- Title: CHINA: Hong Kong shares close down 1.6 pct at lowest in a month
- Date: 15th November 2012
- Summary: HONG KONG, CHINA (NOVEMBER 15, 2012) (REUTERS) BELL RINGING AT HONG KONG STOCK EXCHANGE TRADERS AT STOCK EXCHANGE STOCK PRICES AND THE HANG SENG INDEX ON ELECTRONIC BOARD (SOUNDBITE) (English) LU TING, CHINA ECONOMIST FROM BANK OF AMERICA-MERRILL LYNCH, SAYING: "To achieve about seven percent of growth for the rest of the decade is still quite challenging. So that is the first task to sustain high economic growth, then it is also about allocation of national wealth and national income. Just to achieve high economic growth without taking care of allocation, wealth distribution will create a problem for the long term and mainly to social stability. So that is the two major tasks." TRADER TRADERS STOCK PRICES ON ELECTRONIC BOARD/HANG SENG CHINA ENTERPRISES INDEX
- Embargoed: 30th November 2012 12:00
- Keywords:
- Location: China
- City:
- Country: China
- Topics: Economy
- Reuters ID: LVAA1AKSYETINC5M3DPGT8T6UHAC
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- Story Text: Hong Kong shares ended at their lowest in a month on Thursday (November 15), reversing the previous day's gains as investors cut risk over uncertainty about policies and reform in the world's second-largest economy after China unveiled a new batch of leaders.
The Hang Seng Index closed down 1.6 percent at 21,108.9, the lowest close since October 11. The China Enterprises Index of the top Chinese listings in Hong Kong finished down 2 percent at 10,199.6.
China's ruling Communist Party unveiled an ageing, conservative new leadership line-up on Thursday unlikely to take drastic action to tackle pressing woes like growing social unrest, environmental degradation and corruption.
Aside from new party chief Xi Jinping, premier-in-waiting Li Keqiang and vice-premier in charge of economic affairs Wang Qishan, considered cautious reformers, the elite decision-making Politburo Standing Committee members are all conservative leaning.
Some market watchers cautioned the new leaders would face challenges to keep up the country's growth rate.
"To achieve about seven percent of growth for the rest of the decade is still quite challenging. So that is the first task to sustain high economic growth, then it is also about allocation of national wealth and national income. Just to achieve high economic growth without taking care of allocation, wealth distribution will create a problem for the long term and mainly to social stability. So that is the two major tasks," said Lu Ting, China economist from Bank of America-Merrill Lynch in Hong Kong.
On the mainland, the CSI300 Index of the top Shanghai and Shenzhen listings closed down 1.3 percent, while the Shanghai Composite Index fell 1.2 percent. Both indexes closed at their lowest since September 26. - Copyright Holder: REUTERS
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