China H Shares re­treat in sell­off

China Daily (Hong Kong) - - BUSINESS - By BLOOMBERG

Chi­nese main­land stocks in Hong Kong fell to a onemonth low, led by con­struc­tion firms and in­sur­ers, amid con­cern gov­ern­ment ef­forts to con­tain prop­erty bub­bles and curb cap­i­tal out­flows will hurt earn­ings growth.

The Hang Seng China En­ter­prises In­dex dropped 1 per­cent to 9,377.43 at the close. China Vanke Co tum­bled 3.2 per­cent in Hong Kong af­ter the com­pany scrapped a plan to buy as­sets from Shen­zhen’s metro operator and the pace of new home-price in­creases slowed. China Taip­ing In­sur­ance Hold­ings Co sank 4.2 per­cent, while Ping An In­sur­ance Group Co dropped 1.7 per­cent. Chi­nese main­land res­i­dents buy­ing in­sur­ance in Hong Kong will no longer be able to swipe their credit cards mul­ti­ple times to get around curbs, ac­cord­ing to peo­ple with knowl­edge of the mat­ter.

The Shang­hai Com­pos­ite In­dex lost 0.2 per­cent.

China’s lead­ers vowed on Fri­day to safe­guard the fi­nan­cial sys­tem and de­flate as­set bub­bles, with one gov­ern­ment of­fi­cial say­ing the gov­ern­ment will “strictly” con­trol spec­u­la­tion and rein in ex­ces­sive cor­po­rate bor- row­ing. The na­tion’s fi­nan­cial mar­kets have taken a bat­ter­ing as surg­ing mon­ey­mar­ket rates re­duced in­vestor de­mand, with the Shang­hai Com­pos­ite sink­ing the most in eight months last week and bonds tum­bling the most in two years.

“Pol­icy mak­ers are mak­ing clear that they’re de­ter­mined to clamp down on spec­u­la­tion and will keep do­ing so next year,” said Wen Bin, chief re­search an­a­lyst at China Min­sheng Bank­ing Corp in Bei­jing.

The Hang Seng In­dex dropped 0.9 per­cent, while the Shen­zhen Com­pos­ite In­dex slipped 0.4 per­cent.

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