Hong Kong Stocks Heading for Sixth Week of Declines
Hong Kong stocks fell a fourth day, heading for the longest weekly losing streak in 4 1/2 years, amid concern a worsening credit crunch for Chinese banks and a stalling recovery in the world’s second-largest economy will hamper earnings.
Industrial & Commercial Bank of China Ltd. sank 2.4 percent, leading financial shares lower. The world’s largest lender hasn’t risen a single day this month. Galaxy Entertainment Group Ltd. dropped 6.6 percent as JPMorgan Chase & Co. cut its recommendation on the the Macau casino operator founded by billionaire Lui Che Woo. China Resources Land Ltd., the second-biggest mainland developer traded in Hong Kong, retreated 3 percent.
The Hang Seng Index dropped 1.9 percent to 20,003.57 as of 9:45 a.m. in Hong Kong, extending this week’s slide to 4.6 percent. The equity benchmark is heading for a sixth week of declines, the longest such losing streak since October 2008. All but one of the 50 companies on the index fell, with volume 50 percent above the 30-day intraday average. The Hang Seng China Enterprises Index (HSCEI) lost 2.2 percent to 9,058.63.
“We see a lack of recovery momentum in China,” Tai Hui, Hong-Kong based chief market strategist for Asia at JPMorgan Asset Management, which oversees about $1.5 trillion globally, said in a Bloomberg TV interview. “What’s happening in China with the data as well as the liquidity squeeze have added to uncertainty. The government and central bank are willing to let the economy go through some pain.”
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