HK stocks end down on profit-taking on March 5

Special Report:Global Financial Crisis

HONG KONG, March 5 (Chinese media) -- Profit-taking in blue chips and

disappointment due to a lack of fresh economic stimulus measures from Beijing

sent Hong Kong shares lower Thursday, led by China Mobile.

The benchmark Hang Seng Index fell 119.91 points, or 0.97 percent, to

12,211.24 after trading between 12,163.55 and 12,488. 33 during the session.

Turnover fell to 43.09 billion HK dollars (5.56 billion U.S. dollars) from

Wednesday's 44.96 billion HK dollars (5.80 billion U. S. dollars).

Without any new stimulus in China, the local market will likely fall

further in the short term, because more companies are expected to issue

disappointing earnings this month, traders said.

Experts felt disappointed that Premier Wen hasn't announced any new

stimulus in his speech at the National People's Congress. Apart from more

details on China's recently announced 4 trillion RMB (585.09 billion U.S.

dollars) stimulus package, market participants expect Beijing to disclose new

stimulus during the annual meeting of China's parliament, which would bring the

stimulus package to a total of 6 trillion RMB(877.64 billion U.S. dollars) to 8

trillion RMB(1.17 trillion U.S. dollars). The meeting began Thursday and is

scheduled to end March 13.

China Mobile fell 1.9 percent to 66.45 HK dollars on profit- taking and

concerns about competition and a slowing economy, after rising 3.6 percent in

the last two sessions. It accounted for 32. 72 points of the Hang Seng Index's

119.91-point fall.

Also dragging the local market lower was a fall in Hong Kong bourse

operator Hong Kong Exchanges and Clearing, which ended 4.6 percent lower at

56.85 HK dollars after gaining 6.6 percent in the last session.

PetroChina dropped 1.7 percent to 5.26 HK dollars on profit- taking, after

rising 3.7 percent Wednesday.

Heavyweight HSBC bucked the broad decline on bargain hunting. The banking

giant rose 1.4 percent to 44.80 HK dollars after slumping 22.4 percent over the

past two days.

The finance sub-index went down 13.23 points or 0.08 percent to 17,302.10.

The properties sub-index fell 270.30 points or 1.78 percent at 14,927.10.

The commerce and industry sub-index went down 105.20 points or 1.51 percent

to 6,884.49.

The utilities sub-index fell 532.63 points or 1.52 percent at 34,560.59.

(7.75 HK dollars = 1 U.S. dollar)

Premier Wen delivers gov't work report
Chinese premier says economic slowdown becoming major problem in

China

BEIJING, March 5 (Chinese media) -- Chinese Premier Wen Jiabao admitted Thursday

that the country is facing unprecedented difficulties and challenges, with

continuous drop in economic growth rate due to the impact of the global

financial crisis becoming a major problem.

When delivering a government report to the annual session of the Chinese

legislature, he said that, the global financial crisis continues to spread and

get worse. Demand continues to shrink on international markets; the trend toward

global deflation is obvious; and trade protectionism is resurging. Full story