Hong Kong Stocks Decline on China Data After 5-Week Gain
Hong Kong stocks fell, after the benchmark last week completed its longest weekly winning streak since October, as a report showed China’s industrial profit growth slowed.
Kunlun Energy Co., a mainland gas supplier controlled by PetroChina Co., slumped 3.7 percent, the biggest decline among stocks in the Hang Seng Index. GCL-Poly Energy Holdings Ltd. (3800), the world’s biggest producer of solar-grade polysilicon, rose 1.5 percent after European and Chinese negotiators reached an agreement to avoid tariffs on the material. Industrial & Commercial Bank of China Ltd. (601398), the country’s biggest lender, fell 0.8 percent after the nation said it will start auditing government debt.
The Hang Seng Index (HSI) declined 0.7 percent to 21,812.75 as of 10:12 a.m. in Hong Kong after rising five weeks through July 26. About seven stocks slid for each that gained. The Hang Seng China Enterprises Index of mainland companies listed in the city fell 1.3 percent to 9,626.98.
Net income at Chinese industrial companies increased 6.3 percent in June from a year earlier, the Beijing-based National Bureau of Statistics said July 27, down from a 15.5 percent pace in May. The world’s second-biggest economy will start a nationwide audit of government debt this week as the new Communist Party leadership investigates the threats to growth and the financial system from a record credit boom.
The HSI Volatility Index surged 10 percent to 18.70, indicating traders expect a swing of 5.4 percent for the equity benchmark in the next 30 days.
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