Hong Kong shares close down 1.1 pct, at lowest in 4 weeks
HONG KONG |
HONG KONG Nov 13 (Reuters) - Hong Kong shares closed at a four-week low on Tuesday, dragged lower by Chinese shares on fears that the ongoing Communist Party congress would spawn little change in economic policies.
The Hang Seng Index ended down 1.1 percent at 21,188.7, its lowest close since Oct. 15. The China Enterprises Index of the top Chinese listings in Hong Kong finished down 2 percent at 10,230.1.
On the mainland, the CSI300 Index of the top Shanghai and Shenzhen listings shed 1.8 percent while the Shanghai Composite Index lost 1.5 percent. Both closed at levels last seen in late September.
* Growth-sensitive sectors related to the Chinese property sector suffered the brunt of Tuesday's losses after the state-run China Daily newspaper quoted China's housing minister as saying that Beijing is "actively studying" expanding a property tax beyond Chongqing and Shanghai. He also said he does not expect any loosening on restrictions on the sector, sparking fears that little change to China's economic policy would emerge from the 18th Congress meeting, scheduled to end on Wednesday.
* Chinese railway and infrastructure-related counters, which led a rally in September and October, trimmed 2012 gains. China Railway Group dived 6.2 percent, while China National Building Material lost 3.4 percent.
* The Hang Seng Index A/H premium index is now at 99.9. It has traded below 100 for more than three weeks, but is now at its highest since Oct. 17, suggesting the premium that onshore markets typically trade over offshore peers could return if H-shares continue to underperform A-shares.
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