HONG KONG, March 5 (Reuters) - Hong Kong shares
declined on Monday, with financials and growth-sensitive sectors
weak after Beijing gave its lowest annual GDP growth target in
eight years, and sentiment was also hit by expectations of more
The Hang Seng Index closed down 1.38 percent at
21,265.31. The China Enterprises Index of the top
mainland listings in Hong Kong ended down 2.28 percent at
The Shanghai Composite Index finished down 0.64
percent at 2,445. A-share turnover was the highest in four
* Chinese financials and growth-sensitive sectors were hit
after Premier Wen Jiabao cut the country's 2012 GDP growth
target to 7.5 percent from the longstanding 8 percent to find
leeway for promised economic and welfare reforms ahead of a
leadership transition later this year.
Market watchers said investors were taking profit after GDP
and inflation targets fell largely within expectations, but that
it was likely to mean less aggressive monetary policy easing in
China. Industrial and Commercial Bank of China Ltd
fell 2.7 percent to close at the lowest since Feb. 14.
* Expectations that more companies could look to take
advantage of the rally this year to raise funds further weighed
on the market. American International Group Inc
announced a $6 billion stake sale in Asia subsidiary AIA Group
Ltd at a 6 percent discount, sparking fears that any
other placements could be priced at a bigger discount than AIA,
Asia's third-largest insurer and seen as a better quality name.
Although trading in AIA was suspended on Monday, its
insurance peers took a hit. China Life Insurance Co Ltd
lost 4.4 percent and Ping An Insurance (Group) Co of
China Ltd fell 3 percent.
* Sun-Art Retail Group Ltd, among the largest
hypermart operators in China, slumped 6.7 percent in more than
three times its 30-day average volume after posting a sharp
slowdown in same-store sales for the second half of 2011.
(Reporting by Clement Tan and Vikram Subhedar; Editing by Chris