SINGAPORE: Hong Kong stocks swung between gains and losses as Spain sought funding from European authorities to bail out its third-biggest lender and China’s cabinet agreed to revive incentives for consumers to trade old cars for new ones.
The Hang Seng Index dropped 0.1% to 18,787.09 as of 10:25 a.m. in Hong Kong, having swung between losses of as much as 0.4% and gains of 0.1%. The Hang Seng China Enterprises Index of mainland stocks added 0.5% to 9,693.63.
The benchmark Hang Seng Index is heading for an 11% decline this month, the most since September, on concern Europe’s debt crisis will worsen and amid signs China’s economic slowdown is deepening. Shares on the gauge were valued at 9.6 times estimated earnings on average as of yesterday, compared with 12.6 times for the Standard & Poor’s 500 Index and 10.1 times for the Stoxx Europe 600 Index.
HSBC Holdings Plc, Europe’s biggest lender by market value, slipped 1%. Dongfeng Motor Group Co., the Chinese partner of Nissan Motor Co. and Honda Motor Co., climbed 3.4%. Shui On Land Ltd. jumped 7.3% after the developer controlled by billionaire Vincent Lo said it plans to spin off its Xintiandi entertainment complex unit in a separate listing in Hong Kong. (Bloomberg/T05)