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Hong Kong shares drop 1 percent, China's credit tightening hurts sentiment

Hong Kong shares drop 1 percent, China's credit tightening hurts sentiment

Hong Kong shares dropped 1 percent Monday, weighed down by concerns that Beijing may step up efforts to cool its booming economy after it announced new credit tightening measures over the weekend.
The blue-chip Hang Seng Index fell 207.52 point to 20,318.98 points.
Investors sold Hong Kong stocks after China's central bank said Sunday it will raise banks' reserve requirement ratio by another half percentage point to 11 percent for most commercial banks.
The move, which comes after stronger-than-expected first-quarter economic growth, is the seventh increase within a year.
Investors worry that Beijing could roll out more measures, including interest rate hikes, in the coming weeks to contain rising inflationary pressures and slow growth from the first quarter's blistering pace.
Hong Kong's financial market will be closed Tuesday for Labor Day.
Most blue chips fell. China Mobile declined 1 percent to HK$71.45. Rival China Unicom dropped 1.9 percent to HK$11.48 while China Netcom plunged 2.6 percent to HK$19.36.
Major Chinese banks also slipped. Traders said banks fell on worries that the reserve ratio hike may slow lending growth.
ICBC fell 1.2 percent to HK$4.29 while China Construction Bank dropped 1.2 percent to HK$4.78.
Bank of China dipped 0.8 percent to HK$3.88.
Blue-chip developer Henderson Land bucked the downward trend, advancing 1.5 percent higher to HK$47.05 after local newspaper Hong Kong Economic Times quoted Chairman Lee Shau-kee as saying the company will double its land bank in China.
Chinese aluminum producer Chalco's Hong Kong-listed shares edged up 0.4 percent to HK$9.29, tracking the strong debut of its shares in Shanghai.
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On the Net:
Hong Kong stock exchange official Web site:
http://www.hkex.com.hk


Updated : 2021-01-28 04:20 GMT+08:00