(For Shanghai stock market reports, click [.SS])
(Adds Monday lunch close, details)
By Rita Chang
HONG KONG, Dec 17 (Reuters) - Hong Kong stocks fell broadly
on Monday, pacing a drop on Wall Street, with the city's property
developers leading the losses on worries the Federal Reserve
would have less scope for rate cuts after a surge in inflation.
Shares in newcomer Uni-President China Holdings Ltd
(0220.HK), the mainland China arm of Taiwan's largest food and
beverage conglomerate, managed to close the morning 1 percent
higher than their HK$4.22 IPO price after struggling in earlier
trade.
The benchmark Hang Seng Index .HSI had fallen 2.4 percent
to 26,896.54 by midday on mainboard turnover of HK$57.8 billion
(US$7.4 billion), compared with Friday morning's HK$66.03
billion.
The China Enterprises Index of Hong Kong-listed mainland
companies .HSCE, or H shares, dropped 2.4 percent to 15,581.69.
"The U.S. economic data dashed hopes for more U.S. rate
cuts," said Louis Tse, sales director at VC Brokerage.
"People are negative. I think (the market) may drop further
before we can find support. Whether it's 26,500 or lower remains
to be seen this afternoon."
Rate-sensitive property issues underperformed. Hong Kong's
rate cycle tends to follow the United States because its currency
is pegged to the U.S. dollar.
Hang Lung Properties (0101.HK) dived 6.7 percent to HK$32.25
and Henderson Land (0012.HK) tumbled 7.6 percent to HK$67.70.
The Hang Seng property subindex .HSNP closed the morning
down 5.3 percent.
Among underperforming large cap stocks, China Construction
Bank (0939.HK) dropped 2.5 percent to HK$6.63. CNOOC Ltd
(0883.HK) slid 3.5 percent to HK$12.18.
Alibaba.com (1688.HK) skidded 4.8 percent to HK$26.70.
GOME Electrical Appliances (0493.HK), China's top electronics
retailer, jumped 2.4 percent to HK$18.12, after saying on Sunday
it would have a dominant position in key Chinese markets after
taking over the management of Beijing-based rival Dazhong
Electrical Appliances [ID:nHKG141348].
(US$1=HK$7.8)
(Editing by Edmund Klamann)
