Hong Kong Stocks Drop on China Housing; GCL-Poly Plunges
Hong Kong stocks declined amid concern a broad gain in Chinese home prices will limit the scope for monetary easing. GCL-Poly Energy Holdings Ltd. plunged after a unit of China’s sovereign-wealth fund agreed to sell a stake in the company.
GCL-Poly sank 12 percent after Chengdong Investment Corp. offered 1.2 billion shares in the largest maker of materials used in solar panels. Zoomlion Heavy Industry Science & Technology Co. (1157) retreated 1.1 percent after the machinery maker said a former employee took bribes and sold company secrets.
The Hang Seng Index lost 0.8 percent to 21,056.33 as of 9:50 a.m. in Hong Kong. About nine shares fell for each that rose on the 50-member gauge, with volume 11 percent above the 30-day intraday average. The Hang Seng China Enterprises Index slid 1.1 percent to 9,640.79.
“Any expansion of policy by the government and central bank will be limited,” said Ben Tam, a Hong Kong-based fund manager who helps oversee about $1.5 billion at IG Investment.
To contact the reporter on this story: Adam Haigh in Sydney at firstname.lastname@example.org
To contact the editor responsible for this story: Nick Gentle at email@example.com