Hong Kong Stocks Retreat As HSBC Weakens

Hong Kong stocks pulled back Tuesday morning, with the Hang Seng Index dropping 0.5%, while the mainland-China-tracking Hang Seng China Enterprises Index fell 0.9%. Over on the mainland, the Shanghai Composite Index edged 0.2% higher in seesaw trade after rallying 4.7% the previous day. In Hong Kong, top-weighted index component HSBC Holdings PLC lost 0.5% after Sky News cited unnamed sources as saying the Sino-British banking giant may announce next week a plan for 10,000 to 20,000 job cuts globally. Among other heavily weighted stocks, China Construction Bank Corp. declined 1%, but Tencent Holdings Ltd. and China Construction Bank Corp. rose 0.5% and 0.2%, respectively. Leading construction-equipment manufacturer Zoomlion Heavy Industry Science & Technology Co. surged 7.2% as it resumed trading after the company said it planned to join Mandarin Capital Management in the purchase of a 75% stake in Italian environmental company Ladurner Ambiente. Property developer Guangzhou R&F Properties Co. Ltd. soared 8.5% after the company restarted its plan for an initial public offering on the mainland stock markets. Among other market movers, Chinese banks were mostly lower, with Bank of Communications Co. down 0.8%, Industrial & Commercial Bank of China Ltd. off 0.7%, and Bank of China Ltd. lower by 0.6%. Shares of Lenovo Group Ltd. were up 0.8% as Dow Jones Newswires reported after the market open that the company had named a new head for its mobile division.