Hong Kong stocks fell, with the benchmark index retreating from its highest since January, as telecommunications fell and Belle International Holdings Ltd. led declines.
The Hang Seng Index lost 0.6 percent to 23,184.65 as of 9:34 a.m. in Hong Kong. The gauge climbed 0.9 percent yesterday to erase this year��s loss. The Hang Seng China Enterprises Index, also known as the H-share index, slid 0.4 percent to 10,480.93. The Shanghai Composite Index fell 0.2 percent after MSCI Inc. kept mainland shares off its emerging-markets index.
Hong Kong��s benchmark has rebounded after falling as much as 9.1 percent this year as China��s government introduced stimulus including reserve-ratio cuts to boost the economy. The equity gauge traded at 10.8 times estimated earnings yesterday, compared with 16.5 for the Standard & Poor��s 500 Index.
People��s Bank of China this week announced a 0.5 percentage-point cut in reserve requirements for some banks, with the aim of supporting smaller companies and agricultural borrowers. The reduction will take effect next week and will add 70 billion yuan ($11.2 billion) to the financial system, according to HSBC Holdings Plc.
Source : Bloomberg