HK Shares End Down on China Growth Concern

Hong Kong, E-finet (13/3) -- Hong Kong shares ended Wednesday lower as investors feared Chinese property sector tightening could upend a nascent economic recovery. The blue-chip Hang Seng Index fell 333.95 points, or 1.5%, to 22556.65, falling below the Dec. 31 close of 22656 for the first time this year. Trading volume totaled 73.66 billion Hong Kong dollars (US$9.50 billion), compared with HK$69.14 billion Tuesday. Shares of Mainland developers, particularly those with exposure to the city of Shenzhen, slumped after web portal Sina Finance reported the municipal government has imposed property price curbs. Blue-chip developer China Resources Land fell 4.0% to HK$20.35, Kaisa Group fell 7.2% to HK$2.06 and Shenzhen Development fell 7.8% to HK$2.82. There are no details of the Shenzhen measures, 'hence the overhang remains. Investors for now may take a wait-and-see stance, like buyers in the physical property market.' Some investors fear more property tightening in China could slow economic growth, which data show is fragile. Chinese companies bore the brunt of the blue chip selloff. Developer China Overseas Land fell 3.1% to HK$21.60, container port operator Cosco Pacific fell 4.7% to HK$11.66, the country's second-largest lender China Construction Bank fell 2.7% to HK$6.20 and its largest insurer China Life fell 2.0% to HK$22.10. Overall, 49 of 50 blue chips ended lower. In China, the Shanghai Composite Index fell for a fifth session to end at a two-month low. http://www.finet.hk/mainsite/newscenter/DJPUBLIC/40942.html