Hong Kong stocks turned lower in late Monday morning trading, as weakness in some banking shares weighed on the market. The Hang Seng Index (HSI) at 22,991, -167.85, -0.72%) reversed from early gains to trade down 0.3% at 23,086.7, while the Hang Seng China Enterprises Index was also down 0.3% at 12,932.5.
China Construction Bank Corp extended losses to trade down 2.7% after posting earnings in line with expectations, as concerns about tighter liquidity in mainland China dragged on sentiment. Similarly, Industrial & Commercial Bank of China Ltd. lost 1.1% ahead of its own earnings announcement later this week, and China Merchants Bank Co. fell 2.5%, though Bank of Communications Co. managed to gain 0.4%. Sinopec, officially called China Petroleum & Chemical Corp. fell 1.3% after its 14% increase in 2010 profit fell short of expectations. Mainland shares rose despite the weakness in Hong Kong, with the Shanghai Composite up 0.8% at 3,001.48.(MW/HQM)