Shares in Hong Kong and mainland China declined in the morning session amid cautiousness ahead of a widely telegraphed interest rate increase by the US Federal Reserve, as well as the corresponding move by the Hong Kong Monetary Authority.
The Hang Seng Index fell 66.10 points, or by 0.3 per cent, to 25,785, while the Hang Seng China Enterprises Index dropped 29.08, or by 0.3 per cent, to 10,496.66. In mainland exchanges, the CSI 300 Index dropped 36.82, or by 1 per cent, to 3,545.44, while declines were recorded on both the Shanghai and Shenzhen bourses.
“The markets are digesting a fair bit of information and anticipating the Fed,” said Brett McGonegal, the chairman and chief executive of Capital Link Investment Holdings. “It makes sense after Friday’s tech wreck in the US and waiting on Mrs Yellen that the markets move cautiously while all the information is being processed.”
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A trader puts on his jacket as he leaves the floor of the stock exchange for lunch. Photo: AFP PHOTO
The shares of companies linked to Anbang Insurance plunged, after the insurer -- one of China’s biggest acquirers of assets -- confirmed that its chairman Wu Xiaohui had not reported for work. The executive may have been detained for investigations into irregularities at the company, the Caixin media organisation reported yesterday, before deleting the report.
Shares of Gemdale Corp., a property developer that’s 20 per cent owned by Anbang, fell as much as 3.8 per cent to 10.63 yuan in Shanghai. Beijing Tongrentang Co., one of China’s oldest herbalists and 8.3 per cent owned by Anbang, fell as much as 2.8 per cent to 32.80 yuan.
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The stocks of several publicly traded ports operating in Liaoning province rose, after a report of China Merchants Ports consolidating their operations under one structure. China Merchants rose as much as 1.9 per cent in Hong Kong to HK$21.85.
Shares of Dalian Port jumped as much as 20.7 per cent in Hong Kong to an intraday high of HK$1.63, the highest since August 12th, and advanced almost 10 per cent on the Shanghai exchange to 3.20 yuan. Yingkou Port Liability Co., which manages the harbour in the northeastern Chinese city, jumped as much as 9.4 per cent to 3.71 yuan, while Jinzhou Port advanced 10 per cent to 4.61 yuan on the Shanghai bourse.
