Hong Kong Stocks Fall, As Energy Share Drag

MarketWatch Pulse

Hong Kong stocks declined Tuesday morning, with energy shares as a main drag on the back of plunging international crude-oil prices. The Hang Seng Index retreated 0.9%. Offshore oil and gas producer Cnooc Ltd. tumbled 3%, energy giant PetroChina Co. lost 2.6%, and refiner China Petroleum & Chemical Corp., or Sinopec, slid 2.5%, while China Oilfield Services Ltd. suffered a 3.2% loss. Major Chinese banks likewise retreated after previous gains, as Agricultural Bank of China Ltd. fell 2.1%, and China Construction Bank Corp. dropped 1.6%. Brokerage firms also pulled back after the previous rally fueled by the widely anticipated launch of stock options in China next year. Among them, Guotai Junan International Holdings Ltd. retreated 5.5%, Haitong International Securities Group Co. (formerly Taifook Securities) sank 5.1%, and China Galaxy Securities Co. weakened by 3.3%, although Shenyin Wanguo HK Ltd. added another 0.6% to its gains. Major real-estate developer China Resources Land Ltd. also bucked the trend to advance 0.8%, after saying it planned to acquire property assets from its parent, China Resources Co., for 14.8 billion yuan ($2.4 billion) with cash and new shares. Over on the Chinese mainland, the Shanghai Composite Index gave up 0.9% after a 2.8% gain on Monday.

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