Hong Kong stocks decline

Hong Kong blue chips fell 2.9 percent on Tuesday in their worst one-day percentage drop in six months, as sharp losses on Wall Street triggered a broad sell-off in a market that recently set successive records.
Steep declines in heavyweight China Mobile was the biggest drag on the blue chips while Hong Kong property developers underperformed as the city's first major land auctions this fiscal year had mixed performances.
Investors also shed shares in China Construction Bank and other high-flying mainland lenders, driving the Hong Kong-listed shares in mainland companies, or H shares, down 4.5 percent to see their steepest one-day percentage loss since June. "This is just a healthy correction," said Patrick Shum, chief strategist at Karl Thomson Securities. "The market has accumulated too many gains. "I still remain bullish. I think we'll have another rally before the end of the year. The money is still in Hong Kong."
The benchmark Hang Seng index lost 564.48 points to end at 18,639.53, its lowest close since November 1. All but one of the 36 index components declined. The China Enterprises index of H shares ended at 8,133.78, a two-week closing low. Turnover was a high HK$58.9 billion (US $7.6 billion) compared to Monday's HK$45.1 billion.
The market has exceeded expectations in recent weeks, ringing up record highs to defy a long-awaited correction. "The US and European markets gave Hong Kong an excuse for a pullback," said Linus Yip, strategist at First Shanghai Securities, who sees 18,400 - the previous Hang Seng index record - as the near-term support level.
"The major concern now is the US dollar. If it has a drastic drop, it could cause uncertainties in financial markets all over the world." Mainland financial stocks were the day's most active. Bank of China slid 5.3 percent to HK$3.56 and Industrial & Commercial Bank of China tanked 5.3 percent to HK$3.76.
China Construction Bank plunged 6.4 percent to HK$3.79. China Life fell 5 percent to HK$18.36. Among Hong Kong developers, Cheung Kong dived 5.1 percent to HK$90.55 and Sun Hung Kai Properties plummeted 4 percent to HK$86.95. The Hang Seng property sub-index was hammered 4.8 percent to 21,504.24.
China Mobile plunged 4.2 percent to HK$64.5 while another market heavyweight HSBC Holdings Plc dropped 1.8 percent to HK$142.80. Exporter Li & Fung fell 4.1 percent to HK$22.05 following a disappointing sales estimate from its key customer, Wal-Mart Stores Inc, signalling concerns about the holiday shopping season ahead in the world's largest economy.