Hong Kong, Shanghai stocks plunge deeper

11/23/2010 07:20

From Market Watch

LOS ANGELES (MarketWatch) -- Hong Kong and Shanghai stocks continued their descent midday Tuesday, with the markets in broad retreat and with banks and housing-related plays sharply lower. The Hang Seng Index (THE:HK:HANGSENG) extended its 1% opening loss to a 1.8% fall, to trade at 23,097.6. The Shanghai Composite (SHANGHAI:CN:SHCOMP) was down 2.5% at 2,812.5, while the Hang Seng China Enterprises Index -- which tracks mainland Chinese firms listed in Hong Kong -- was down 2.1%. The sell-off was due partly to fears of yet more moves to stop rising real-estate prices, particularly in Hong Kong where new measures were announced last Friday. This sent property shares lower, with Sino Land Co. (THE:HK:83) (PINK:SNLAF) giving up 3.1%, and may have also weighed on resource stocks, such as Jiangxi Copper Co. (SHANGHAI:CN:600362) (THE:HK:358) (PINK:JIXAY) . down 3.4% in Hong Kong and losing 6.3% in Shanghai. Banks also suffered, continuing their downward momentum after policy-tightening announced in Beijing at the end of last week. Bank of China Ltd. (SHANGHAI:CN:601988) (THE:HK:3988) (PINK:BACHY) gave up 2.2% in Hong Kong, while China Construction Bank (SHANGHAI:CN:601939) (THE:HK:939) (PINK:CICHF) was down 2.1%.

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