Hong Kong Stocks Swing Between Gains and Losses on China
Hong Kong stocks swung between gains and losses as the outlook for global economic growth weakened and as mainland developers gained after China reported rising home prices in March.
Miners including Jiangxi Copper Co. (358), the country’s biggest producer of the metal, fell as commodity prices retreated. HSBC Holdings Plc, Europe’s biggest lender, slid 0.5 percent after the International Monetary Fund said as much as 20 percent of non-bank corporate debt in the weakest euro-area economies is unsustainable. Mainland developers gained as home prices rose in almost all Chinese cities in March, with Guangzhou-based Evergrande Real Estate Group Ltd. adding 2 percent.
The Hang Seng Index (HSI) gained 0.2 percent to 21,610.14 as of 10:19 a.m. after falling as much as 0.7 percent. The Hang Seng China Enterprises Index of Chinese companies listed in the city rose 0.6 percent to 10,359.28.
“The recent trend is for individual traders focusing on individual sectors and stocks,” said Ben Kwong, chief operating officer at brokerage KGI Asia Ltd. in Hong Kong. “The overall the market trend is still weak because of the prevailing concern about bird flu and the local debt problem in China.”
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