HSI Down 2.2%; Funds Pulling Out - Fund Manager
HSI falls more in afternoon, now down 2.2% at 21606.27, earlier touching fresh 3-month low of 21555.53.
"I think what you are seeing here is money leaving Hong Kong. Part of the reason for higher Hibor (recently) is money leaving Hong Kong...bit of liquidity being drained," says HK-based fund manager.
Says inflation will have rattled some big funds into cutting back exposure to Asia, and HK/China is biggest, most liquid market in region outside of Japan, making it "easy to pull some cash from here." Blue chips extend falls: Cathay Pacific (0293.HK) down 5.8% at HK$14 after profit warning, parent Swire (0019.HK) off 6.5% at HK$74.55. Others falling by more than 3% include New World Development (0017.HK), Bank of East Asia (0023.HK), Sino Land (0083.HK), Ping An (2318.HK), China Life (2628.HK). Volume higher than recent average at HK$63.105 billion
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