HONG Kong stocks fell for a second day yesterday on renewed concern global economic growth will slow as credit-market losses widen and after crude oil prices declined.
Esprit Holdings Ltd, a Hong Kong-based global clothing retailer, dropped the most in a month. PetroChina Co, the nation's largest oil producer, had its biggest decline in three weeks. Alibaba.com Ltd, owner of China's biggest trading Website for companies, plunged the most in three weeks after Pacific Crest Securities said the nation's worst snowstorms in 50 years may erode earnings.
Subprime-related "worries still linger and the impact hasn't totally come out yet," said Renault Kam, a senior portfolio manager at Atlantis Investment Management in Hong Kong.
The Hang Seng Index lost 327.12, or 1.4 percent, to close at 23,984.57, after rising as much as 0.7 percent. More than four stocks retreated for each that gained on the benchmark, which fell 1.1 percent on Tuesday. April futures dropped 1.2 percent to 23,997.
The Hang Seng China Enterprises Index, a measure of so-called H shares of mainland Chinese companies, fell 2.5 percent to 12,863.80, its largest drop since March 31, Bloomberg News said.
Largest fall
Esprit lost HK$3.55, or 3.8 percent, to HK$90 (US$11.55), its largest decline since March 13. Li & Fung Ltd, which sells goods to Wal-Mart Stores Inc, retreated 85 cents, or 2.9 percent, to HK$28.30, its biggest drop since March 28. China Merchants Holdings (International) Co, the owner of stakes in the country's five largest container ports, declined HK$2.05, or 5.3 percent, to HK$36.60, its steepest drop since March 17.
United States stocks fell on Tuesday, with the Standard & Poor's 500 Index declining 0.5 percent, after the first quarterly earnings reports disappointed investors, Washington Mutual Inc slashed its dividend and some Federal Reserve officials warned of a prolonged recession.
PetroChina lost 38 cents, or 3.6 percent, to HK$10.26, its biggest drop since March 20. CNOOC Ltd, China's biggest offshore oil producer, fell 34 cents, or 2.8 percent, to HK$11.98, its biggest decline since March 31.
Crude oil futures dropped 0.5 percent to US$108.50 a barrel in New York yesterday. The contract was recently at US$108.23 in after-hours trading.
Alibaba shed HK$1.46, or 8.7 percent, to HK$15.30, its largest decline since March 18. The stock was the 201-member Hang Seng Composite Index's No. 1 percentage loser today.
China BlueChemical Ltd, the fertilizer unit of CNOOC, the nation's third-largest oil company, fell 3.5 percent, to close at HK$4.13.