Shares on the Hong Kong stock exchange edged higher in the
morning despite a hike announced over the weekend by the Chinese
mainland central bank in required reserves, but plunged in the
afternoon to close in negative ground.
In a further move to tighten monetary policies, China's mainland
central bank on Saturday announced its 10th raise in the required
reserve ratio, by one percentage point, which analysts said was
higher than what the market had expected earlier.
The Hang Seng Index opened at 29,017.70, up 175.23 points or
0.61 percent. It held on in the morning, but shifted to a downward
move in the afternoon, losing its gained ground before closing at
28,501.50, down 341.37 points or 1.18 percent.
Analysts said they expected the market to move within a narrow
range as investors await signals from the U.S. Federal Reserve --
the central bank of the world's largest economy -- on a rate cut or
otherwise, which were expected after a meeting on Tuesday.
The benchmark's highest for Monday was 29,137.89 and the lowest
was 28,445.67, with turnover totaling 113.08 billion HK dollars
(14.61 billion U.S. dollars), down from the 140.12 billion HK
dollars (17.99 billion U.S. dollars) on Friday.
Most mainland shares were losers, sending the China Enterprises
Index down 431.75 points, or 2.45 percent, at 17,187.28, partly due
to the tightening pressure, which analysts said outweighed
expectations of the U.S. rate cut.
Developers and banks suffered the most in a wave of profit
taking in the afternoon.
HSBC held on in the morning but went down 2.9 HK dollars, or 2.
12 percent, to close at 133.8 HK dollars, partly due to profit
taking in the afternoon, on a turnover of 6.1 billion HK dollars,
contributing 91.78 points alone to the benchmark's falling.
Following was mainland energy giant PetroChina, down 0.56 HK
dollars, or 3.53 percent, at 15.32 HK dollars, contributing 52.36
points to the benchmark falling.
China Mobile, the mainland's largest mobile carrier and No. 1
stock on the Hong Kong main board by market capitalization, lost
1.7 HK dollars, or 1.2 percent, at 140.6 HK dollars, partly due to
selling following reduced weighting in the benchmark index.
China Shenhua, the coal mining company joining the Hang Seng
Index constituents starting Monday, fell along with most other
mainland stocks, down 0.6 HK dollars, or 1.22 percent, to close at
48.45 HK dollars.
China Railway, however, bucked the trend on its second day of
public trading in Hong Kong to rise 0.39 HK dollars, or 5.3
percent, closing at 7.75 HK dollars.
The finance sub-index lost the most, tumbling 650.25 points, or
1.59 percent, at 41,467.33 and the properties category also lost
242.20 points at 36,975.32.
The commerce and industry genre lost 180.19 points to close at
16,915.57, and the utilities sub-index closed at 39,683.75, down a
minor 37.30 points.
The Hang Seng mainland composite index lost 100.78 points to
close at 5,409.97 while its Hong Kong SAR counterpart edged down a
minor 15.11 points at 2,936.73.
(Xinhua News Agency December 11, 2007)
