Hong Kong shares slide to 4-week low on China growth concerns

Hong Kong shares slide to 4-week low on China growth concerns

Last Updated: Fri, May 24, 2013 09:10 hrs

* HSI -0.2 pct, H-shares -0.2 pct, CSI300 +0.6 pct

* Hong Kong shares extended losses to lowest in almost a month

* China shares posted fourth-straight weekly gain

* China property weak on fears of China's slowdown

By Yimou Lee

HONG KONG, May 24 (Reuters) - Hong Kong shares extended losses to fall to their lowest in almost a month on Friday with the property sector weak over concerns that China's economic recovery may be stalling.

The Hang Seng Index slipped 0.2 percent to 22,618.7 points, the lowest level since April 29. The China Enterprises Index of the top Chinese listings in Hong Kong lost 0.2 percent. On the week, they were down 2 and 2.7 percent, respectively.

The CSI300 of the leading Shanghai and Shenzhen A-share listings rose 0.6 percent, while the Shanghai Composite Index also closed up 0.6 percent at 2,288.5 points. On the week, they both rose 0.2 percent in their fourth-straight weekly gain.

"The market stabilized today, but investors remained quite cautious," said Ben Kwong, chief operating officer at securities house KGI Asia. "They don't have any motivation to buy at this moment," he said.

Turnover in Hong Kong was at its lowest in three weeks, excluding storm-shortened trade on May 22. Shanghai's turnover decreased to its lowest in seven sessions but was still some 30 percent above its 20-day average.

China's flash HSBC Purchasing Managers' Index (PMI) shrank for the first time in seven months in May as new orders fell, slipping under the 50-point level demarcating expansion from contraction.

The survey prompted speculation that Beijing may launch more stimulus to put economic recovery on a firmer scale.

But sources close to the government said China's plan to spend $6.5 trillion on urbanisation to bolster the economy is running into snags, as top leaders fear another spending binge could push up local debt levels and inflate a property bubble.

The National Development and Reform Commission said on Friday it will release details on urbanization plans this year, state media reported.

Chinese property developers listed in the mainland were broadly weak. China Vanke fell 0.8 percent in Shenzhen after testing its highest since Feb. 5 on Thursday. In Hong Kong, China Overseas Land dropped 1.7 percent, while Poly Property fell fell 1 percent.

Lenovo Group Ltd rose 3.8 percent to HK$7.65, the highest since March 28, helped by a slew of price target upgrades by brokerages after the Chinese PC marker reported a forecast-beating quarterly profit.

Analysts said the company was on the right track diversifying into mobile gadgets though it faced stiff competition from existing players such as Samsung Electronics Co Ltd and .

Lenovo's Chairman and CEO said on Thursday it planned to ship 50 million smartphones and 10 million tablet PCs, up from 30 million and two million respectively during the previous fiscal year.

Shares in China Huiyuan Juice Group Ltd fell 4.3 percent after the company said it would buy a fruit juice concentrates supplier from controlling shareholder China Hui Yuan Juice Holdings Co Ltd for HK$4.9 billion ($631.17 million) to secure key raw materials and generate new revenues.

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