China markets down on profit taking and crude oil drop
China markets dropped as the price of crude oil fell and investors took profits on recent rises. The Shanghai Comprehensive Index declined 0.5 percent to 3070.59. The Hang Seng Index slid 0.3 percent to 22318.11. The Hang Seng China Enterprises Index, representing large mainland companies listed in Hong Kong, slid 0.3 percent to 13001.59.
Taiwan's TAIEX Index lost 0.67 percent to 7701.50.
Petrochina (SHA:601857, HKG:0857) fell 0.8 percent in Shanghai and 0.4 percent in Hong Kong. Sinpoec (SHA:600028, HKG:0386) fell 0.6 percent in Shanghai and 2.2 percent in Hong Kong.
China's largest electricity provider, Huaneng Power (HKG:0902, SHE:600011), surged 7.5 percent in Hong Kong and 3.2 percent in Shanghai after reporting a move into net profit in the third-quarter from increased output from new facilities, tariff rises and lower coal costs.
China's three telecom operators all fell. China Telecom (HKG:0728), China's largest fixed-line phone company, lost 1.8 percent after posting a 48 percent fall in quarterly profit as its fixed-line users continued to migrate to competitor's mobile services. China Mobile Ltd. (HKG:0941) dropped 1.9 percent. China Unicom (SHA:600050, HKG:0762) fell 1.2 percent in Shanghai and 0.5 percent in Hong Kong.
Gold prices dropped below $1,060 per ounce overnight as the dollar made gains from what was its weakest level in 14 months against the euro. Shandong Gold (SHE:600547) dropped 3 percent. Zijin Mining (SHA:601899, HKG:2899) fell 2 percent in Hong Kong but rose 0.5 percent in Hong Kong. Futures brokers and stocks brokers advanced. 000996 600107 600128
Brokers said asset revaluations in the wake of the weak U.S. dollar had made local and China property stocks appealing. Minsheng Bank (SHE:600016), rose 2.4 percent after announcing it would earn a net profit of at least RMB11bn in 2009. Sinolink Securities Co., Ltd. (SHA:600109) was up 5.7 percent. Hong Yuan Securities Co., Ltd (SHE:000562) was up 3.9 percent.
Property shares continued to rise on yesterday's gains with mainland-listed developers rising 1 percent on average and the Hang Sang Property Index increasing 0.5 percent. Jingneng Property Co., Ltd. (SHA:600791), ShenYang Ingenious Development Co., Ltd (SHE:000511) and DongGuan Winnerway Industrial Zone Ltd. (SHE:000573) all surged to the 10 percent cap.
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