 Re: Latest Stock News
Hong Kong Stocks Drop; HSBC Holdings, Bank of China Decline
2007-11-26 21:54 (New York)
By Hanny Wan
Nov. 27 (Bloomberg) -- Hong Kong stocks fell, led by HSBC
Holdings Plc after the lender said it will bail out its two
structured investment vehicles by taking on $45 billion of their
assets to avoid a fire sale.
Bank of China Ltd. was headed for its lowest close in two
months after Singapore's state-owned Temasek Holdings Pte. sought
as much as HK$4.46 billion ($573 million) to sell part of its
stake in the lender, and after Goldman, Sachs & Co. cut its
rating on the stock to ``neutral'' from ``buy.''
Sun Hung Kai Properties Ltd. declined after it began trading
without the right for new investors to receive a final dividend.
The Hang Seng Index lost 891.33, or 3.2 percent, to
26,735.29 as of 10:27 a.m. local time. The Hang Seng China
Enterprises Index, which tracks 43 so-called H shares of Chinese
companies listed in Hong Kong, fell 3.3 percent to 15,994.13.
HSBC, Europe's biggest bank, slid HK$3.70, or 2.8 percent,
to HK$129.80. Investors in Cullinan Finance Ltd. and Asscher
Finance Ltd. will be allowed to exchange their holdings in the
SIVs for debt issued by a new company backed by loans from HSBC,
the bank said yesterday.
HSBC may also have to set aside a further $12 billion for
bad debts because of customer defaults at its U.S. subprime
lender Household International Inc., analysts led by Roy Ramos at
Goldman wrote in a note dated Nov. 24. Goldman lowered its rating
on HSBC to ``sell'' from ``neutral.''
Share Sale
Bank of China, the nation's third-largest lender, lost 30
cents, or 7.1 percent, to HK$3.94, set for its lowest close since
Sept. 19. Asia Financial Holdings Pte, a unit of Temasek, is
offering international institutions 1.08 billion existing shares
in Bank of China at HK$4.09 to HK$4.12, according to an e-mail to
investors yesterday.
Goldman lowered its rating on Bank of China because of
factors including the lender's ``potential loss and negative
stock sentiment due to its subprime exposure,'' analysts at the
brokerage including Ning Ma said in a report today.
Sun Hung Kai, Hong Kong's No. 1 property developer by market
value, slipped HK$6, or 4.1 percent, to HK$139.40. Investors who
buy the stock from today will not qualify for a HK$1.60 final
dividend.
--Editor: Mark McCord  Like Photography? Visit
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Last edited by qing02051981 : 27-11-2007 at 11:18 AM.
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