Hong Kong Shares Down After Christmas Break, Pulled Lower by China Weakness

Hong Kong stocks fell on Monday pulled lower by a slump in mainland shares on the first trading day after last week’s Christmas holiday.

The Hang Seng Index fell 1.0 percent, to 21,919.62, while the China Enterprises Index lost 1.7 percent, to 9,789.46 points.

Trading was thin, as many traders have not yet come back from their holidays.

The market was not helped either by China’s weak November industrial profits data released on Sunday, and an afternoon slump in mainland stocks.

All major sectors dropped, with the biggest decline seen in energy shares.

Shares of China Telecom Corp Ltd lost 1.3 percent, after China’s anti-corruption watchdog said on Sunday that the company’s Chairman, Chang Xiaobing, is being investigated for an alleged disciplinary violation.

Source: Reuters

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Chinese World-Beating Stocks Rally Takes Pause Before Christmas

China’s stocks fell for a second day in dwindling turnover amid concern a world-beating rally has gone too far, too fast.

The Shanghai Composite Index dropped 0.4 percent to 3,621.05 at 9:53 a.m., dragged down by health-care and property companies. Beijing Tongrentang Co. fell 6.2 percent, paring a month-long rally to 45 percent. Real estate companies, the best performers this month, led declines among industry groups. Hong Kong’s Hang Seng Enterprises Index gained 0.9 percent before the city’s financial markets are shut from this afternoon through Christmas day.

The Shanghai gauge has rallied 19 percent this quarter, heading for the biggest gain among global benchmark measures tracked by Bloomberg, after the government took measures to prop up equities and cut interest rates six times within a year.

Source: Bloomberg

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