It took the full weight of HSBC to limit heavier losses in Hong Kong stocks yesterday as fund-raising activities in the property sector prompted profit taking.
The Hang Seng Index fell 27.67 points or 0.23 per cent to close at 11,768.31. Turnover was a healthy HK$11.82 billion.
'The buying interest was mainly on HSBC. Property stocks were quite weak as the market worries about more fund-raising activities,' said Kenny Tang Sing-hing, an associate director at Tung Tai Securities.
HSBC, which has lagged the market in the current rally, added 34 points to the index as it climbed 1.05 per cent.
Property stocks fell heavily after Sino Land said it had raised about US$1.5 billion through a convertible bond issue. The counter dived 8.63 per cent.
Because convertibles are effectively a call option on the underlying stocks, investors who specialise in trading them hedge their holdings by shorting the stock. A fall in the share price is also normal because if converted, the derivatives will dilute the share base.
