HONG KONG, March 28 Hong Kong shares were
knocked off their highest in almost two weeks on Thursday,
ending the first quarter on a whimper, after the mainland's
banking regulator moved to tighten regulation over wealth
The Hang Seng Index closed down 0.7 percent at
22,299.6. The China Enterprises Index of the top Chinese
listings in Hong Kong shed 1.3 percent. They posted their first
quarterly loss in three, losing 1.6 and 4.7 percent,
The CSI300 of the leading Shanghai and Shenzhen
A-share listings closed down 3.3 percent at 2,499.3. The
Shanghai Composite Index dived 2.8 percent. Both had
their worst single-day showing since March 4.
* China Minsheng Bank dived 7.9 percent, heading
losses in the Chinese banking sector after the China Banking
Regulatory Commission singled out risks of investment in
"informal debt assets", such as trust loans, letters of credit,
accounts receivable and bank acceptance bills, among others, in
a clutch of instruments that are broadly categorised in China as
"wealth management" products.
* Banks are now required to keep investments in such assets
at no higher than 35 percent of total outstanding wealth
management products, or no more than 4 percent of their total
assets - whichever is the lower amount.
* Thursday was the last day of trading for the quarter and
the month of March in Hong Kong with markets shut for a four-day
Easter weekend from Friday, reopening on Tuesday. Mainland
Chinese markets stay open throughout.