Hong Kong Stocks Retreat After PBOC Official's Remarks

MarketWatch Pulse

Hong Kong stocks reversed opening gains and headed down on Friday morning, after a senior official from the People's Bank of China said the latest reserve-ratio cut by the central bank "is not the start of strong stimulus", according to state media reports in the previous day. The Hang Seng Index retreated 0.3%, while the Shanghai Composite Index fell 0.9%, looking possibly to extend a three-day losing streak.Mainland Chinese banks were mixed, as Bank of China Ltd. declined 1.1%, China Citic Bank Corporation Ltd. lost 0.7%, China Construction Bank Corporation dropped 0.6%, while China Minsheng Banking Corp., Ltd. advanced 0.8%, and Bank of Communications Co., Ltd. rose 0.6%. Among other market movers, telecoms giant China Mobile Ltd. gave up 1%, mainland developer China Overseas Land & Investment Ltd. pulled back 0.8%, while rival China Resources Land Ltd. tacked on 1.5%. Major oil producers Cnooc Ltd. and PetroChina Co. Ltd. added 0.7% and 0.6% each, as global crude prices posted a strong rebound.

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