Blue chips pull Hong Kong higher as Shanghai drops with energy and steel shares
Blue-chips dragged the Shanghai bourse down today despite boosting the Hong Kong market, dragging the Shanghai Comprehensive Index to a two-week low and helping the Hang Sang Index snap declines in previous two days.
The Shanghai Comprehensive Index declined 2.34 percent to 2897.55. The Small and Medium Enterprises Comprehensive Index lost 1.55 percent to 4772.10. The Hang Seng Index climbed 1.06 percent to 21701.14. The Hang Seng Growth Enterprises Index gained 0.70 percent to 661.41. The Hang Seng China Enterprises Index climbed 0.75 percent to 12511.55.
Taiwan's TAIEX Index slid 0.45 percent to 7469.03.
Energy players led the falls in Shanghai, following the overnight drop in crude oil prices. PetroChina Co.(SH:601857; HK:0857), the world's most valuable company, lost 2.18 percent in Shanghai but gained 1.41 percent in Hong Kong. Sinopec (SH:600028; HK:0386), Asia's largest refinery, plunged 3.16 percent in Shanghai but climbed 0.59 percent in Hong Kong. China Shenhua Energy Co.(SH:601088; HK:1088), the nation's largest coal producer, dropped 3.97 percent in Shanghai and 0.72 percent in Hong Kong.
Finance shares also made significant moves. Industrial and Commercial Bank of China (SH:601398; HK:1398), world's largest lender, declined 0.80 percent in Shanghai but advanced 1.50 percent in Hong Kong. Bank of China (SH:601988; HK:3988), the second-largest, dropped 1.52 percent in Shanghai but climbed 0.93 percent in Hong Kong. China Life Insurance Co.(SH:601628; HK:2628), the nation's largest insurer, declined 1.66 percent in Shanghai but advanced 1.97 percent in Hong Kong.
Steel shares were depressed following the announcement that Hebei Iron and Steel Group, the world's fourth-largest steel maker, had been given regulatory approval to combine as part of the governments program to tackle overcapacity in the inudtry. The new company will become the country's second largest listed steel maker.
Tangshan Iron & Steel Co. (SZ:000709), the largest of the three sister companies, lost 7.5 percent, while Handan Iron & Steel Co. (SH:600001) dropped 5.86 and Chengde Xinxin Vanadium and Titanium Co., (SH:600357) plunged 6.65 percent.
Others steel players also dropped as investors betrayed a lack of confidence in government led consolidation in the industry.
Baoshan Iron & Steel Co. (SH:600019), China's biggest steelmaker, slid 4.20 percent. Chongqing Iron and SteelCo.(SH:601005;HK:1053) lost 3.61 percent in Shanghai and 3.19 percent in Hong Kong.
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