Hong Kong Stocks Pullback After Largest Increase Since November
March 25, 2014 8:23 am
Hong stocks decline, with the city’s benchmark index retreating after its largest increase since November yesterday, as data revealed a slowdown in U.S. manufacturing development.
The Hang Seng Index pulled back 0.4 percent to 21,770.37 as of 10:05 a.m. in Hong Kong. The Hang Seng China Enterprises Index, also known as the H-share index, relinquished 0.2 percent to 9,678.97. The measure climbed 5.3 percent through yesterday since logging a 20 percent slump from a December peak on March 20. Hong Kong shares skyrocketed yesterday as data showing weakening China manufacturing fueled speculation the government would act to aid lift the economy.
“There’s profit-taking pressure because yesterday’s rise was driven by inflows of hot money,” said Francis Lun, chief executive officer of Geo Securities Ltd. “The slowdown in U.S. manufacturing data is adding another negative for the market.”
Tongda Group Holdings Ltd. dropped 5.5 percent after the maker of casings for notebook computers merchandised 600 million new shares. Yashili International Holdings Ltd. gave up 3.2 percent after the milk producer’s net income didn’t hit projections. Tingyi Holding Corp., a maker of instant noodles and beverages, led surges on the Hang Seng Index after UBS AG developed the stock further.
The H-share index missed 10 percent this year through yesterday as plunging down exports, weaker manufacturing and slower retail sales prompted bets China would miss its 7.5 percent development aim. The measure was worth at 1.1 times net assets, the largest discount since September 2003 to the MSCI All-Country World Index of developed and emerging shares, which had a ratio of 2.
Economic Development
The speed of economic development won’t go into a free-fall sag down and will stay in a tight range, the China Securities Journal stated in a commentary written by reporter Gu Xin. China may encounter “serious” cash-flow problems and needs good management of liquidity for the next two years, according to a transcript of former China Banking Regulatory Commission Chairman Liu Mingkang’s remarks in today’s Shanghai Securities News.
Futures on the Standard & Poor’s 500 Index bolstered 0.1 percent after the gauge slide down 0.5 percent yesterday. A Markit Economics Ltd. preliminary index of U.S. manufacturing backed down to 55.5 in March from 57.1 a month earlier, the London-based group said yesterday. Economists had expected a reading of 56.5, with a mark over 50 signalling expansion.
MSCI Inc. said its proposal to involve China’s mainland-exchanged shares in international indexes tracked by global fund managers may draw $12 billion. At least $8 billion would flow into the MSCI Emerging Markets Index, according to MSCI, surpassing Goldman Sachs Group Inc.’s projection of $4.4 billion.
Profits Season
Agricultural Bank of China Ltd., China Life Insurance Co., Cosco Pacific Ltd. and Air China Ltd. are among firms due to report results today. Of 141 firms on the Hang Seng Composite Index that displayed yearly profits this month and for which Bloomberg had projections, 51 percent topped earnings estimate. About 300 companies on the gauge are scheduled to release results in March, based from the data gathered by Bloomberg.
Chinese banks may begin preferred-share sales with more than 100 billion yuan($16 billion) offered by the biggest four lenders and Shanghai Pudong Development Bank, China Securities Journal reported, citing an unidentified person.
The world’s leading industrial powers threatened further penalties to obstruct Russia from invading other parts of Ukraine and boycotted what was to be a Group of Eight summit hosted by President Vladimir Putin. The Group of Seven leaders declared they won’t attend the planned G-8 assembly, which was to have been held in Sochi, the site of the Winter Olympics, and will instead hold their own summit in June at Brussels.
The material has been provided by InstaForex Company – www.instaforex.com
Hong stocks decline, with the city’s benchmark index retreating after its largest increase since November yesterday, as data revealed a slowdown in U.S. manufacturing development.
The Hang Seng Index pulled back 0.4 percent to 21,770.37 as of 10:05 a.m. in Hong Kong. The Hang Seng China Enterprises Index, also known as the H-share index, relinquished 0.2 percent to 9,678.97. The measure climbed 5.3 percent through yesterday since logging a 20 percent slump from a December peak on March 20. Hong Kong shares skyrocketed yesterday as data showing weakening China manufacturing fueled speculation the government would act to aid lift the economy.
“There’s profit-taking pressure because yesterday’s rise was driven by inflows of hot money,” said Francis Lun, chief executive officer of Geo Securities Ltd. “The slowdown in U.S. manufacturing data is adding another negative for the market.”
Tongda Group Holdings Ltd. dropped 5.5 percent after the maker of casings for notebook computers merchandised 600 million new shares. Yashili International Holdings Ltd. gave up 3.2 percent after the milk producer’s net income didn’t hit projections. Tingyi Holding Corp., a maker of instant noodles and beverages, led surges on the Hang Seng Index after UBS AG developed the stock further.
The H-share index missed 10 percent this year through yesterday as plunging down exports, weaker manufacturing and slower retail sales prompted bets China would miss its 7.5 percent development aim. The measure was worth at 1.1 times net assets, the largest discount since September 2003 to the MSCI All-Country World Index of developed and emerging shares, which had a ratio of 2.
Economic Development
The speed of economic development won’t go into a free-fall sag down and will stay in a tight range, the China Securities Journal stated in a commentary written by reporter Gu Xin. China may encounter “serious” cash-flow problems and needs good management of liquidity for the next two years, according to a transcript of former China Banking Regulatory Commission Chairman Liu Mingkang’s remarks in today’s Shanghai Securities News.
Futures on the Standard & Poor’s 500 Index bolstered 0.1 percent after the gauge slide down 0.5 percent yesterday. A Markit Economics Ltd. preliminary index of U.S. manufacturing backed down to 55.5 in March from 57.1 a month earlier, the London-based group said yesterday. Economists had expected a reading of 56.5, with a mark over 50 signalling expansion.
MSCI Inc. said its proposal to involve China’s mainland-exchanged shares in international indexes tracked by global fund managers may draw $12 billion. At least $8 billion would flow into the MSCI Emerging Markets Index, according to MSCI, surpassing Goldman Sachs Group Inc.’s projection of $4.4 billion.
Profits Season
Agricultural Bank of China Ltd., China Life Insurance Co., Cosco Pacific Ltd. and Air China Ltd. are among firms due to report results today. Of 141 firms on the Hang Seng Composite Index that displayed yearly profits this month and for which Bloomberg had projections, 51 percent topped earnings estimate. About 300 companies on the gauge are scheduled to release results in March, based from the data gathered by Bloomberg.
Chinese banks may begin preferred-share sales with more than 100 billion yuan($16 billion) offered by the biggest four lenders and Shanghai Pudong Development Bank, China Securities Journal reported, citing an unidentified person.
The world’s leading industrial powers threatened further penalties to obstruct Russia from invading other parts of Ukraine and boycotted what was to be a Group of Eight summit hosted by President Vladimir Putin. The Group of Seven leaders declared they won’t attend the planned G-8 assembly, which was to have been held in Sochi, the site of the Winter Olympics, and will instead hold their own summit in June at Brussels.
The material has been provided by InstaForex Company – www.instaforex.com
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