Hong Kong Stocks Fall, With Telecoms Weighing

MarketWatch Pulse

Hong Kong stocks extended losses Wednesday morning, as the Hang Seng Index fell 0.3%, with index heavyweight China Mobile Ltd. weighed with a 1.9% decline. Smaller rival China Unicom Hong Kong Ltd. lost 2.1% after the company posted a fall in its 2014 revenue, even as its profit rose 16%. Likewise, China Telecom Corp. dropped 1.4%. Several Hong Kong retailers also posted losses as the city's retail sales dropped nearly 15% in January from a year earlier, partly due to political demonstrations and protests against mainland Chinese visitors. Cosmetics retailer Sa Sa International Holdings Ltd. sagged 2.1%, jeweller Chow Sang Sang Holdings International Ltd. shed 1.1%, Chow Tai Fook Jewellery Group Ltd. lost 0.7%, and Luk Fook Holdings International Ltd. slipped 0.4%. Macau gaming shares pulled back following a previous rebound after the territory's gambling revenue posted a ninth straight month of decline, falling by a sharp 49% in February from a year earlier. MGM China Holdings Ltd. and Wynn Macau Ltd. each fell 2.4%, SJM Holdings Ltd. gave up 0.7%, and Galaxy Entertainment Group Ltd. traded 0.3% lower. However, Melco Crown Entertainment Ltd. -- which plans to delist from the Hong Kong bourse in July -- rose 1.1%. Chinese dairy product manufacturer China Mengniu Dairy Co. rallied 3.7% after UBS raised its target price for the stock. Among other market movers, Bank of China Ltd. retreated 1.1%, and China Resources Land Ltd. fell 1%, but Chinese computer maker Lenovo Group Ltd. advanced 2.4%. Over on the Chinese mainland, the Shanghai Composite Index recovered 0.3% after a 2.2% loss the previous day.

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