China Stocks in Hong Kong Extend Loss Streak; Banks Slide
Hong Kong stocks fell, with a gauge of Chinese companies listed in the city headed for its longest losing streak in 17 years. Declines were led by financial and real estate companies.
Hang Lung Properties Ltd. (101), a Hong Kong-based developer that gets 42 percent of sales from China, sank 4.2 percent. Agricultural Bank of China Ltd., the nation’s third-biggest lender, slid 1.1 percent. Galaxy Entertainment Group Ltd., a casino operator founded by billionaire Lui Che Woo, climbed 1.7 percent, leading the sector higher after Wells Fargo Advisors LLC said Macau’s gaming revenue is rising this month.
The Hang Seng China Enterprises Index (HSCEI) dropped 0.9 percent to 10,038.68 as of 10:03 a.m. in Hong Kong, heading for a tenth day of decline, its longest streak of losses since November 1995. The Hang Seng Index (HSI) slipped 0.3 percent to 21,546.01.
The benchmark Hang Seng Index dropped 4.6 percent this year through yesterday, making Hong Kong the worst performer among the world’s developed equity markets, according to data compiled by Bloomberg. Shares on the gauge traded at 10.3 times estimated earnings, compared with 14.9 times for the Standard & Poor’s 500 Index. Trading volume was 21 percent below the 30-day intraday average.
Futures on the Hang Seng Index were little changed at 21,392. The HSI Volatility Index dropped 2.4 percent to 18.31, indicating traders expect a swing of 5.2 percent for the city’s benchmark equity measure in the next 30 days.
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