Concerns over the worsening economic outlook and expectations of an increase in the jobless rate sent property stocks lower, dragging Hong Kong's benchmark index lower Wednesday.
The Hang Seng Index fell 100.1 points, or 0.8 percent, to 12, 815.80 after trading between 12,738.53 and 13,179.33 during the session.
Turnover reached 38.91 billion Hong Kong dollars (5.03 billion U.S. dollars), down from 44.84 billion Hong Kong dollars (5.79 billion U.S. dollars) Tuesday.
Property stocks underperformed the main index as investors focused on concerns about the local economy, which has fallen into recession. Analysts and economists expect it to rise in the coming months as the global crisis deepens. J.P. Morgan said in a research note Tuesday investors should avoid the property sector.
The property sub-index fell 1.55 percent. Henderson Land dropped 5.4 percent to 23.85 HK dollars, while Sun Hung Kai Properties fell 3 percent to 53.35 HK dollars.
Bourse operator Hong Kong Exchanges and Clearing defied the market downtrend on bargain hunting, rising 0.9 percent to 56.50 HK dollars. The stock had fallen 17 percent in the first two sessions this week, after Morgan Stanley slashed its target price on the stock to 38 HK dollars on Monday. But traders expect the stock's rebound to be fleeting as the market turnover shrinks.
Hong Kong-listed China power producers outperformed, with China Resources Power rising 4.9 percent to 14.46 HK dollars, Huadian Power gaining 3.6 percent to 1.45 HK dollars and Datang Power jumping 5.5 percent to 3.06 HK dollars.
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