Hong Kong sinks while Shanghai held up by financials
Both mainland and Hong Kong markets retreated in line with world markets on the back of lower commodity prices and a bearish prediction of world output released by the world bank yesterday. But mainland markets rose back up after rumours circulated that China’s the central bank would cut the reserve ratio.
The Hang Seng index dropped 2.9 percent to a one-month low, while the Shanghai Comprehensive Index finished off just 0.12 percent down. The gap between mainland and Hong Kong markets hit a two and a half month high.
Bank of China (SH:601988, HK:3988) rose 6 percent in Shanghai, but fell 4.2 percent in Hong Kong where Chinese banks were actually amoung the greatest droppers, where analysts were skeptical there was any truth to the talk.
Commodity stocks took the largest blow. PetroChina declined 4.4 percent. CNOOC dropped 4.3 percent. Aluminum Corp of China was down 6.6 percent. Zhongyu Gas (HK:8070) fell 3.4 percent.
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