Hong Kong shares fall 1.44

Hong Kong shares fall 1.44

Hong Kong stocks collapsed to a two-month low on Monday. It fell 1.44 percent. The Hang Seng Index fell 350.67 points to 23,955.49 on turnover of HK$72.35 billion ($9.34 billion).

HSBC's preliminary purchasing managers' index for September will be released on Tuesday. Rumors have raised about another fall in the upcoming index. Investors are closely looking in the private preliminary factory survey fearing of more economic slowdown.

Chinese Finance Minister Lou Jiwei informed that, despite a slowdown in the economy, the government have no plan to make any significant policy adjustment. There were some expectations roaming around the market after People's Bank of China injected $81 billion into the top five banks to boost lending. But exceptions of monetary easing such as, cuts in interest rates or banks' reserve requirements, are fading away after Finance Minister made this remark.

Central China Securities analyst Zhang Gang said,

There might be some measures in the third or fourth quarter to offset slowing economic growth, but any big policy moves, like an interest rate cut, are unlikely.

Shanghai Composite Index lost 1.70 percent, or 39.58 points, to end at 2,289.87 on turnover of 147.8 billion yuan ($24.1 billion).

The Shenzhen Composite Index also dropped 1.22 percent, or 15.71 points, to 1,275.52 on turnover of 169.4 billion yuan.

However, metals and financial stocks are leading the declines in Shanghai. Industrial and Commercial Bank of China (ICBC) fell 1.97 percent to 3.49 yuan. China Pacific Insurance Group lost 3.84 percent to 18.79. Aluminum Corporation of China (Chalco) dropped down 3.85 percent to 3.75 yuan. Henan Yuguang Gold & Lead also declined 5.01 percent to 12.71 yuan.

Sino Land fell 4.0 percent at HK$12.44 while Internet firm Tencent sank 3.3 percent to HK$121.10.Casino operator Sands China was 0.11 percent lower at HK$44.6, while ICBC bank downed 1.56 percent to HK$5.04. China Mobile eased 1.4 percent to HK$95.05.

The market liquidity has been diverted by Initial public offerings (IPOs) as Chongqing Gas Group are issuing news shares on Monday. Eleven other domestic IPOs are being expected to issue new shares later this week.

Hong Kong shares fall 1.44