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Hong Kong stocks close 4.7% lower

(Xinhua)
Updated: 2009-03-30 19:19

Profit-taking in Chinese banks after China Construction Bank's weaker-than-expected 2008 results led Hong Kong shares sharply lower Monday.

The benchmark fell 663.17 points, or 4.7 percent, to 13,456.33 after trading between 13,413.48 and 13,893.15.

Related readings:  Chinese shares close 0.7% lower  Guotai Fund to launch Nasdaq-linked fund  Hong Kong stocks close 0.08% higher  Bank shares lead market fightback

Turnover fell to HK$51.53 billion ($6.66 billion) from Friday's HK$58.90 billion.

The decline in Hong Kong shares Monday accelerated in the afternoon, after the Obama administration said Chrysler would be hard-pressed to survive on its own.

China Construction Bank slumped 9.6 percent to HK$4.25 after its 2008 net profit rose to 92.60 billion yuan from 69.05 billion yuan. The stock contributed 112.29 points to the Hang Seng Index's decline. CIMB downgraded it to neutral from outperform on concerns about the bank's loan quality.

China Construction Bank's fall led to profit-taking in other Chinese banks, with Industrial and Commercial Bank of China falling 6.2 percent to HK$3.93 after a 27 percent rise in the previous five sessions.

Bank of China dropped 6.4 percent to HK$2.47 after a 16 percent gain in the previous five sessions.

Aluminum Corp of China Ltd, or Chalco, tumbled 12 percent to HK$4.56 after reporting its 2008 net profit plunged to just 9.2 million yuan from 10.75 billion yuan on sharp declines in metal prices.

China Shenhua Energy, China's largest integrated coal producer by output, fell 5.7 percent to HK$17.38. It said its net profit in 2008 rose to 26.64 billion yuan from 20.58 billion yuan.