Hong Kong stocks slid 1.22 percent on Monday in their largest one-day percentage drop in more than a month, as rate rise fears, record oil prices and weak regional markets prompted investors to book profits.
But the day's spotlight belonged to port plays, which were buoyed by Hutchison Whampoa Ltd's 20 percent stake sale of its port business. China Merchant Holdings (International) Co Ltd jumped 6.5 percent to HK$27.15, having earlier set a record peak, and COSCO Pacific Ltd climbed 4 percent to HK$18.5, a level unseen since July 1997.
Hutchison rose 3 percent to HK$77.60. H shares, or Hong Kong-listed shares in mainland firms, logged their biggest one-day percentage drop since early March, as profit-taking pressure weighed on high-flying financial issues. The benchmark Hang Seng index ended at 16,705.67, while the China Enterprises index of H-shares fell 2 percent to 7,051.94. The Nikkei ended down 2.8 percent.
Turnover was heavy at HK$41.7 billion (US $5.3 billion), up slightly from Friday's HK$40.9 billion.
"Surging oil prices and the Nikkei gave investors an excuse to take profits," said Peter Lai, director at DBS Vickers. After a powerful rally last week, property shares retreated. The Hang Seng property sub-index fell 1.2 percent, with Hang Lung Properties Ltd sliding 7.3 percent to HK$15.25 and Wheelock and Co Ltd declining 2 percent to HK$14.65.
PICC Property and Casualty Ltd, China's largest property insurer, fell nearly 14 percent to HK$2.975 after reporting weaker-than-expected results. Bank of Communications Co Ltd (BoCom) fell 2.6 percent to HK$4.725 and Ping An Insurance Co Ltd dropped 5.5 percent to HK$21.35. "Financial issues have been the most expensive sector - and also the best-performing - in the last six months," said Jerry Lou, China strategist at Morgan Stanley.
"Profit-taking is inevitable, and there's also IPO pressure." A pair of high-stakes initial public offerings by mainland banks Industrial and Commercial Bank of China (ICBC) and Bank of China are expected before the end of the year.
Mainland property counters also came under pressure as investors feared Beijing would curb rapid investment in China after the country posted a 10.2 percent jump in first-quarter GDP.
China Overseas Land and Investment Ltd, the country's top developer, sank 9.3 percent to HK$5.35 and Tian An China Investment Co Ltd slid 7.5 percent to HK$4.30. The market can expect some volatility ahead of Thursday, when April futures expire, traders said.
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