China Daily Global Edition (USA)
ChinaHShares retreat in selloff
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 borrowing. 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,” saidWen 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.