Hong Kong stocks slid, with the benchmark index paring its biggest weekly gain since September, as developers extended losses. Luxury-home maker Sunac China Holdings Ltd. dropped on plans to buy a stake in Greentown China Holdings Ltd.
The Hang Seng Index fell 0.5 percent to 22,608.32 as of 9:37 a.m. in Hong Kong, poised for a 3.5 percent weekly gain. The Hang Seng China Enterprises Index, also known as the H-share index, slid 0.7 percent to 9,896.08. A report showed China��s bad loans jumped the most in more than five years.
The H-share index lost 7.8 percent this year through yesterday as concern about China��s economy weighed on investor sentiment. The gauge traded at 6.9 times estimated earnings yesterday, compared with 10.4 for the Hang Seng Index and 15.9 for the Standard & Poor��s 500 Index.
Chinese banks had the biggest quarterly increase in bad loans since 2005 as lagging economic momentum caused defaults to rise. Non-performing loans rose by 54 billion yuan ($8.7 billion) in the three months through March to 646.1 billion yuan, the highest level since September 2008, according to data released by the China Banking Regulatory Commission yesterday.
Source : Bloomberg