Following Wednesday’s 447-point advance, Hong Kong’s Hang Seng Index fell 88 points, 0.4%, to 21,277. The index of Chinese companies sank 108 points, 0.9%, to 11,577.
There was a reason the pull-back was modest despite worry over Greek debt, according to Conita Hung, head of equities at Delta Asia Financial. She told Equities: “Liquidity is still very strong, and investors are looking for a chance to get into the market.”
Hong Kong property stocks fueled Wednesday’s surge, Hung said, but further gains probably will come from buying of market giant HSBC (HBC) and big Chinese banks. End
Hong Kong Blue Chips: -88, -0.4%, to 21,277, 02-16-12, Hang Seng Index
Chinese Stocks in Hong Kong: -108, -0.9%, to 11,577, 02-16-12, HSCE Index
Shanghai Stocks: -0.4% to 2,357, 02-16-12, Shanghai Composite Index.
Chinese Stocks in the U.S.: +3.1, 413.9, 02-15-12, Bank of New York Mellon, ADR Index-China
Insight: Hong Kong finished lower due to a pull-back from Wednesday's big gains and worry over the simmering Greek debt crisis. Funds flowed to laggards: automaker Geely (GELYY) +3%. Cement maker TCC (1136.HK) jumped 6.2% on a positive profit alert. New government guidelines favoring the media boosted stocks in that sector: MediaChina (0419.HK) +19.8%. KGI Research
Quotable: "It is still expected to be the loosening liquidity from both mainland China and overseas to drive up the market...." Guotai Junan International. 2-16-12
Chinese Company to watch: ZTE (ZTCOY) equipment and smart phone maker."Downside risks diminished greatly. ZTE announced that the Company and Ericsson recently entered into an agreement of dispute resolution, pursuant to which the two parties agree to withdraw all patent infringement litigations against each other." Guotai Junan International. 2-15-12
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For a list of Chinese companies sold in the U.S. and information on each company go to http://www.adrbnymellon.com/dr_country_profile.jsp?country=CNll
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