Market Open: Hong Kong may dip on share placements, earnings fears
The Hong Kong stock market faces mounting selling pressure, with investors cautious about adding new positions and some even starting to sell down key blue-chip stocks to cash in on accumulated profits after the index's 22 per cent rally since last September.
Earnings jitters are also limiting upside for the index. Gome (0493.HK), China’s second-biggest home appliance retail chain, said it expects to post a full-year loss for 2012, hit by rising rents and also by its loss-making e-commerce business.
ICBC (1398.HK) will also be in the spotlight after an overnight term sheet showed that Goldman Saches is selling US$1 billion worth of its Hong Kong shares to take advantage of recent gains in price. The US firm is selling ICBC at HK$5.77 apiece, representing a three per cent discount to Monday’s close.
On the policy side, 15 Banks in Hong Kong were granted permission yesterday to offer a combined 2 billion yuan in loans to companies in Qianhai. The batch includes HSBC (0005.HK), Standard Chartered (2888.HK), as well as the Hong Kong arms of mainland lenders such as ICBC and China Construction Bank (0939.HK), and Hong Kong-owned banks like Bank of East Asia (0023.HK) and Wing Lung Bank (0096.HK).