Hong Kong shares close down 1.5 pct, shed 2013 gains
HONG KONG, March 13 |
HONG KONG, March 13 (Reuters) - Hong Kong shares gave up their remaining 2013 gains on Wednesday, with the day's losses accelerating in late afternoon after China's central bank governor said monetary policy was no longer loose.
The Hang Seng Index closed down 1.5 percent at 22,556.7. It is now down 0.4 percent in 2013 after being up as much as much as 6 percent in early February.
The China Enterprises Index of the leading Chinese listings in Hong Kong shed 2.3 percent on Wednesday and is now down 3.5 percent this year.
The CSI300 of the leading Shanghai and Shenzhen listings ended down 1.1 percent at 2,527.5, its lowest close since Jan. 11. The Shanghai Composite Index shed 1 percent on Wednesday and is now down 0.2 percent this year.
* Losses in Chinese banks and other growth-sensitive sectors accelerated after the governor of the People's Bank of China said the country's monetary policy position is now neutral and no longer loose.
* Chinese financials were earlier hurt by a report in the 21st Century Business Herald newspaper that the Chinese banking regulator said financial institutions should be cautious about buying bonds issued by local government financing vehicles (LGFV). The report cited draft guidelines from the China Banking Regulatory Commission (CBRC) that also directed banks to centralise approval of all LGFV bond transactions in their head offices.
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