Hong Kong stocks fall to one year low

Hong Kong stocks fell modestly on Thursday to the lowest level since August 2007 amid worries about the sluggish global economy.

The benchmark Hang Seng Index weakened 39.68 points, or 0.19 percent, to open at 20,545.38 and repeatedly tested new lows between intra-day high 20,621.48 and intra-day low 20,356.51 before dropping 195.58 points, or 0.95 percent, to close at 20,389. 48.

Turnover rose to 56.46 billion HK dollars from Wednesday's 56.09 billion HK dollars .

Among 43 components of the Hang Seng Index, declining stocks outnumbered advancers 35 to 6, with two unchanged.

Huiyuan Juice, one of China's leading fruit and vegetable juice producer, softened 7.68 percent to 10.1 HK dollars after its stunning upsurge of 164.25 percent on Wednesday following Coca- Cola's purchasing offer of 17.92 billion HK dollars, or about 2.5 billion U.S. dollars.

Analysts said Coca-Cola's offer may have to face anti-monopoly hearing before the deal is approved by Huiyuan's board and regulating authorities in the Chinese mainland.

Market heavyweight HSBC, which accounts for the largest weighting of the Hang Seng Index, dipped 0.16 percent to 121.4 HK dollars.

China Mobile, the largest stock measured by market capitalization, continued its recent weak performance by further falling 2.78 percent to 84 HK dollars, dragging the index by 62.01points alone.

Hong Kong Exchanges and Clearing Limited, the market's sole operator, dropped 1.25 percent to 98.5 HK dollars.

China Communications Construction, the country's leading transportation infrastructure builder, dived 13.67 percent to 10. 74 HK dollars due to the downgrade by brokerage.

Oil companies remained weak as global oil prices were steady around 109 U.S. dollars a barrel in Asia. PetroChina, or the country's largest oil producer, skid 0.52 percent to 9.58 HK dollars. Sinopec, Asia's largest oil refiner, appeared to have failed from getting a boost from the falling oil prices, 1.5 percent to 7.24 HK dollars. CNOOC, China's largest offshore oil producer, moved down 0.94 percent to 10.6 HK dollars.

Local property companies in Hong Kong were lower. Cheung Kong, one of Hong Kong largest house developers controlled by tycoon Li Ka-shing, slid 0.62 percent to 111.5 HK dollars. SHK Property, thelargest house developer in Hong Kong, dropped 3.16 percent to 101.3 HK dollars. Henderson Land fell 1.27 percent to 46.65 HK dollars. New World Development shed 0.18 percent to 11.34 HK dollars. Sino Land plunged 4.55 percent to 13 HK dollars. Hang Lung Property was unchanged at 24 HK dollars.

China Enterprise Index, or H-shares composed of companies registered in the Chinese mainland, lost 151.92 points, or 1.37 percent, to 10,924.91.

China's banks and insurance companies were mixed. ICBC, China's largest lender, slid 0.19 percent to 5.18 HK dollars. Bank of China, the country's second largest bank, gained 0.92 percent to 3. 31 HK dollars. China Construction Bank was unchanged at 6.13 HK dollars. Bank of Communications went down 0.35 percent to 8.65 HK dollars. China Merchants Bank softened 1.23 percent to 24.15 HK dollars. China Life, the country's largest insurer, was down 0.35 percent to 28.85 HK dollars. Ping An, the second largest insuranc ecompany, fell 1.9 percent to 54.25 HK dollars.

Source:Xinhua