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Hong Kong, China shares extend losses after April flash PMI disappoints
April 23, 2013 / 2:50 AM / 5 years ago

Hong Kong, China shares extend losses after April flash PMI disappoints

* HSI -1.0 pct, H-shares -1.6 pct, CSI300 -2.0 pct

* Beta plays take brunt of hit, cement producers tumble

* Great Wall Motor slides from Monday’s record closing highs

By Clement Tan

HONG KONG, April 23 (Reuters) - Hong Kong and China shares extended losses on Tuesday, led by cyclical sectors after a preliminary survey of manufacturing activity in April in the world’s second-largest economy came in weaker than expected.

China’s flash HSBC Purchasing Managers’ Index for April fell to 50.5 from 51.6 in March, as Beijing said Chinese companies are still facing problems of overcapacity and have no strong desire to make new investments.

At 0232 GMT, the Hang Seng Index was down 1 percent at 21,828.7 points. The China Enterprises Index of the leading Chinese listings in Hong Kong shed 1.6 percent.

The CSI300 of the top Shanghai and Shenzhen A-share listings slid 2 percent, while the Shanghai Composite Index lost 1.6 percent. Both are headed for their worst daily loss since March 28.

The Chinese banking sector was among the leading index drags in both markets. Industrial and Commercial Bank of China fell 1.5 percent in Hong Kong and 0.5 percent in Shanghai.

Anhui Conch Cement tumbled 3.8 percent in Hong Kong and 4 percent in Shanghai after China’s largest cement producer said its 2013 first-quarter net profit declined 22 percent from a year earlier.

Great Wall Motor fell 3.3 percent in Hong Kong and was flat in Shanghai. Both its A and H-share listings had closed at record highs on Monday. Traders had cited comments from an executive that new products unveiled over the weekend could help raise 2013 sales by 30 percent, higher than the company’s previous guidance.

But in a statement to the Hong Kong Exchange after markets closed on Monday, the company denied April 22 news reports which cited an executive saying its sports utility sales surged 92 percent in the first quarter and that new vehicles would help the company post a 30 percent increase in 2013 sales.

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