Stocks in HK Fall, Foreing Investors Withdraw

123jump.com Staff
17 Feb, 2009
New York City

The benchmark indexes in Hong Kong dropped 3.8% and in Shanghai declined 3.1% after foreign investors withdrew HK$500 million in January. Separately, China reported fiscal revenues in January declined 17.1% on similar decline in tax revenues. Hong Kong exports in December declined 13%.

[R]6:00AM New York, 6:00PM Hong Kong - Hong Kong Exchange Fund foreign assets decline by HK$500 million in January.[/R]

In Hong Kong trading Hang Seng Index fell 3.8% or 510.48 to 12,945.40, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, declined 4.9% or 367.22 to 7,193.33. In Shanghai CSI 300 Index dropped 3.1% or 76.95 to 2,385.29.

Daily turnover on main-board increased to HK$41.7 billion from HK$34.6 billion yesterday.

HK Exchange Fund Foreign Assets Drops

The Monetary Authority of Hong Kong reported yesterday that the Exchange Fund''s foreign assets fell by HK$500 million to HK$1.3 trillion in January from the previous month.

Monetary base rose to HK$541.5 billion comprising Certificates of Indebtedness, Government-issued currency notes and coins in circulation.

Claims on private sector rose to HK$160.1 billion.

China''s Fiscal Revenue Drops 17.1%

Ministry of Finance reported today that the country''s fiscal revenue dropped 17.1% to Rmb613.16 billion in January on falling economic growth and tax cuts that were effected to stimulate the economy.

The report also notes that working days dropped by 5 days because of the Spring Festival holiday.

Tax revenues plummeted 16.7% to Rmb563.9 billion from a month ago, while duty revenue dipped 19.3% and stamp tax contracted 95.7%. China lowered share trading stamp tax from 0.3% and 0.1% in April last year.

Fiscal revenue for the whole of 2008 increased 19.5% to Rmb6.13 trillion from the same period a year earlier.

Hong Kong Exports Decline 12.8% in December

Census and Statistics Department of Hong Kong said yesterday the value of total goods export and import dropped 12.8% and 17% year-on-year in December.

The volume of total good exports rose 2.9% and goods imports advanced 2.6%, while the volume of goods re-exports increased 4%.
According to the report, the price of total goods exports increased 3.5% and those of goods imports edged up 2.6%.

Gainers & Losers

Hong Kong stocks fell on worries over corporate earnings as the Bank of East Asia reported a larger than expected loss in the second half. However the stock rose 2.2% to HK$15.90.

China Mobile dropped 4.4% to HK$70.60 after Deutsche Bank downgraded its stock to ""hold"" from ""buy"" on increased competition from China Telecom. The telecommunications price estimate was also lowered to HK$72.30 from HK$103.40.

Energy stocks fell as crude oil prices remained below $37 per barrel. PetroChina dipped 6% to HK$6 and CNOOC fell 6.1%.

Financial stocks plunged. ICBC declined 5.3% to HK$3.37 and China Construction Bank tumbled 5.7% to HK$3.81.

Zijin Mining Group advanced 5.8% to HK$4.90 after the tax on its earnings was slashed from 25% to 15% on its reputable as a new and high technology enterprise.