Hong Kong Stocks Drop as Cyprus Concern Overshadows China Data

Hong Kong Stocks Drop as Cyprus Concern Overshadows China Data

Bloomberg, (21/3) -- Hong Kong stocks fell, with the city’s benchmark index heading for a second week of decline, as concern that financial woes in Cyprus might reignite Europe’s debt crisis overshadowed a report China’s manufacturing is expanding at a faster pace. Esprit Holdings Ltd., a Hong Kong-based that’s most dependent Europe, slid 2.2 percent as Cyprus President Nicos Anastasiades sought a new bailout plan. Tencent Holdings Ltd., China’s biggest Internet company, sank 4 percent after analysts from Goldman Sachs Group Inc. and JPMorgan Chase & Co. cut their price targets. Chow Tai Fook Jewellery Group Ltd., the world’s biggest jeweler by market value, added 1.9 percent after Barclays Plc said sales will improve. The Hang Seng Index slipped 0.1 percent to 22,225.88 at the close, erasing an advance of as much as 0.7 percent. The Hang Seng China Enterprises Index dropped 0.3 percent to 10,944.35, after gaining as much as 1.2 percent. The gauges jumped earlier today as a Chinese Purchasing Managers’ Index expanded faster than analyst estimates. “While the China PMI lifted the market earlier, it seems the Cyprus situation is continuing to drag market sentiment,” said Jackson Wong, vice president at Hong Kong-based brokerage Tanrich Securities Co. “Investors are probably waiting for the Cyprus situation to be resolved. We’re still in a consolidation phase.”