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Hong Kong shares end 1.1 pct lower, retailer Belle sinks on weak outlook
August 22, 2012 / 8:11 AM / 5 years ago

Hong Kong shares end 1.1 pct lower, retailer Belle sinks on weak outlook

HONG KONG, Aug 22 (Reuters) - Hong Kong shares fell to their lowest in almost three weeks on Wednesday, hit by a 4.6 percent dive for Chinese footwear retailer, Belle International, on a weak second half outlook.

The Hang Seng Index closed down 1.1 percent at 19,887.8. The China Enterprises Index of the top Chinese listings in Hong Kong dropped 1.3 percent to 9,698.8.

The Shanghai Composite Index of more than 950 companies ended down 0.5 percent at 2,107.71, nearing the three-week low recorded on Monday. The CSI300 Index of top Shanghai and Shenzhen listings shed 0.78 percent.

HIGHLIGHTS:

* Dealers said losses on the Hang Seng Index accelerated in the afternoon after stop-losses were triggered in the futures market at about the 19,840 level.

* Belle International suffered its worst daily showing in more than seven months after its chairman said he expects profits to come under pressure from discounts by other rivals as they seek to reduce inventories. Belle posted late on Tuesday an 11.7 percent rise in first half net profit.

* Geely Automobile dived 5.9 percent, its worst loss in three months, after the Chinese car maker reported that higher-than-expected government subsidies buoyed its first-half earnings, offsetting weak domestic sales. (Reporting by Clement Tan; Editing by Sanjeev Miglani)

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