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Hong Kong stocks end 1.20% lower

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(Globalpost/GlobalPost)

Hong Kong stocks ended 1.20 percent lower Tuesday, in line with a regional sell-off, as property counters were hit by concerns the government will introduce fresh measures to cool home prices in the city.

The benchmark Hang Seng Index lost 260.43 points to close at 21,354.66 on turnover of HK$58.24 billion (US$7.51 billion).

Shanghai was closed for a public holiday.

The index has slumped more than eight percent since its May 20 close.

Investors moved out of property firms amid fears policymakers will move to cap prices further. In recent months the government has introduced a series of cooling measures, including doubling the stamp duty on second-home purchases.

And on Monday reports said Housing Authority member Stanley Wong Yuen-fai had suggested further government intervention was needed unless prices fall at least 20 percent.

On Tuesday blue-chip developer Sino Land tumbled 4.2 percent to HK$10.56 and Henderson Land Development fell 4 percent to HK$44.60.

Adding to selling pressure are growing concerns about the Chinese economy, with the latest trade and investment data released at the weekend indicating a slowdown.

"I think the market is in a little bit of a panic about what happens when Asian markets reopen," said First Shanghai market strategist Linus Yip.

Markets in mainland China are closed until Thursday for a public holiday, meaning they have not yet had a chance to react to the weekend's results.

Chinese plays listed in Hong Kong sank, with the Hang Seng China Enterprises Index losing 1.7 percent.

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http://www.globalpost.com/dispatch/news/afp/130611/hong-kong-stocks-end-120-lower-0