Tuesday, September 11 07:22:19
Hong Kong and China shares fell for the first time in four sessions today, as investors took profits on a rally sparked by newly approved infrastructure plans while remaining cautious ahead of key events in Europe and the United States. A German court ruling on the legality of the European bailout fund is due later in the day and a two-day U.S. Federal Reserve meeting ends on Thursday, with market players watching for signs of a third round of quantitative easing.
General gloom over China's economy -- on track for a seventh-straight quarterly slowdown -- also weighed on the sentiment despite August loan growth in China exceeding expectations. Trade and industrial output figures have been anaemic while inflation has risen, possibly limiting Beijing's scope for monetary easing. "Fundamentals haven't improved. In fact the latest set of data suggests the slowdown in the Chinese economy could yet worsen, so it's tough to look beyond the short term," said Edward Huang, equity strategist at Haitong International Securities.
The CSI300 Index of the top Shanghai and Shenzhen listings fell 1 percent at midday after jumping 5.8 percent in the preceding three sessions. The Shanghai Composite Index fell 0.9 percent. The Hang Seng Index shed 0.6 percent after rising 3.6 percent over the previous three sessions. The China Enterprises Index of the top Chinese listings in Hong Kong slid 1.1 percent. ( C) Reuters