Hong Kong Stocks Drop Further With Oil Shares Weak

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Hong Kong stocks extended their losses Friday morning, as oil shares were mostly weaker amid concerns about earnings despite recent gains for crude futures. The Hang Seng Index edged down 0.2%, with the mainland-China-tracking Hang Seng China Enterprises Index off 0.2%. State-owned energy giant PetroChina Co. retreated 0.5% in Hong Kong, while its Shanghai-listed A-shares declined 2.1%, after it reported a 17% fall in its net profit last year, mainly due to "the fall in crude prices." Cnooc Ltd. , China's largest offshore oil producer, dropped 0.4% amid caution ahead of its own earnings, due later in the day. On the other hand, China Petroleum & Chemical Corp., or Sinopec , Asia's largest oil refiner, saw its Hong Kong-listed shares rise 0.2%, though its Shanghai A-shares fell 0.8%. The refiner reported last weekend that its 2014 earnings slid 29%, the largest fall in six years. Other energy plays also posted losses, as China Oil & Gas Group Ltd. gave up 1.1%, and China Oilfield Services Ltd. drifted 0.2% lower. Over in the financial sector, Industrial & Commercial Bank of China Ltd. pulled back 0.4% after its 2014 profit increased by a less-than-expected 5%. Its local rivals mostly declined, with Bank of China Ltd. falling 1.2%, China Merchants Bank Co. dropping 1%, China Citic Bank Corp. down 0.7%, and both China Construction Bank Corp. and Bank of Communications Co. off 0.3%. Among other movers, Chinese home appliance maker Haier Electronics Group Co. shed 2.8% despite posting a 20% jump in its profit for last year. Over on the Chinese mainland, the Shanghai Composite Index fell 0.3%.

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