Hong Kong stocks fell, with the benchmark index dropping for a second day, after U.S. shares retreated. Banks and energy companies led declines.
The Hang Seng Index lost 0.8 percent to 23,077.92 as of 9:32 a.m. in Hong Kong. The Hang Seng China Enterprises Index of mainland shares, also known as the H-share index, dropped 1.3 percent to 10,371.88.
China will boost public infrastructure investment and cut utilities�� taxes by about 24 billion yuan ($3.9 billion) a year, the State Council said yesterday. Falling imports last month underlined weak domestic demand that makes the nation more reliant on exports. Policy makers are seeking to build industries to replace real estate and export-oriented manufacturing.
Imports fell 1.6 percent in May, the customs agency said June 8. The drop wasn��t foreseen by any of the 42 economists in a Bloomberg survey, which had a median projection for a 6 percent gain. Exports rose 7 percent. Reports are due this week on new loans, retail sales and industrial output.
The People��s Bank of China is encouraging banks to lend more to exporters to boost shipments, according to a statement posted on the central bank website yesterday.
Source : Bloomberg