Hong Kong shares decline

Hong Kong stocks fell on Thursday as a decision by Beijing to intervene to brake rising prices hit Chinese energy and food shares, with top Asian oil refiner Sinopec Corp the top blue chip casualty. The benchmark Hang Seng Index closed down 1.4 percent, with investors also selling off Europe-focused retailer Esprit Holdings, which fell for a fourth straight day.
The fashion chain tracked its European peers after UK-based Marks and Spencer issued a profit warning and Germany reported retail sales fell 1.5 percent in November.
Shares in local property developers were also down after a holder was selling up to $604 million worth of shares in developer Cheung Kong (Holdings). "We're back to square one. There will probably be more consolidation in the remainder of the quarter," said Alex Tang, research director at Core Pacific Yamaichi.
"The price control will cap the upside for earnings and we may have to revise downward earnings forecasts," he said, referring to China's announcement on Wednesday that it would temporarily curb rising prices for basic necessities.
Chinese Premier Wen Jiabao also said on Wednesday that there should be no immediate increase in oil product prices, comments that shook oil refiner Sinopec, Thursday's most active stock and worst-performing blue chip. Sinopec shares skidded 6.4 percent to HK$10.76.
The blue chip Hang Seng Index closed down 384.99 points to end at 27,230.86. The China Enterprises index of H shares, or Hong Kong-listed shares in mainland companies, fell 0.7 percent, or 111.77 points, to 16,027.69. Mainboard turnover was HK$123.3 billion (US $15.8 billion) compared to Wednesday's HK$120.3 billion.
The news of China's move to tamper with market prices also dampened hopes for any near-term tariff increases by China's power producers. Huaneng Power sank nearly 5 percent to HK$7.78 and China Resources Power dived 8.3 percent to HK$23.70.
Food suppliers also sank, with Uni-President China Holdings Ltd plunging 9.5 percent to HK$5.81. Tsingtao Brewery dropped 8.2 percent to HK$32.50. Fertiliser producers were clobbered too. China Blue Chemical Ltd shed nearly 9 percent to HK$5.44 and Sinofert Holdings shares were pounded 10.2 percent to HK$7.39.
Esprit tanked in heavy trade, ending at HK$100.10, down 6.1 percent.
Among Hong Kong property developers, Cheung Kong slid 3.4 percent to HK$141 and MTR Corp, the top holder of Hong Kong's land bank, tumbled 4.5 percent to HK$32.70. The Hang Seng sub-index of property shares underperformed with a 2.7 percent loss.