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Global sell off hits stocks in HK

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decline_9 May 7, 2012 (Chinavestor) A global sell off hit Chinese stocks in Hong Kong but investors in Shanghai paid little attention to election news from Europe. The Hang Seng Index (INDEXHANGSENG:.HSI) tumbled 549.3 points or 2.7%, the most in 2012, after Greek parliamentary elections spurred more trouble ahead for the EURO zone. But the decline wasn't as broad as in previous months, three components of the 42 member Hang Seng Index (INDEXHANGSENG:.HSI) managed to eke out some gains. Oversold stocks continued to gain traction, like Aluminum Corp. of China (HKG:2600) (NYSE:ACH) and China Eastern Airlines (HKG:0670) (NYSE:CEA). Both companies are triple lifted with listings in Hong Kong, Shanghai and New York.

 

Another key gauge, the Hang Seng China enterprise Index (INDEXHANGSENG:.HSCEI), fell 2.83% in a broad sell-off. Each and every component of the index fell except for Aluminum Corp. of China (HKG:2600).

But investors in Shanghai paid attention to presumed government stimulus and regularity changes lowering investment costs. Investors in China expect the government to resort some sort of a stimulus, such as easing bank reserve ratios, to stimulate the economy in face of a global economic slowdown. The Shanghai Composite Index (SHA:000001) was virtually unchanged for two days in a row despite turbulent global markets. Aluminum Corp. of China (SHJA:601600) rose the most among the 50 largest components of the Shanghai Composite Index (SHA:000001). The stock jumped 4.2% with heavy volume.

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