Hong Kong Stocks Decline a Second Day as Developers, Banks Drop
Sun Hung Kai Properties Ltd., a developer which gets most of its revenue in Hong Kong, fell 0.7 percent. China Resources Land Ltd., a state-controlled developer, sank 1.5 percent after Premier Wen Jiabao said China should “gradually” establish a property tax system. Industrial and Commercial Bank of China Ltd. sank 1.4 percent, leading a decline by lenders. Golden Wheel Tiandi Holdings Co. (1232) jumped 13 percent on its trading debut.
The Hang Seng Index (HSI) lost 0.5 percent to 23,261.64 as of 10:02 a.m. in Hong Kong. The Hang Seng China Enterprises Index of mainland companies dropped 1.1 percent to 11,869.718 as a report showed China’s foreign direct investment declined for the first full year since 2009 as manufacturers relocated to markets with cheaper labor.
Futures on the Standard & Poor’s 500 Index fell 0.1 percent today. The gauge yesterday added 0.1 percent as a rally in retail and transportation companies overshadowed concern about discussions on raising the U.S. government’s debt ceiling.
Hong Kong’s benchmark index surged 23 percent last year as China’s economy showed signs of improvement and as central banks around the globe added stimulus. Shares on the measure traded at 11.3 times estimated earnings yesterday, compared with 13.3 for the S&P 500 and 12 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
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