Bloomberg News

Hong Kong Stocks Drop for Fourth Day on China, Europe Concerns

November 18, 2011

Nov. 18 (Bloomberg) -- Hong Kong stocks fell for fourth day, with the benchmark index heading for its lowest close in a month, as a Chinese regulator warned loans to developers may sour and a surge in Spanish bond yields stoked concern Europe’s debt crisis won’t be contained.

HSBC Holdings Plc, Europe’s biggest lender, decreased 2.5 percent amid concern contagion from Europe will affect the global financial system. China Overseas Land & Investment Ltd., the biggest mainland developer listed in Hong Kong, slid 4 percent after China’s banking regulator told lenders to cut “high-risk” loans to developers. Jiangxi Copper Co., China’s biggest producer of the metal, fell 2.3 percent as copper futures declined for a second day.

“The emphasis among investors is to preserve capital,” said Andrew Sullivan, principal sales trader at Piper Jaffray Asia Securities Ltd. in Hong Kong. “There won’t be a quick solution to Europe’s crisis as debts take a long time to pay off. Stocks could revisit the October lows.”

The Hang Seng Index fell 2.1 percent to 18,427.38 as of 9:48 a.m. in Hong Kong, heading for its lowest close since Oct. 21. About 10 stocks dropped for each that rose in the 46-member benchmark index. The gauge is poised for its third-straight weekly decline amid speculation Italy would have to seek a bailout as bond yields surged above 7 percent.

The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong sank 3 percent to 9,926.89.

--Editor: Jim Powell.

To contact the reporter on this story: Jonathan Burgos in Singapore at

To contact the editor responsible for this story: Nick Gentle at

The Aging of Abercrombie & Fitch
blog comments powered by Disqus