Hong Kong's Stocks Fall, Led by Commodity Producers; CLP Slides

By Chua Kong Ho

Aug. 12 (Bloomberg) -- Hong Kong stocks fell, sending the Hang Seng Index to a third-straight decline, as commodity producers retreated on lower prices for copper and gold.

Zijin Mining Group Co., owner of China's largest gold mine, and Jiangxi Copper Co. declined as the metals slumped to their lowest since December. China Mobile Ltd., the world's largest phone carrier by market value, dropped after Citigroup Inc. cut its price estimate. CLP Holdings Ltd., Hong Kong's biggest power supplier, snapped a four-day winning streak after first-half profit decreased.

``Commodity stocks are facing pressure as demand softens,'' said Daphne Roth, Singapore-based head of equity research in Asia at ABN Amro Private Bank, which oversees about $30 billion of Asian assets.

The Hang Seng Index lost 218.45, or 1 percent, to 21,640.89 at the close, after gaining as much as 2.1 percent. Four stocks fell for every three that climbed on the index. Futures slid 1.1 percent to 21,555.

Shimao Property Holdings Ltd. rose 1.4 percent to HK$8.60, pacing gains by real-estate shares after the Standard newspaper said the company is ``confident'' of reaching its 2008 sales target and inflation in China slowed last month, stoking speculation lending curbs may be eased.

Sun Hung Kai Properties Ltd., Hong Kong's largest developer, gained 1.4 percent to HK$112.50. Cheung Kong Holdings Ltd., the developer controlled by billionaire Li Ka-shing, advanced 0.6 percent to HK$109.90.

China Inflation

The Hang Seng Property index rose 0.7 percent, the only one of the four industry groups on the Hang Seng to advance. China's inflation cooled for a third month on slower food-price gains. The consumer price index rose 6.3 percent in July from a year earlier, the statistics bureau said today, after increasing 7.1 percent in June.

Zijin dropped 5.8 percent to HK$4.52, the lowest since June 8, 2007. Zhaojin Mining Industry Co., a Shandong-based gold producer, fell 9.5 percent to HK$5.75. Jiangxi Copper slid 5.1 percent to HK$10.50, the lowest close since April 4, 2007.

Gold fell 2.6 percent to $802.27 an ounce, the lowest since Dec. 21. Copper slid 1.4 percent to close at 56,420 yuan ($8,220) a ton in Shanghai.

China Mobile fell 4.6 percent to HK$94.50. Citigroup lowered its share-price estimate to HK$120 from HK$150, citing ``regulatory headwinds'' and increased competition. CLP dropped 0.8 percent to HK$66.85, after reporting first-half profit dropped 8.5 percent to HK$5.61 billion ($718 million) due to a smaller one-off gain.

The Hang Seng China Enterprises Index, which tracks so- called H shares of Chinese mainland companies, declined 1.7 percent to 11,445.55.

To contact the reporter responsible for this story: Chua Kong Ho in Shanghai at kchua6@bloomberg.net