HK falls to 5-mth low, China slips

HONG KONG/SHANGHAI: Hong Kong shares slipped to a five-month closing low Monday, falling for a third consecutive session on mounting concerns that the eurozone's debt problems will hamper the global economic recovery.
The benchmark Hang Seng Index closed down 0.58 per cent or 114.19 points at 19,550.89. The China Enterprises Index of top locally listed mainland Chinese stocks closed down 1.28 per cent at 10,989.19. Market turnover fell to HK$59.63 billion ($7.67 billion), its lowest level since Jan 4, from Friday's HK$77.5 billion.
Funds that had been borrowing US dollars at low interest rates to invest in higher-risk Asian stocks - known as carry trades - were unwinding their positions on the back of the strengthening US dollar, now seen as a safe haven in the current market turmoil, dealers said.
China's key stock index edged down 0.14 per cent in shrinking turnover, with the banking and property sectors soft as bank lending curbs and the outlook for more new share supplies weighed on the market. The Shanghai Composite Index ended at 2,935.174 points, extending the previous week's 1.7 per cent loss, the third weekly fall in a row. Gaining Shanghai A shares outnumbered losers by 489 to 378, while turnover slipped to a four-month low of 73 billion yuan ($11 billion) from Friday's 110 billion yuan.
Activity is expected to thin out in the run-up to the one-week holiday for the Lunar New Year, which begins on Feb 14. Four new stocks will list Tuesday including China First Heavy Industries, while five companies are taking subscriptions on Monday and Tuesday, including mid-sized Chinese brokerage Huatai Securities Co, which plans to raise as much as 17.26 billion yuan in China's biggest initial public offering this year.-Reuters