Hang Seng Declines as Financials Weigh

• Apr 21, 2010
• Sectors:   China Report
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The Hang Seng Index slid 0.52% to close at 21,510.93 on April 21, in main board trading volume of HK$68.66 billion. The Hang Seng China Enterprises Index, which tracks mainland-based companies listed in Hong Kong, declined 0.53% to 12,371.

Financial shares were weak on Wednesday, after reports said the China Banking Regulatory Commission is requiring banks to conduct stress test for loans made to the real estate sector on a quarterly basis. China Construction Bank (0939.HK, 601939.SH) dropped 1.98%, and shares of China CITIC Bank (0998.HK, 601998.HK) and China Merchants Bank (3968.HK, 600036.SH) withdrew 1.81% and 1.72%, respectively.

The mining sector was mixed as several large companies reported yearly earnings. Zijin Mining (2899.HK) rose 2.05%, after the company announced 27% and 40% year-on-year growth in its first quarter sales revenue and net profit, respectively. Aluminum Corporation of China (NYSE:ACH, 2600.HK, 601600.SH) declined 0.72% after reporting first quarter profit of RMB 627 billion, below market expectations, despite the improvement from a net loss of RMB 1.89 billion in the same period last year.

China Life Insurance (NYSE:LFC, 2628.HK, 601628.SH) declined 1.49%. The company announced first quarter premium income of RMB 110.2 billion, up 6.06% annually. Ping An Insurance (Group) (2318.HK, 601318.SH) and PICC Property and Casualty (2328.HK) lost 0.36% and 0.26%, respectively, on Wednesday.

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