HONG KONG, Sept 23 (Reuters) - Hong Kong shares are set to weaken further on Friday, poised for their worst week since the 2008 financial crisis as investors look to extend a selloff to reduce riskier holdings as global recessionary fears escalate.
With Japan’s markets closed on Friday for a public holiday, Hong Kong could come under pressure as investors look to raise dollars, with margin calls possibly leading to more selling.
The Hang Seng Index closed down 4.9 percent at 17,912.0 points on Thursday and was down 7.9 percent on the week. The China Enterprises Index finished down 6.3 percent at 9,202.7 points and was down 10.2 percent on the week.
Thursday’s decline left the Hang Seng Index technically oversold and in a gap on the charts that formed between the high on July 14, 2009 at about 17,896 and the low on July 15, 2009 at about 18,030.
This gap is seen offering near-term support, with the next support seen at about 17,878, or the 50 percent retracement of the rise from the cyclical troughs in October 2008 to its peak in November 2010.
The Hang Seng A/H premium index , which measures the valuation differential between shares of Chinese companies listed in the mainland and Hong Kong markets, hit its highest since January 2010 on Thursday, a sign that investors in Shanghai are more optimistic than their peers in Hong Kong.
Banking and property were among the top losers on Thursday after Reuters reported that China’s banking regulator had ordered trust companies to report on their exposure to the parent and units of Greentown China Holdings Ltd .
China Resources Land Ltd and China Overseas Land & Investments Ltd lost about 7 percent each. China Resources Land is poised for its worst quarter since listing in 1997, while those of China Overseas Land is on track for their roughest quarter in a decade.
Elsewhere in Asia, the Korea Composite Stock Price Index was trading down 4.4 percent at 1,721.3 at 0050 GMT.
* Debt-laden property developer Greentown China , whose shares dived on Thursday due to funding concerns, aims to slash its net gearing ratio to below 100 percent in 2-3 years as it refrains from buying land to focus on property sales, its CEO said.
* Swire Pacific Ltd said on Thursday that it is considering a separate listing in Hong Kong of its unit Swire Properties Ltd. The planned listing would be by way of introduction.
* The world’s largest aluminium producer, UC RUSAL , is interested in expanding in Iran but denied a newspaper report it was in talks to build a 375,000 tonne per year aluminium smelter there.
* China’s largest Internet firm Tencent Holdings said on Thursday it will launch a “super” e-commerce platform next month that will integrate its different social networking products and e-commerce initiatives into one website.
* China’s Dongxiang Group said on Friday in a statement to the Hong Kong stock exchange that it would invest $100 million in Yufeng Funds, a fund targeted at making investments in the Alibaba Group.
* China’s Sany Heavy Industry Co Ltd has postponed its up to $3.3 billion Hong Kong share offering due to tumbling global markets, three sources with direct knowledge of the decision said on Thursday. MARKET SUMMARY > Market’s 3 pct fall suggests deepening worry > U.S. debt rallies as stock plunge spurs safety > Dlr climbs, global gloom boost safe-haven bid > Brent crude at 6-wk low on recession worry (Reporting by Clement Tan; Editing by Jonathan Hopfner)