China markets mixed as retailers rise and Hang Seng drops
China’s property and bank shares retreated in Hong Kong and advanced on mainland markets. The Shanghai Comprehensive Index advanced 0.52 percent to 2768.34. The Hang Seng Index declined 2.28 percent to 18253.39.
Small caps, however, moved in the opposite directions. The mainland SME Comprehensive Index slid 0.80 percent to 4190.52. The Hang Seng Growth Enterprises Index advanced 0.97 percent to 575.43.
The Hang Seng China Enterprise Index lost 1.79 percent to 10667.88. Taiwan's TAIEX Index declined 3.34 percent to 6628.02.
Mainland’s financial shares advanced 4.3 percent on average while the Hang Sang Financial Index lost 2.15 percent.
Industrial and Commercial Bank of China (SH:601398;HK:1398), the world’s largest bank, advanced 3.8 percent on Shanghai trading but declined 1.02 percent on Hong Kong trading. Bank of China (SH:601988;HK:3988), gained 5.15 percent on Shanghai but lost 1.12 percent on Hong Kong.
China Minsheng Banking Co.(SH:600016) the nation’s first privately owned lender, rose 5.78 percent to RMB 7.69, the highest in more than a year, after announcing plans to sell as much as 15 percent of its enlarged share capital on the Hong Kong stock exchange for the first time.
HSBC (HK:0005), Europe’s biggest bank, dropped 2.66 percent.
The Hang Sang Property Index declined 3.89 percent while mainland listed developers added 2 percent on average.
Nobel prize-winning economist Paul Krugman said on Chinese television that China is cultivating a bigger property bubble while the rest of the world is trying to correct it.
Shimao Property Holdings Ltd. (HK:0813), the Chinese developer controlled by billionaire Xu Rongmao, dropped 4.93 percent. Sun Hung Kai Properties (HK:0016) declined 5.54 percent.
China Vanke Co.(SZ:000002), the mainland’s biggest listed property developer, climbed 4.70 percent after the company said it recently spent RMB 2.3 to acquire land. The developer also reported year-on-year increases of nearly 20 percent for its May revenue.
Poly Real Estate Group Co. (SH:600048), China’s second-largest developer, jumped 3.01 percent.
Good news for retail
Retail shares surged after a median of 34 economists polled by Reuters predicted that retail sales in May will have increased by 14.9 percent year-on-year in May, slightly higher than the 14.8 in April.
ChangChun Department JiTuan Store Company (SH:600856) and Beijing Xidan Market Company Limited (SH:600723) surged to the 10 percent trading cap. Dalian Friendship (Group) Co.,Ltd. (SZ:000679) advanced 5.74 percent. Tianjin Quanye Bazaar (Group) Company Limited（SH:600821）climbed 5.66 percent. Beijing Wangfujing Department Store (Group)Co.,Ltd. (SH:600859) added 3.51 percent.
In Hong Kong, Oriental Ginza Holdings Limited（HK:0996）surged 11.88 percent; China Investment Fund Co., Ltd（HK:0162）advanced 8.0 percent; Wumart Store, Inc.（HK:8277）climbed 3.49 percent and New World Department Store China Ltd. （HK:0825）added 1.73 percent.
Gold shares drop
Gold shares dropped on lower gold price. Zijin Mining (SH:601899;HK:2899), China’s largest gold producer, declined 3.74 percent on Shanghai and 3.64 on Hong Kong. Zhaojin Mining Industry Co.(HK:1818) retreated 7.03 percent. Sino Gold Mining (HK:1862) plunged 8 percent.
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