Hong Kong Stocks Drop After Storm Closure Shuts Markets
Hong Kong stocks fell a second day amid low volume in afternoon trading after a storm shut the city’s markets in the morning and as power producers declined. China Galaxy Securities Co. surged on its debut.
Huaneng Power International Co. (902), the publicly traded unit of China’s largest electricity producer, tumbled 8.4 percent after its rating was cut at Citigroup Inc. China Galaxy, a brokerage controlled by the country’s sovereign wealth fund, jumped 6.6 percent. Cheung Kong Holdings Ltd., controlled by billionaire Li Ka-Shing, climbed 1.4 percent to lead property developers higher.
The Hang Seng Index slid 0.6 percent to 23,229.72 as of 2:11 p.m. in Hong Kong. Two stocks fell for each that gained the 50-member gauge, with trading volume 31 percent below the 30-day intraday average. The Hang Seng China Enterprises Index (HSCEI) of mainland companies slid 0.6 percent to 11,016.74 before the release of China’s preliminary manufacturing data tomorrow.
“The overall Hong Kong market may be slightly better in the very near term, but in the medium term we still need to rely on China macro data,” said Teresa Chow, senior fund manager at RBC Investment (Asia) Ltd., which oversees about $1.1 billion. “China’s economic data will remain modest, and the market is now adjusting for that.”
Futures on the Hang Seng Index declined 0.4 percent to 23,192. The HSI Volatility Index dropped 0.8 percent to 16.54, the biggest gain since April 15. The level indicates traders expect a swing of 4.7 percent for the equity benchmark in the next 30 days.
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