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Hong Kong shares end 0.77 per cent lower

Reported by AAP
Wednesday, March 28, 2012
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Hong Kong shares slipped 0.77 per cent on Wednesday following a weak lead from Wall Street, while traders remain nervous over China's slowing economy.

The Hang Seng Index fell 161.49 points to 20,885.42 on turnover of HK$55.35 billion ($7.10 billion).

The loss was in line with regional sell-off as a rally in the first two months of the year looks to has given way to renewed worries over China after a recent string of weak figures from Beijing.

Wall Street provided an anaemic cue after a dip in US consumer confidence and a report showing house prices continued to fall in January.

The Dow lost 0.33 per cent, the S&P 500 dropped 0.28 per cent and the Nasdaq was flat.

A move by trading firm Li & Fung to raise HK$3.89 billion with a new share placement also weighed on the index.

The firm, which sources products for US retailers such as Wal-Mart and Abercrombie & Fitch, fell 5.2 per cent to HK$19.20 and was the worst-performing blue chip.

Cathay Pacific Airways fell 0.5 per cent to HK$14.86 and is now down 11.6 per cent for the year, compared with a 13.3 per cent rise for the index.

Cheung Kong dropped 1.3 per cent to HK$104.50, while Hutchison Whampoa slid 1.3 per cent to HK$79.40, ahead of their results on Thursday.

Chinese shares tumbled 2.65 per cent. The Shanghai Composite Index, which covers both A and B shares, slumped 62.30 points to 2,284.88 on turnover of 78.2 billion yuan ($A11.90 billion).

While the latest poor economic data from Beijing has sparked hopes that monetary policy will be eased investors have been left disappointed by the government's lack of action so far.

"Policymakers haven't sent a clear signal ... they should to do something to boost liquidity and shore up sentiment," Zhang Qi, an analyst at Haitong Securities, told AFP.

Firms with small market capitalisation fell as investors locked in profits on worries over corporate earnings.

Coal miner Shanxi Coking dropped 9.85 per cent to 10.25 yuan, oil product distributor Zhejiang Haiyue lost 9.08 per cent to 8.91 yuan and copper producer Western Resources fell 8.47 per cent to 17.95 yuan.

26/10/2014 03:03Sydney, Australia. 26 October,2014
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