Hong Kong shares end lower

Hong Kong stocks ended down 0.62 percent on Wednesday as recent gains in mainland banks triggered profit-taking in lenders like Bank of China, whose shares debuted in Shanghai to a strong reception.
In another debut, Shimao Property Holdings Ltd exceeded expectations, as many believed the Shanghai-focused developer would hold near to its initial offer price amid China's efforts to cool its property market. Shimao, the day's second-most active stock, ended the day at HK$6.60 for a 5.6 percent gain over its IPO price of HK$6.25.
The benchmark Hang Seng index closed down 101.80 points at 16,267.18 on turnover of HK$22.6 billion (US $2.9 billion), nearly matching Tuesday's HK$22.1 billion. "It's quiet today," said Peter Lai, director at DBS Vickers. "People are waiting for the US payroll figures this week and investors are still cautious."
Analysts said the closing of US markets for a national holiday also subdued trade, while news that North Korea test-fired missiles on Wednesday dampened sentiment.
The China Enterprises index of H-shares, or Hong Kong-listed shares in mainland companies, fell 1.42 percent to 6,717.86 after a 10-day gaining streak during which it had gained more than 700 points.
Mainland lenders slumped following their recent run-up. Bank of China, the day's most heavily traded stock, slid 3.4 percent to HK$3.55 as its domestic shares ended up 23 percent in the Shanghai stock market's biggest debut.
Investors used the news as an excuse to take profit in Bank of China's Hong Kong-listed shares, said Jackson Wong of Tanrich Securities. "But I don't expect the shares to go lower than $3.40-3.45. People are bullish on this sector," he said. Bank of Communications Co Ltd dropped 1.5 percent to HK$4.975 and China Construction Bank Corp sank 2.8 percent to HK$3.475.
Power companies were mixed, as China Shenhua Energy Co gained 1 percent in heavy trade to HK$14.65. China's biggest coal miner, which also runs power plants, said it had raised the price at which it sold electricity to help offset the rising cost of coal and higher railway transportation expenses.
But China Resources Power Holdings Co Ltd tumbled 7.4 percent to HK$6.30 after announcing new tariffs that were slightly lower than some had expected, leading Goldman Sachs to trim its earnings forecast for 2006 by 2.5 percent. The stock's strong price performance in recent days also pressured the shares.