Stocks decline on funding concerns
Hong Kong stocks fell, with the benchmark index headed for its steepest drop in a week, as higher funding costs on the mainland weighed on sentiment. Lenders and property developers declined. China Construction Bank Corp, the nation’s secondlargest lender, slumped 1.7 percent. Hang Lung Properties Ltd, a Hong Kong-based developer that invests in mainland shopping malls, dropped 4.6 percent on concern the US Federal Reserve’s decision to trim stimulus will lead to higher interest rates. The Hang Seng Index dropped 1.1 percent to 22,888.75 at the close in Hong Kong, its biggest decline since Dec 11. About seven stocks fell for each that gained on the 50-member gauge amid volume 23 percent higher than the 30-day average. The Hang Seng China Enterprises Index, also known as the H-share index, retreated 1.7 percent to 10,777.91. The gauge is less than 1 percent away from erasing its gains since the mainland’s detailed reform measures were announced on Nov 15.