Hong Kong shares close 1.46 percent lower

HONG KONG: Hong Kong shares fell 1.46 percent Wednesday on concern over the eurozone and following heavy losses in China amid rumours a new international board will soon be set up in Shanghai.

The benchmark Hang Seng Index shed 266.85 points to 17,989.35 on turnover of HK$77.93 billion ($10.00 billion).

And in Shanghai the composite index, which covers both A and B shares, tumbled 3.27 percent, or fell 78.98 points, to 2,333.41 on turnover of 72.2 billion yuan ($11.4 billion).

There were also concerns ahead of the release in Beijing of China's manufacturing activity data for November.

Preliminary figures last week from HSBC were the worst for 32 months, while the official numbers are also expected to come in weak Thursday.

However, Steven Leung, director of institutional sales at UOB KayHian, said: "The weaker the PMI numbers, the stronger will be expectations of policy response such as a reserve-requirement-ratio cut."

Insurer Ping A fell 5.3 percent to HK$51.15 while China Life lost 3.5 percent to HK$19.26.

China Construction Bank slid 0.8 percent to HK$5.26 while HSBC dropped 2.0 percent to HK$57.45.

Fashion giant Prada gained 2.7 percent to HK$36.40 after net profit for the third quarter surged 75 percent from a year earlier.

The launch of an global board in Shanghai "remains as speculation" but the talk on Wednesday "just defeated investors' slim confidence in the market", Zhang Qi, an analyst at Haitong Securities, told AFP.

China's B shares fell sharply on concerns that the international board, which will allow foreign companies and overseas-registered Chinese firms to list, would weaken demand for the foreign currency-denominated market.

Talk over the launch periodically arises, and such speculation along with the rise in domestic companies listing overseas has hit demand for B shares.

Shanghai Lujiazui Finance and Trade Zone Development's B shares plunged by the 10.0 percent daily limit to $0.893, while Jinjiang International Hotels' B-shares dropped 9.6 percent to $1.02.

Shipping firms also fell heavily on concerns that the eurozone crisis and slowing domestic growth will hurt demand.

China COSCO slumped 4.7 percent to 5.86 yuan and China Shipping Development lost 5.5 percent to 6.53 yuan.