Hang Seng 1-Year, Shanghai 18-Month Lows

123jump.com Staff
18 Aug, 2008
New York City

Hong Kong stock indexes dropped to its low for the year as financial stocks declined after the China Securities and Regulatory Commission

[R]6:00AM New York, 6:00PM Hong Kong- Investment in China real estate rises 31% to Rmb1.58 trillion in first half of this year.[/R]

Hong Kong stock indexes fell the most in a year as financial stocks negatively impacted on today’s trading after the China Securities and Regulatory Commission’s pledge to stabilize the market failed to appease investors.

Market Sentiment

In Hong Kong trading Hang Seng Index fell 1.09% or 229.91 to 20,930.67, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, slumped 1.82% or 203.83 to 10,966.37. In Shanghai trading CSI 300 Index shed 5.48% or 134.21 to 2,313.40.

Daily turnover on main-board was HK$45.2 billion from HK$49 billion on Friday last week.

Investment in China’s Real Estate Rises 30.9%

The National Bureau of Statistics reported on its Web site today that national real estate climate index dropped 0.72 points from a month earlier and declined 1.64 points from a year ago to 102.36 in July, while the investment index of real estate development fell 0.02 from June and 1.36 down from a year ago to 104.77.

Aggregate investment in real estate development gained 30.9% to Rmb1.58 trillion in the January-July period and investment in residential buildings also jumped 33.7% to Rmb1.14 trillion also in the same period.

NBS noted that completed investment in economically affordable housings increased 25.2% to Rmb45.9 billion.

From January to July, the position fund of real estate development enterprises rose 19.1% year-on-year to Rmb2.2 trillion, of which domestic loans, utilization of foreign investment and self-rising funds increased to Rmb457 billion, Rmb40.7 billion and Rmb869 billion in that order.

According to the bureau, in the seven months to July land space developed for real estate development enterprises increased by 4.2% to 148 million square meters from the comparable period a year earlier.

Also by the end of July, the vacant floor space of commercial buildings rose 6.1% year-on-year to 129 million square meters, of which vacant floor space for residential housings advanced 4.6% to 65.38 million square meters, while vacant space for office buildings and houses for business use edged up 7.7% to 8.14 million square meters and 3.6% to 39.90 million square meters correspondingly.

Gainers & Losers

Financial stocks fell after comments by the China Securities and Regulatory Commission that it will heighten efforts to stabilise the market by enforcing restrictions on large-lot sales of shares freed up by the lapse of lock up periods failed to address concerns of the market. China Life tumbled 1.5% and the ICBC declined 1.4%.

Coal miners fell after China increased export taxes on coke, coking coal and thermal coal. China Shenhua Energy shed 2.5%, China Coal Energy tumbled 4.3% and Yanzhou Coal fell 3.2%.

Realty stocks were active with Hutchison Whampoa rising 2.2%, but Cheung Kong Holdings declining 1.5%. Sino Land fell 4.9% and New World Development climbed down 6.3%.

Hong Kong Exchanges & Clearing slid 3.3% on bearish outlook of this year’s financial performance.

Foxconn International Holdings plunged 24% after the handset manufacturer cautioned that interim profit might fall markedly.

Anhui Conch Cement after Morgan Stanley cut its price target on the stock.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 146.04 or 1.12% to 13,165.45, Hang Seng index in Hong Kong decreased 229.91 or 1.09% closed to 20,930.67. ASX 200 index in Australia increased 3.30 or 0.07% to close 4,985.00. The KL Composite index in Malaysia decreased 10.69 or 0.98% closed to 1,084.36.

The Kospi Index in South Korea decreased 4.48 or 0.28% to close at 1,567.71, SET index in Thailand closed lower 10.25 or 1.45% to 697.23 The Sensex index in India decreased 78.52 or 0.53% closed to 14,645.66. Markets of Indonesia were closed today.