Hang Seng Index Down 2%; Shanghai Index Up 1.6%

Nigel Thomas
10 Feb, 2011
New York City

Stocks in Hong Kong closed sharply lower as investors pull money out of Asia. Hong Stock Exchange declined 5% on heavy volume on the worries that trading volume will fall further. The benchmark index in Hong Kong fell 2% but in Shanghai rose 1.6%.

[R]5:00 Hong Kong – Stocks in Hong Kong closed sharply lower as investors pull money out of Asia. Hong Stock Exchange declined 5% on heavy volume on the worries that trading volume will fall further. The benchmark index in Hong Kong fell 2% but in Shanghai rose 1.6%.[/R]

Stocks in Shanghai rose on the strength in property stocks and banks. The benchmark Shanghai Composite Index increased 44.10 or 1.6% to 2,818.20.

Stocks in Hong Kong declined 1.97% to 22,709.44 and trading turnover in the session as HK$97.69 billion. Hang Seng Enterprise Index declined 256 or 2.08% to close at 12,022.60.

Hong Kong Exchanges and Clearing Ltd fell 4.9% to HK$167.70 on seven times higher than the average volume.

The exchange reported short selling volume rose to the highest since November as a percentage of total trading volume and as the volume picked up in the last five days of trading but most of it is on the sell tick indicating investors prefer to sell as prices decline.

Stock Movers

SAIC Motor Corp surged 10% after other automaker reported strong increase in auto sales. Jiangling Motors soared 10% after January sales increased 40% and General Motors Co sale rose 22.3% to 268,071 units.

Zhenjiang Gantai Holding soared daily limit of 10% and Meidu Holding gained 6.6%.

Agriculture company WanXiang Doneed gained daily limit of 10% but Anhui Water declined 5.4% and high speed rail operator CSR Corp declined 2.8%.

Banks in Shanghai trading closed mixed. China Life Insurance Co gained 1.4% to 21.30 yuan and China Construction Bank fell 1.7% to 17.26 yuan.

HSBC declined 0.45% to HK$89.30 and Han Seng dropped 2.4% to HK$125.50.

China Construction Bank declined 2.2% to HK$6.56 and ICBC declined 1.4% to HK$5.74. Agriculture Bank of China declined 1.8% to HK3.64. Bank of China dropped 1.3% to HK$3.91.

PetroChina dropped 3.1% to HK$10.22 and offshore oil explorer declined 1.8% to HK$16.12.

Hong Kong developers were on the decline. Cheung Kong Holding fell 3.3% to HK$121.40 and Henderson Land fell 2.4% to HK$49.80.

Xingye Copper International Group Ltd dropped 17% after the copper plate maker estimated a “significant” drop in 2010 profit.