Bloomberg News

BOC Hong Kong, Wing Hang Lead Rivals Lower on Europe Contagion

October 04, 2011

Oct. 4 (Bloomberg) -- BOC Hong Kong (Holdings) Ltd. and Wing Hang Bank Ltd. led declines among lenders in Hong Kong trading on concern that contagion from Europe’s debt crisis may spill over to Asia and hinder growth.

BOC Hong Kong, a unit of Bank of China Ltd., fell 7.3 percent, its steepest slide in almost three years, to close at HK$14.52. Wing Hang Bank dropped 7.9 percent to HK$56.15, the lowest in more than two years.

Hong Kong stocks fell for a fourth day amid waning optimism that European policy makers will resolve the region’s debt crisis. The city’s benchmark Hang Seng Index, which has slumped 29 percent this year, fell 3.4 percent today.

“The worsening European crisis is adding to investors’ concerns,” Ivan Li, deputy head of research at Kim Eng Securities Hong Kong Ltd., said by telephone today. “Investors are worried about the spillover effects on the lenders.”

--Editors: Russell Ward, Chitra Somayaji

To contact the reporter on this story: Stephanie Tong in Hong Kong at stong17@bloomberg.net

To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net


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