Hong Kong shares in tepid rebound from 4-week low, China flat

Business & Markets 2013
Written by Reuters
Monday, 27 May 2013 13:24
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HONG KONG (May 27): Hong Kong shares edged up on Monday after
a four-day losing streak but mainland markets remained under pressure
after new data pointed to an uncertain pace of recovery in the world's
second-largest economy.
A report in the People's Daily that China may not launch new stimulus
amid concerns of a debt buildup and overcapacity from a previous
programme added to the negative sentiment.
At midday, the Hang Seng Index rose 0.2 percent from its four-week
low to 22,669.37 points. The China Enterprises Index of the top Chinese
listings in Hong Kong gained 0.1 percent.
Midday turnover in Hong Kong was at its lowest since February.
The CSI300 fell 0.1 percent, while the Shanghai Composite Index was
flat at 2,288.76 points.
China's industrial profits growth quickened in April from the previous
month, though the government noted that the pickup was due mainly to
a low comparative base, indicating that the economy still faces slack
domestic and external demand.
"The investors should avoid bottom-fishing, particularly in those policyrelated
stocks," said Castor Pang, Core Pacific-Yamaichi Securities'
head of research.
"Unless we see some exceptionally good figures, the market will keep seesawing in the near term," he said.
Property and industrial sectors were broadly weak on Monday. China Vanke fell 1.3 percent in Shenzhen after testing its
highest since Feb. 5 last week. In Hong Kong, Agile Property dropped 1 percent, set for its lowest close in more than one
month, while Poly Property fell 0.6 percent.
Sany Heavy Industry fell 1 percent in Shanghai, while trading in its rival Zoomlion Heavy Industry Science and TECHNOLOGY
[] Co Ltd was suspended pending the company's response to a mainland media report that said its sales data was false.
Wuhan Steel fell 0.4 percent while its bigger rival Baotou Steel dropped 1 percent after Chinese steel futures fell to their
weakest levels in nearly nine months on Monday.
Shares in Winteam Pharmaceutical Group Ltd jumped 14.4 percent after the company said it would buy a 100 percent stake
of Tongjitang Chinese Medicine Company from Hanmax Investment Ltd and Fosun Industrial Co Ltd for 2.64 billion yuan.