Hong Kong stocks pull back 1.94% after abrupt rally

By Chen Siwu

HONG KONG, Dec. 9 (Chinese media) -- Hong Kong stocks retreated 1.94 percent below the key 15,000 mark on Tuesday with thinner turnover after Monday's huge rally of 8.66 percent.

The benchmark Hang Seng Index edged down 12.54 points, or 0.08 percent, to open at 15,032.33 and once moved out of the negative territory by advancing as much as 160.45 points, or 1.07 percent, to the day's highest 15,205.32 during the morning session.

Support above the key 15,000 level was short-lived after the market climbed the day's peak as profit-taking orders from the huge rallies sent the index to deficit zone again.

The index at one point fell as much as 327.4 points, or 2.18 percent, to the day's lowest 14,717.47 before dropping 291.65 points, or 1.94 percent, to close at 14,753.32.

Turnover fell to 56.93 billion HK dollars (7.35 billion U.S. dollars) from Monday's 63.88 billion HK dollars (8.25 billion U.S.dollars).

Among 42 components of the benchmark Hang Seng Index, declining shares led advancers 26 to 16.

Market heavyweight HSBC, which accounts for the largest weighting of the index, weakened 1.75 percent to 84 HK dollars, pulling down the index by 38.36 points alone.

Another heavyweight China Mobile, or the country's largest telecommunications operator, lost 4.18 percent to 78 HK dollars, dampening the index by 89.13 points.

Hong Kong Exchanges and Clearing Ltd., the market's sole operator, went down 1.4 percent to 70.5 HK dollars.

Banks and insurers of China were among most profit-taking targets after their steep gains in past sessions. ICBC, China's largest lender, lost 3.66 percent to 4.21 HK dollars. Bank of China, the country's second largest bank, dropped 3.49 percent to 2.49 HK dollars. China Construction Bank, the third largest bank in the country, slumped 4.74 percent to 4.62 HK dollars. China Life, the country's top insurance company, sank 2.94 percent to 23.1 HK dollars. Ping An declined 4.29 percent to 35.7 HK dollars.

Bank of Communications outpaced the broad market by moving up 0. 18 percent to 5.45 HK dollars. China Merchants Bank also outshone by expanding 2.08 percent to 14.76 HK dollars.

Local property companies in Hong Kong headed towards different directions. Sun Hung Kai, Hong Kong's largest house developer, fell 1.19 percent to 58.35 HK dollars. Henderson Land softened 4. 64 percent to 26.7 HK dollars. New World Development dipped 0.33 percent to 6.11 HK dollars.

Cheung Kong, one of Hong Kong's largest housing companies controlled by tycoon Li Ka-shing, outperformed the index by advancing 1.44 percent to 74 HK dollars. Sino Land continued to jump 8 percent to 6.48 HK dollars. Hang Lung Property added 0.36 percent to 16.96 HK dollars.

H-shares, which reflect the performance of 42 companies registered in the Chinese mainland, went down 135.71 points, or 1.67 percent, to close at 8,001.74 after surging 9.54 percent Monday.

China's energy companies were mixed. PetroChina, the country's largest oil producer, was up 0.15 percent to 6.71 HK dollars. CNOOC, China's largest offshore oil company, rose 4.42 percent to 6.61 HK dollars.

Sinopec, Asia's largest oil refiner, lost 1.17 percent to 5.09 HK dollars.

China's housing companies moved in different directions after Monday's upsurge. China Overseas, the country's largest real estate giant, sank 5 percent to 11.8 HK dollars. RF Properties dipped 0.26 percent to 7.75 after soaring 20.84 percent Monday. Country Garden lost 2.04 percent to 1.92 HK dollars. KWG Property fell 5.91 percent 1.91 HK dollars.

Greentown China further rose 3.53 percent to 3.22 HK dollars. Agile Property gained 0.53 percent to 3.8 HK dollars. (7.7425 HK dollars = 1 U.S. dollars)