Update | Hong Kong, mainland Chinese stocks catch a chill after first falls in seven weeks
The Shanghai Composite Index lost just under 1 per cent to end the day at 3,523 on Monday – the biggest drop since December 12. Hong Kong’s Hang Seng Index slid 0.56 per cent to end the day at 32,966.89
Hong Kong stocks fell on Monday after rising for seven straight weeks, led by index heavyweight insurers and conglomerates. Mainland stock markets also retreated the most in the same period.
The benchmark Hang Seng Index dropped 0.56 per cent, or 187.23 points, to 32,966.89.
The Hang Seng China Enterprises Index, known as the H-shares index, also ended down 0.47 per cent at 13.659.59.
But turnover was HK$191.63 billion (US$127.9 million), up four per cent from last week’s daily average.
Insurers and conglomerates led the fallers, with AIA losing 1.8 per cent, Ping An ending down 2.94 per cent, CK Hutchison Holdings dropping 1.78 per cent and Fosun International trended 2.18 per cent lower.
“The declines were caused by profit-taking as well as some switching from traditional stocks to commodities on the continuing weakness of the US dollar,” said Louis Tse, managing director at VC Asset Management.
The stocks that gained the most last year bore the brunt of the sell-off, as traders cut their holdings to lock in the outsize gains in what analysts considered as profit taking.
