Hong Kong stocks slipped 0.21 percent on Wednesday, failing to follow a US rally as investors locked in profits on top blue chips ahead of Christmas. But the successful trading debut of China media firm Beijing Media showed investors still have an appetite for select China IPOs despite the stalled listing of Hong Kong's first real estate investment trust, which was meant to cap a strong year for regional investment activity. "Too many people have left. No one is playing the market," said Francis Lun," general manager at Fulbright Securities.
The blue chip Hang Seng Index ended 0.21 percent, or 29.71 points lower, at 14,151.08. Volume shrank as the Christmas holiday approached with HK$17 billion (US $2.17 billion) worth of shares changing hands compared to recent averages of about HK$20 billion.
Traders still expect the index to spike up to about 14,500 by the end of 2004. But a lack of fresh local news and high valuations may make it difficult to propel the market.
Shares in China media firm Beijing Media rose 20 percent to HK$22.7 in their first day of trade from a starting price of HK$18.95 after a strategic investor scooped up 40 percent of the offering.
The advertising and sales unit of the Beijing Youth Daily is the first media firm controlled by China's government to list overseas and plans to invest funds raised in television along with other media acquisitions.
But last year's China IPO darling, China Life Insurance Co fell 2.7 percent to HK$5.40 after a strategic investor sold 107 million of the life insurer's shares at HK$5.35 each, raising a total of HK$572 million.
Another recently listed China firm, Semiconductor Manufacturing International Corp (SMIC) shed 3.39 percent to HK$1.71 despite a rally in chip related stocks after a broker upgrade of Intel Corp in US trade. SMIC shares have traced lower in the past month on lingering worries the industry will face a global slowdown in the coming year.
Casual wear retailer Esprit Corp and container shipping firm COSCO Pacific, the two top performing Hang Seng shares so far this year, both lost ground as investors locked in profits after a solid year of gains.
Esprit shares fell 1.91 percent to HK$46.10. COSCO Pacific fell 1.62 percent to HK$15.20.
Computer maker Lenovo Group, one of the year's worst performing stocks, topped blue chip gainers rising 2.06 percent to HK$2.47.
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