Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200806/20080613/article_362984.htm
Hong Kong's key index tumbles to 10-week low
Created: 2008-6-13
Author:Hanny Wan
HONG Kong stocks fell yesterday, dragging the benchmark index to a 10-week low, on speculation that higher interest rates will curb global economic growth.
Aluminum Corp of China Ltd, the world's second-biggest alumina producer, had its worst close in almost three months on concern that demand for raw materials will slow. Hang Lung Properties Ltd, a Hong Kong-based developer which also invests on the Chinese mainland, led property stocks lower on expectations that higher borrowing costs will dent real estate demand.
The Hang Seng Index lost 303.74, or 1.3 percent, to 23,023.86, its lowest close since March 31. The measure retreated 5.7 percent this week, set for its worst week since the period ending on March 7, on concern that the mainland will take further measures to tame inflation, Bloomberg News said.
"Sentiment is weak," said Mona Chung, a Hong Kong-based fund manager at Daiwa Asset Management Ltd, which oversees more than US$2 billion. "There are mounting concerns that governments will take more aggressive measures to tackle inflation, thus capping economic growth." Central banks in India, Russia, Brazil, Indonesia, the Philippines, Vietnam and Pakistan have all boosted borrowing costs in the past month. The Chinese mainland last Saturday ordered its banks to increase reserves for a fifth time this year.
A8 Digital Music Holdings Ltd, a provider of music for mobile devices, surged 36 percent to HK$2.58 (US$0.33) on its debut.
Little Sheep Group Ltd, the operator of a hot-pot restaurant chain in the Chinese mainland, closed unchanged on its first day of trading after plunging as much as 9.4 percent and climbing as much as 6.9 percent.
Aluminum Corp of China Ltd, the world's second-biggest alumina producer, had its worst close in almost three months on concern that demand for raw materials will slow. Hang Lung Properties Ltd, a Hong Kong-based developer which also invests on the Chinese mainland, led property stocks lower on expectations that higher borrowing costs will dent real estate demand.
The Hang Seng Index lost 303.74, or 1.3 percent, to 23,023.86, its lowest close since March 31. The measure retreated 5.7 percent this week, set for its worst week since the period ending on March 7, on concern that the mainland will take further measures to tame inflation, Bloomberg News said.
"Sentiment is weak," said Mona Chung, a Hong Kong-based fund manager at Daiwa Asset Management Ltd, which oversees more than US$2 billion. "There are mounting concerns that governments will take more aggressive measures to tackle inflation, thus capping economic growth." Central banks in India, Russia, Brazil, Indonesia, the Philippines, Vietnam and Pakistan have all boosted borrowing costs in the past month. The Chinese mainland last Saturday ordered its banks to increase reserves for a fifth time this year.
A8 Digital Music Holdings Ltd, a provider of music for mobile devices, surged 36 percent to HK$2.58 (US$0.33) on its debut.
Little Sheep Group Ltd, the operator of a hot-pot restaurant chain in the Chinese mainland, closed unchanged on its first day of trading after plunging as much as 9.4 percent and climbing as much as 6.9 percent.
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