Hong Kong shares suffer worst day in 3 mths, Sinopec sinks

Last Updated: Tue, Feb 05, 2013 08:20 hrs

HONG KONG, Feb 5 (Reuters) - Hong Kong shares posted their worst loss in three months on Tuesday, weighed by a 6.4 percent slide in China Petroleum and Chemical Corp (Sinopec) after a $3.1 billion new share placement.

The Hang Seng Index ended down 2.3 percent at 23,148.5, its worst single-day loss since Nov. 8, unmoved by a rebound over the day in mainland shares. The China Enterprises Index of the top Chinese listings in Hong Kong shed 2.8 percent.

In the mainland, the CSI300 of the top Shanghai and Shenzhen A-share listings posted a third-straight daily gain, rising 0.9 percent, rebounding from earlier losses. The Shanghai Composite Index stretched a winning streak into a seventh-day, up 0.2 percent.


* Sinopec shares in Hong Kong dived 6.4 percent to its lowest close since end-December but held above the HK$8.45 placement price, signalling robust demand for the 2.85 billion new shares. A source familiar with the matter said they were sold to a group of about 10 investors that included some of the world's largest institutional investors and global fund managers.

* The territory's property developers were hit by comments from the central bank's chief that more measures could be introduced to cool the property market as elevated household debt is worsening risks from price gains.

* China Railway Construction jumped 3.2 percent after the official China Securities Journal newspaper reported that Beijing will likely introduce a development plan for 120 ports, which could drive tremendous investment in infrastructure such as transportation and energy pipelines.

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