterprises Index, which tracks the so- called H shares of Hong Kong-listed Chinese companies, declined 1.2 percent to 11,588.97.