Hong Kong Stocks Pull Back After U.S. Sell-off

Hong Kong stocks lost ground Wednesday morning, following a drop for U.S. markets overnight. The Hang Seng Index was 0.6% lower after two-day winning streak, while the mainland-China-tracking Hang Seng China Enterprises Index dropped 0.4%. On the mainland, Shanghai shares also retreated in choppy trading, with the Shanghai Composite down 0.6% after closing above 4,900 for first time in over seven years. In Hong Kong, index heavyweight China Mobile Ltd. declined 2.1%, and Sino-British banking giant HHSBC Holdings PLC fell 1.1%. Bourse-operator Hong Kong Exchange & Clearing Ltd. gave up 1.4% after rallying 5.4% on Tuesday. Major Property developers also traded mostly weaker, as index component China Overseas Land & Investment Ltd. sagged 2.2%, Evergrande Real Estate Group Ltd. shed 2%, Poly Property Group Co. dropped 1.5%, and Shimao Property Holdings Ltd. moved down 0.9%. Financial shares also softened after a strong rally the previous day, as China Everbright Ltd. slid 3.2%, and Ping An Insurance Group Co. traded 1.5% lower. On the upside, shares of Zijin Mining Group Co. surged by more than 15% as the name resumed trading following the gold extractor's announcement of a private share issue to fund acquisitions and new projects.