China markets down, Hong Kong drops to seven-week low
Chinese markets declined, led by mining and financial shares, with the Hang Seng Index dropping by 2.56 percent – the most in three weeks – to its lowest point in seven weeks.
The Shanghai Comprehensive Index dropped 1.07 percent to 3080.56. Small caps rose slightly, with the SME Comprehensive Index added 0.96 percent to 4610.92. The Hang Seng Growth Enterprises Index slid 0.33 percent to 571.32. The Hang Seng China Enterprise Index lost 2.79 percent to 10279.65. Taiwan’s TAIEX Index dropped 3.53 percent to 6530.82.
PetroChina Co.(SH:601857; HK:0857), China’s largest oil producer and largest listed company, dropped 0.89 percent on Shanghai trading and 3.53 percent on Hong Kong trading.
China Shenhua Energy Co. (SH:601088; HK:1088), the nation’s largest coal miner, declined 3.81 percent on Shanghai and 3.07 percent on Hong Kong.
Jiangxi Copper Co. (SH:600362;HK:0358), the nation’s largest producer of the metal, retreated 3.94 percent on Shanghai and 1.96 percent on Hong Kong.
Aluminum Co. of China (SH:601600; HK:2600) lost 2.01 percent on Shanghai and 3.04 percent on Hong Kong.
Industrial and Commercial Bank of China (SH:601398;HK:1398), China’s largest lender and second-largest listed company, lost 1.53 percent on Shanghai and 2.77 percent on Hong Kong.
Brokerage shares dropped on profit taking. Northeast Securities (SZ:000686) dropped 4.47 percent after gaining 46.32 percent in the previous 9 trading days. CITIC Securities Co. (SH:600030), China’s largest brokerage, lost 3.64 percent.
China Eastern and Shanghai Airlines surge on news of merger
China Eastern Airlines Co. (SH:600115; HK:0670) advanced 5.07 percent on Shanghai trading and 2.87 percent on Hong Kong trading on its first trading day since June 5th. The company announced late Sunday that it will merge with Shanghai Airlines (SH:600591) through a shares swap in a deal valued at RMB8.9bn (US$1.3 billion).
Property weighs heavily on Hong Kong
Hong Kong-listed developers dropped, led by China Aoyuan.
The Hang Seng Property Index dropped 2.87 percent to 22560.10, the lowest since May 25. China Aoyuan Property Group (HK:3883) plunged 14.21 percent to HK$1.69, after announcing the issuance of 360 million new shares at prices ranging from HK$1.73 to HK$1.79.
China Properties Investment Holdings (HK:0736) dropped 7.41 percent. Hengli Properties Development (HK:0169) lost 6.06 percent. Beijing Capital Land (HK:2868) declined 5.95 percent.
On mainland markets, China Vanke Co. (SZ:000002), the largest developer, declined 1.61 percent. Poly Real Estate Group Co.(SH:600048), the second-largest, dropped 3.69 percent. Zhejiang Xinhu Investment Co.(SH:600840) lost 4.91 percent.
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