China stocks fall on profit taking; Hong Kong down 1.6 pct
10/08/2017 05:21
SHANGHAI, Aug 10 (Reuters) - China stocks ended the morning
session on Thursday lower amid profit taking in both mainland
and Hong Kong shares, and as recent gains prompted China's
largest aluminium producer to warn investors of market risks.
The CSI300 index .CSI300 fell 1.0 percent, to 3,693.62
points at the end of the morning session, while the Shanghai
Composite Index .SSEC lost 1.1 percent, to 3,240.69 points.
China CSI300 stock index futures for August fell 1.2
percent, to 3,674.8, 18.82 points below the current value of the
underlying index.
The materials sub-index .CSI300MT , which had risen more
than 30 percent since the beginning of June lost 2.4 percent,
weighed down by losses in steel producers.
"In the past several months steel shares have gone straight
up, so an appropriate correction is healthy and reasonable,"
said Huang Xiaobin, an analyst at Huatai Securities in Shenzhen.
Hesteel Co Ltd 000709.SZ was off by 3.5 percent at the end
of morning trade.
Shares in Aluminum Corp of China Ltd 601600.SS
(Chalco)were down 5.1 percent from their highest close in more
than two years.
In a statement posted on the website of the Shanghai Stock
Exchange Thursday, the company warned investors to be aware of
market volatility and secondary market trading risks.
Chalco said rises in the price of electricity could increase
costs, and that market expectations have changed.
China aluminium prices hit five-year highs on Thursday as
investors bet that capacity closures would tighten supply.
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The Hang Seng index .HSI dropped 1.6 percent, to 27,315.13
points, weighed down by financials and property developers.
The Hong Kong China Enterprises Index .HSCE lost 2.0
percent, to 10,749.09.
Wharf 0004.HK was the biggest loser in morning trade,
falling by 7.2 percent after surging 14 percent on Wednesday to
a record high close of HK$79.65 on news that its unit Wharf Real
Estate Investment Co Ltd would submit an application for a
separate listing on the main board. urn:newsml:reuters.com:*:nL4N1KV2SS
Wanda Hotel Development Co Ltd 0169.HK was one bright spot
in the Hong Kong market, surging 27.6 percent to HK$1.48, its
highest level in more than two years.
The company, a unit of Chinese conglomerate Dalian Wanda
Group led by Wang Jianlin, said on Thursday that it would buy
assets worth over 7 billion yuan ($1.05 billion) from
Wang-controlled companies as part of a restructuring.
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The index measuring price differences between dual-listed
companies in Shanghai and Hong Kong .HSCAHPI stood at 127.61.
A value above 100 indicates Shanghai shares are pricing at a
premium to shares in the same company trading in Hong Kong.
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China stock market graphics suite http://reut.rs/1NfkoGl
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(Reporting by Andrew Galbraith; Editing by Richard Pullin)
((Andrew.Galbraith@tr.com; +86 21 6104 1779; Reuters Messaging:
andrew.galbraith.thomsonreuters.com@reuters.net ; Twitter: https://twitter.com/apgalbraith))
Keywords: CHINA STOCKS/MIDDAY