Stocks fall on mainland concerns
Updated: 2010-12-24 07:07
(HK Edition)
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Hong Kong stocks fell, reversing gains, as concerns about the mainland's scrutiny of property investment overshadowed optimism of a global recovery after the US economy expanded faster than estimated.
The Hang Seng Index (HSI) lost 0.6 percent to close at 22,902.97, after rising as much as 0.5 percent. The Hang Seng China Enterprises Index declined 0.8 percent to 12,516.52.
China Overseas Land slid 1.4 percent to HK$14.60. Hang Lung Properties Ltd, a developer of real estate in Hong Kong and the mainland, fell 1.5 percent to HK$36.25.
The Commerce Ministry ordered local authorities to halt the approval of some foreign property investments to curb speculative buying, it said in a November 22 statement that was posted on its website Wednesday.
Li & Fung advanced 2.3 percent to HK$44.25, the biggest gain on the HSI. Techtronic Industries Co, maker of Hoover vacuum cleaners and Ryobi power tools, rose 0.6 percent to HK$10.60.
The US economy grew at a revised 2.6 percent annual rate in the third quarter, compared with a 2.5 percent estimate issued last month, a US Commerce Department report showed Wednesday.
Trinity Ltd gained 3.4 percent to HK$8.26 after agreeing to buy Cerruti Holdings for as much as 52.6 million euros ($69 million). Cerruti operates licensing and distribution of menswear with the same brand name.
Both Trinity and Li & Fung Ltd are affiliates of closely held Li & Fung Group.
Zoomlion climbed 8 percent to HK$16.18. Hengxin Technology Ltd declined 1.3 percent to HK$2.22 on its debut. The supplier of coaxial cables used in mobile communications sold 98.7 million shares at HK$2.25 apiece, raising net proceeds of HK$95 million in a Hong Kong initial share sale.
United Energy Group Ltd slumped 16 percent to HK$1.51 after the investment holding company said it won't proceed with a share placement it had been considering.
Six stocks fell for each that rose among the 45 constituents of the gauge. Its futures slid 0.9 percent to 22,894.
Bloomberg
(HK Edition 12/24/2010 page3)