China Indexes Track Global Losses, BoC Drops

Mayank Mehta
05 Feb, 2010
New York City

Stocks in Shanghai and Hong Kong declined for the third week in a row as global markets drop for the fourth week in a row. Weak commodities dragged resource linked stocks. Bank of Communications declined on the prospect of stock offering.

[R]9:00 PM Hong Kong, China – Stocks in Shanghai and Hong Kong declined for the third week in a row as global markets drop for the fourth week in a row. Weak commodities dragged resource linked stocks. Bank of Communications declined on the prospect of stock offering.[/R]

The benchmark indexes in Shanghai and Hong Kong declined sharply tracking losses in global markets. An increase in U.S. jobless claims last week dashed the hopes of global economic recovery. Also, investors worried that growing budget deficits in Spain, Greece and Portugal will crimp the demand in Europe.

Hang Seng index in Hong Kong plunged 676.56 or 3.33% to 19,665.08, and CSI 300 index in China lower 65.72 or 2.04% to 3,153.09. The Shanghai index has fallen 10% in the year so far.

Resource stocks led the decliners in trading. Copper and gold fell more than 4% in New York and London trading. Jiangxi Copper Co. declined 3.5%, Chalco dropped 3% and Zijin Mining Group retreated 2.4%.

Shanghai Movers

Bank of Beijing Co., Ltd decreased 1.2% to 15.63 yuan and the bank plan to take stake in a joint venture with ING Groep NV, the commercial lender said today.

Bank of Communications Co., Ltd declined 1.4% to 8.15 yuan and China''s Ministry of Finance is considering injecting money into the lender to consolidate its position as the largest shareholder according to China Business News.

HK Movers

Angang Steel Company Limited decreased 5.8% to HK$13.28 after the company’s stock was upgraded to “equalweight” from “underweight” at Morgan Stanley.

BOC Hong Kong (Holdings) Limited fell 2.0% to HK$17.10 after The Hong Kong-traded unit of Bank of China Ltd completed the sale of $1.6 billion 10-year bond that yielded 5.5%.

Hopewell Holdings Limited rose 0.2% to HK$22.65 and the property company declared interim dividend.