Hong Kong Stocks Fall Toward Longest Losing Streak Since April
Hong Kong stocks fell, with the benchmark index headed for its longest losing streak in two months, amid concern about a cash crunch in China’s financial system and reduced U.S. Federal Reserve stimulus.
Agricultural Bank of China Ltd. (601288), the nation’s No. 3 lender, declined 2.6 percent. Li & Fung Ltd. (494), a supplier of toys and clothes to retailers including Wal-Mart Stores Inc., fell 0.8 percent. Cnooc Ltd., China’s biggest offshore oil company, retreated 2.5 percent on lower crude prices. Belle International Holdings Ltd. (1880), the nation’s largest footwear retailer, sank 6.1 percent after BNP Paribas SA cut its target price.
The Hang Seng Index (HSI) dropped 1.6 percent to 19,937.66 as of 10 a.m. in Hong Kong. All but seven stocks declined in the 50-member gauge, which is heading for its lowest close since Sept. 11. Trading volume was 25 percent more than its 30-day intraday average. The Hang Seng China Enterprises Index (HSCEI) of mainland companies slid 2.6 percent to 8,995.57.
Futures on the Hang Seng Index declined 1.7 percent to 19,859. The HSI Volatility Index climbed 11 percent to 25.6, the highest in a year, indicating traders expect a swing of 7.3 percent for the equity benchmark in the next 30 days.
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