Market Open: Hong Kong stocks may fall on China slowdown concern

Hong Kong stocks may fall further on Friday on concern that policy makers may not offer much leeway in adjusting monetary policy while property curbs may be introduced in more Chinese cities which would dampen growth in the world’s second largest economy.

State-owned newspaper China Securities Journal said in an editorial on Friday that China should not further loosen its monetary policy in case of asset bubbles. Pork prices could rebound from the first half of next year, which may bring new price pressured, the paper said.

Separately, the Securities Times reported that officials from the Shanghai and Shenzhen exchanges are visiting global investors in Europe, the US and Japan to persuade them to invest in the A-share market. It cited unnamed sources.

Overnight, the Standard & Poor’s 500-stock index closed down 0.79 points, or 0.05 per cent, to close at 1,460.26. The Nasdaq Composite shed 6.66 points, or 0.21 per cent, to finish at 3,175.96. In London, the FTSE-100 Index lost 33.84 points, or 0.57 per cent, to end at 5854.64.

Hot Stocks of the day:

Chinese property developers

China will probably extend a property tax scheme, which is currently now only being implemented in Shanghai and Chongqing, at the end of this year or early in 2013, The Securities Times reported on Friday, citing an official from the national tax bureau. Mainland developers including China Overseas (0688.HK) will be affected.

CNOOC (0883.HK)

Nexen Inc shareholders overwhelmingly approved the oil producer’s takeover by China’s CNOOC on Thursday, according to the company’s website. The deal is valued at US$15.1 billion, marking it the largest take-over bid by a Chinese firm in an outbound investment.

Modern Education (1082.HK)

The secondary tutorial service provider said late on Thursday that net first-half profit grew to HK$31.16 million from HK$20.54 million.

Fantasia Holdings Group (1777.HK)

The Chinese developer announced on Thursday that it would offer a hefty 13.75-per cent yield on US dollar senior notes carrying a five-year maturity to raise US$250 million.

Pacific Basin Shipping (2343.HK)

The company which specializes in small cargo ships, plans to raise up to $131 million in convertible bonds due 2018, according to terms of the deal seen by Reuters on Thursday.

Li & Fung (0494.HK)

The largest supplier of clothes and toys to retailers said it has signed a new agreement to provide design and replenishment services to Wal-Mart Stores. The agreement is part of a new agency contract that will supersede a previous one signed in January 2010.