The Hang Seng Index lost 0.1 percent to 22,692.42 as of 9:35 a.m. in Hong Kong. The measure jumped 3.9 percent last week as investors speculated China��s government would add stimulus to counter a deepening economic slowdown. The Hang Seng China Enterprises Index, also known as the H-share index, today dropped 0.7 to 9,896.42 after a 2.8 percent gain last week.
China��s new-home prices rose in April in the fewest cities in a year and a half, a report showed yesterday. Prices last month climbed in 44 of the 70 cities tracked by the government, compared with 56 cities in March. Separately, the People��s Bank of China said new housing loans in Shanghai were 3.9 billion yuan ($625.7 million) in April, down by 1.37 billion yuan from a year ago.
The central bank on May 13 called on the biggest lenders to expedite mortgages after falling real estate sales and property construction helped drag growth in the world��s second-largest economy to its slowest pace in six quarters.
Chinese stocks listed in Hong Kong are caught in a œtug of war between optimism over the government��s increasingly accommodative policies and concern about the slowing property market, China International Capital Corp. analysts wrote in a note today.
The H-share measure fell 8 percent this year through last week and traded at 6.9 times estimated earnings, compared with 10.5 times for the Hang Seng Index and 15.9 for the Standard & Poor��s 500 Index.
Source : Bloomberg