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Hong Kong shares snap losing streak but China growth concerns linger
May 27, 2013 / 9:00 AM / in 4 years

Hong Kong shares snap losing streak but China growth concerns linger

* HSI +0.3 pct, H-shares +0.3 pct, CSI300 +0.1 pct

* Turnover in Hong Kong lowest this year

* Property and industrial sectors broadly weak

By Yimou Lee

HONG KONG, May 27 (Reuters) - Hong Kong shares snapped a four-day losing streak in a mild rebound on Monday, with mainland markets tepid as investors remained cautious after new data pointed to an uncertain pace of recovery in the world’s second-largest economy.

A report in the People’s Daily that China may not launch new stimulus amid concerns of a debt buildup and overcapacity also weighed on the markets, with property stocks slipping.

The Hang Seng Index rose 0.3 percent from its four-week low to 22,686.05 points. The China Enterprises Index of the top Chinese listings in Hong Kong gained 0.3 percent.

Turnover in Hong Kong was at its lowest this year.

The Shanghai Composite Index ended up 0.2 percent at 2,293.1 points. The CSI300 of the leading Shanghai and Shenzhen A-share listings inched up 0.1 percent.

China’s industrial profits growth quickened in April from the previous month, though the government noted that the pickup was due mainly to a low comparative base, indicating that the economy still faces slack domestic and external demand.

“The investors should avoid bottom-fishing, particularly in those policy-related stocks,” said Castor Pang, Core Pacific-Yamaichi Securities’ head of research.

“Unless we see some exceptionally good figures, the market will keep seesawing in the near term,” he said.

Beijing is set to release results of its official May manufacturing index on June 1.

Property and industrial sectors were broadly weak on Monday. China Vanke fell 0.9 percent in Shenzhen after testing its highest since Feb. 5 last week. In Hong Kong, Agile Property dropped 0.7 percent to its lowest close in more than one month.

Sany Heavy Industry fell 1.6 percent in Shanghai, while trading in its rival Zoomlion Heavy Industry Science and Technology Co Ltd was suspended pending the company’s response to a mainland media report that said its sales data was false.

The solar panel sector rose, encouraged by a call from German Chancellor Angela Merkel and Chinese Premier Li Keqiang for an end to a trade row between Europe and China over solar panels and wireless equipment.

Shares in Comtec Solar Systems Group Ltd jumped 4 percent, while Solargiga Energy Holdings Ltd rose 3.9 percent.

Wuhan Steel fell 0.4 percent while its bigger rival Baotou Steel dropped 0.8 percent after Chinese steel futures fell to their lowest levels in nearly nine months on Monday.

Shares in Winteam Pharmaceutical Group Ltd jumped 13.3 percent after the company said it would buy a 100 percent stake of Tongjitang Chinese Medicine Company from Hanmax Investment Ltd and Fosun Industrial Co Ltd for 2.64 billion yuan.

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