Hong Kong shares slip as CCB, Want Want sink after block deals
Hong Kong shares were lower at midday Wednesday, dragged down by weakness in China Construction Bank (CCB) and snack maker Want Want China after block sales of their shares hurt their sectors.
But shares of CCB shares were only off 2 per cent, compared to the up to 5 per cent discount offered by Bank of America as it ended an eight-year investment that yielded a paper profit of more than five times the original cost. Traders said this pointed to robust demand.
The Hang Seng Index, which rose the past four sessions, was down 0.4 per cent at midday to 22,308.4 points. The China Enterprises Index, which closed on Tuesday at its highest since June 6, fell 0.6 per cent.
The CSI300 of the leading Shanghai and Shenzhen A-share listings was down 0.1 per cent, while the Shanghai Composite Index was flat.
Of course, demand for the CCB placement was so robust ... The surprise here is that (Bank of America) is selling at such a low level
“Of course, demand for the CCB placement was so robust,” said Hong Hao, chief strategist at Bank of Communication (BoCom) International. “The surprise here is that (Bank of America) is selling at such a low level.”
Wednesday losses pulled CCB off Tuesday’s two-week closing high. Its H-share listing is now down 6.6 per cent on the year, compared to the 1.7 per cent loss on the Hang Seng benchmark and 10.9 per cent tumble on the China Enterprises Index.
