Hong Kong shares fall

Hong Kong stocks fell on Monday, tracking losses in overseas equities on concern over US economic weakness, while investors looked ahead to a spate of major corporate earnings due this week. HSBC Holdings, the day's most active stock, fell as much as 3 percent before ending the day down 1.16 percent at HK$119.30 - ahead of its results.
The global lender said after the market closed that its profit rose 10 percent last year, just below analysts' forecasts. "The sentiment is a little mixed. Of course the market followed overseas markets lower, but it seems further downside pressure is not huge because the market expected not-bad results from HSBC," said Ben Kwong, associate director of KGI Asia Ltd. "The rebound in the A-share market in the afternoon also helped improve market sentiment here."
The market is now looking ahead to several company results due this week, including Cathay Pacific and Hong Kong Exchanges and Clearing Ltd. They fell 2.1 percent and 3.8 percent, respectively, dragged down by the weaker market. Chinese stocks rose sharply in Shanghai on Monday, far outperforming slides in foreign markets as turnover hit a one-month high, because of speculation that authorities might cut a stock trading tax.
The benchmark Hang Seng Index ended down 3.07 percent at 23,584.97. The China Enterprises Index of Hong Kong-listed mainland companies, or H shares, finished down 3.53 percent at 13,439.92. Mainboard turnover was HK$81.1 billion ($10.4 billion), level with Friday's HK$80.1 billion. HSBC-controlled Hang Seng Bank, which also released final results on Monday, fell 2 percent to HK$147.10. Port stocks skidded, with China Merchants Holdings falling 7.46 percent.
Ping An Insurance (Group) Co, which is planning one of the world's biggest equity sales, slid 3.37 percent to HK$58.75. The Chinese insurer is facing selling pressure on domestic stock markets, after $31 billion worth of local-currency A shares freed up for trade on Monday after the end of a lockup period.
Uni-President China Holdings Ltd bucked the trend to rise 6.71 percent to HK$4.61 after saying it would buy $30 million worth of shares in listing candidate Want China Holdings Ltd at the IPO price. Shares of China Eastern Airlines fell 3.17 percent. The parent of larger rival Air China urged China Eastern on Saturday to review its rejection of a proposed tie-up between the two carrier.