HSI Falls 168 pts, Missing 22,000 pts

Hong Kong bourses followed ADR to open down 74 pts to 21,945. Hang Sang Index saw a widened decline dragged by stocks that are highly sensitive to interest rate. The benchmark index finished the morning trade lower 168 pts or 0.8% to 21,851. Hang Seng China Enterprises Index slid 96 pts or 1% to 9,374. Half-day market turnover amounted to $30.34 billion. 

Stocks that are highly sensitive to interest rate were under pressure on the concern that the interest rate will hike at a faster than expected pace. HSBC HOLDINGS (00005.HK)  -0.200 (-0.313%)    Short selling $37.32M; Ratio 5.767%   faded 0.5% to $63.65. HANG SENG BANK (00011.HK)  -1.400 (-0.952%)    Short selling $9.26M; Ratio 23.872%   and BOC HONG KONG (02388.HK)  -0.350 (-1.264%)    Short selling $23.09M; Ratio 15.909%   dipped 0.8% and 2% to $145.8 and $27.15 respectively. Three major real estate stocks fell 0.2%-0.9% since only 100 deals were recorded for the first week following interest rate hike. LINK REIT (00823.HK)  -0.050 (-0.100%)    Short selling $5.09M; Ratio 4.280%   recorded $770 million gain after disposing five shopping mall properties. The stock held steady at $50.25. Brokers prefer POWER ASSETS (00006.HK)  -0.650 (-0.942%)    Short selling $2.56M; Ratio 3.840%   than CKI HOLDINGS (01038.HK)  -0.300 (-0.482%)    Short selling $26.31M; Ratio 38.199%   in which the former held steady and the latter inched down 0.4%. Reportedly, the Mainland tightened the insurance purchasing caps of VISA and MasterCards, sending AIA (01299.HK)  -0.550 (-1.239%)    Short selling $90.34M; Ratio 13.374%   lower 1.5% to $43.75.

Technology stocks were on a decline. TENCENT (00700.HK)  -1.700 (-0.924%)    Short selling $45.85M; Ratio 5.078%   continued lower 0.5% to $183. Shares in AAC TECH (02018.HK)  -0.650 (-0.947%)    Short selling $15.27M; Ratio 21.380%   dived 1.5%. Chinese telecom stocks traded mixed. CHINA MOBILE (00941.HK)  -0.650 (-0.800%)    Short selling $41.97M; Ratio 9.331%   faded 0.4% to $80.9. CHINA UNICOM (00762.HK)  -0.070 (-0.771%)    Short selling $16.85M; Ratio 20.270%   and CHINA TELECOM (00728.HK)  +0.010 (+0.275%)    Short selling $3.62M; Ratio 12.992%   were relatively stabilized. Chinese developers retreated. CHINA RES LAND (01109.HK)  -0.320 (-1.812%)    Short selling $4.11M; Ratio 5.294%   and CHINA OVERSEAS (00688.HK)  -0.300 (-1.432%)    Short selling $20.88M; Ratio 9.219%   receded 1.5% and 1.9%. CHINA VANKE (02202.HK)  -0.620 (-3.206%)    Short selling $16.22M; Ratio 14.581%   terminated the asset restructuring plan with Shenzhen Metro Qianhai International Development Co., Ltd. (SZMC). The stock plummeted 4% at midday to $18.48, hitting over four-month low.

Chinese financials gave up. Four major banks dropped 0.5%-1.5%. Chinese insurance stocks and brokers broadly reported a decline of 
1%-2%. CNOOC (00883.HK)  -0.080 (-0.794%)    Short selling $7.56M; Ratio 5.377%   and PETROCHINA (00857.HK)  +0.040 (+0.680%)    Short selling $37.56M; Ratio 16.902%   lifted 0.2% and 0.9%.