Hong Kong blue chips fell 0.8 percent on Wednesday and China issues halted their nine-session winning streak as worries about the health of the US economy led investors to sell large-caps like HSBC Holdings.
Investors also abandoned heavyweight China Mobile in favour of China Telecom on renewed speculation that the fixed-line provider could buy the CDMA network of China Unicom as it gets set to enter the wireless market.
"We're cautious," said Alex Wong, director at Ample Finance Group. "US data remains weak and there's quite a bit of downside ahead for China Mobile and HSBC, so we'll edge down further to 19,000 later on."
The benchmark Hang Seng Index closed down 152.92 points at 19,553.87 on turnover of HK$49.6 billion (U S$6.4 billion), up from Tuesday's HK$40.4 billion. The China Enterprises index of H shares, or Hong Kong-listed shares in mainland companies, fell 0.9 percent to 9,483.13.
US consumer confidence fell more than expected, the latest data showed on Tuesday, a day after a government report showed February sales of new US homes had fallen to their lowest rate in nearly seven years. The market will look to testimony by US Federal Reserve Chairman Ben Bernanke on Wednesday for a clearer picture on the US economy.
Hutchison Telecommunications International Ltd tumbled 4.4 percent to HK$14.76 in heavy trade after a media report said the sale of its majority stake in India's Hutchison Essar to Vodafone Group Plc could be delayed amid government inquiries.
Henderson Investment struck an all-time high after parent Henderson Land Development Co Ltd said on Tuesday it would pay US $1.55 billion (HK$12.1 billion) for its assets that mainly consisted of stakes in a Hong Kong-listed hotel company and ferry firm.
Henderson Investment raced up 6.5 percent to HK$15.52 and Henderson Land leapt 3.2 percent to HK$45.50. But Hong Kong and China Gas, which is controlled by Henderson Investment and had been bid up this week, declined 2.3 percent to HK$17.52 as the announced deal did not involve the gas distributor.
China Mobile dropped 1.1 percent to HK$69.80 while China Telecom jumped for a second straight day in active trade, ending the day up 1 percent at HK$3.89. Market participants said China's telecom regulators would favour the fixed-line provider - which has seen its subscribers increasingly switch to wireless - as it seeks to enter the cellular market dominated by China Mobile.
China Unicom gained 1.3 percent to HK$10.80. HSBC Holdings, the biggest drag on the blue chips, slid 1.1 percent to HK$135.50. The global lender said on Tuesday it would remain in the troubled US consumer finance market.
Comments
Comments are closed.