Property pushes Hang Seng back as CCP requires officials to declare houses
Hong Kong stocks slipped back after setting new highs for the year last week. The drop was led by property shares, after the Communist Party of China required high-ranking officials to disclose their property portfolios. Mainland markets finished slightly up, recovering from early losses, as retailers led rises in anticipation of the eight-day national holiday.
The Shanghai Comprehensive Index climbed 0.15 percent to 2967.01. The Small and Medium Enterprises Index added 1.78 percent to 4847.41. The Hang Seng Index declined 0.70 percent to 21472.825. The Hang Seng Growth Enterprises Index slid 0.54percent to 656.80. The China Enterprises Index dropped 1.56 percent to 12418.34.
Taiwan's TAIEX Index slid 0.32 percent to 7502.46.
Mainland-listed developers lost 0.62 percent on average and the Hang Sang Property Index declined 1.35 percent, after the Communist Party of China (CPC) asked its high-ranking members to disclose all housing and business dealing Saturday.
Leading officials within the CPC will soon have to declare all assets and investments, as well as details on their family, as part of anti-graft measures to curb corruption. High-ranking members will be ordered to disclose all housing and business dealings, along with the jobs of their spouses and children.
Corrupt officials are notorious for owning many houses. More than 880,000 officials were punished for misconduct between July 2003 and December last year, according to the CPC's Central Commission for Discipline Inspection.
Yin Guoyuan, former vice director of Shanghai's Real Estate Management Bureau, was revealed to be the owner of 30. He was given the death sentence with a two-year reprieve for bribery after his superior - former Shanghai Party chief,Chen Liangyu - was removed from his post and sentenced to 18 years in prison in 2007.
China Vanke Co. (SZ:000002), the largest mainland-listed developer, dropped 1.14 percent. Poly Real Estate Group Co.(SH:600048), the second-largest, lost 1.80 percent. Sun Hung Kai Properties (HK:0016), the world's biggest developer by market value, declined 1.65 percent.Wah Ha Realty Co.(HK:0278) plunged 7.49 percent. Shui On Land (HK:0272) dropped 4.25 percent.
Mainland-listed retailers gained 3.47 percent on average as the first eight-day National Day holiday approaches. Excitement about the holiday rose after China's air-force staged a practice flyover over Beijing's central business district this morning.
Beijing's retailers were the biggest winners. Beijing Xidan Department Store Co. (SH:600723) and Beijing Urban-rural Trade Center Co.(SH:600861), two of the capital city's leading retailers, surged to the 10 percent trading cap.
Travellers are expected to swam into Beijing during the longest National Day holiday in China's history. Beijing Wangfujing Department Store(SH:600859) climbed 9.58 percent. Shanghai Bailian Group Co.(SH:600631), China's largest retailer, gained 6.73 percent.
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