Hong Kong Stocks Fall as Automakers, Property Developers Drop

Hong Kong stocks fell for the first time in three days as automakers declined on higher oil prices and slower sales, and as property developers retreated.

Dongfeng Motor Group Co., Chinese partner of Nissan Motor Co., sank 3.2 percent. Aluminum Corp. of China Ltd., the country’s No. 1 producer of the metal, dropped 1.2 percent after metal prices fell. China Resources Land Ltd., a state-controlled developer, retreated 1.2 percent after the nation’s housing ministry said it is asking local governments to set price- control targets.

The Hang Seng Index dropped 0.8 percent to 23,626.73 as of 1:36 p.m. local time, with more than five stocks falling for every one that rose in the 45-member gauge. The Hang Seng China Enterprises Index of H shares of Chinese companies declined 1.1 percent to 12,948.40 today.

“Higher oil prices are creating a lot of uncertainty in the market and will continue to drag on global markets,” said Alex Au, managing director of Richland Capital Management Ltd. in Hong Kong, which oversees $300 million of assets. “At this moment, you have to price in certain risks in the market.”

Dongfeng Motor slid 3.2 percent to HK$13.74, while Guangzhou Automobile Group Co., a Chinese partner of Toyota Motor Corp. and Honda Motor Co., lost 2.9 percent to HK$9.71. Weichai Power Co., a diesel-engine maker, sank 1.9 percent to HK$50.10.

Automakers also declined after crude oil prices surged as violence in Libya escalated, raising concern demand will slow with more expensive fuel.

Aluminum Corp. of China declined 1.2 percent to HK$7.42, while Jiangxi Copper Co., China’s biggest producer of the metal slumped 3.3 percent to HK$23.55.

The Hang Seng Index rose 3.4 percent this year through yesterday as economic data and corporate earnings helped counter concern surging oil prices from the tensions in the Middle East will derail global economic growth. Shares in the gauge traded at an average 12.9 times estimated earnings yesterday, according to data compiled by Bloomberg.

Developers fell on concern China’s government will take more steps to curb property prices. China Resources slid 1.2 percent to HK$12.88, while China Overseas Land & Investment Ltd., controlled by the nation’s construction ministry, retreated 0.9 percent to HK$13.68. Guangzhou R&F Properties Co., the biggest real-estate company in the southern Chinese city, dropped 0.6 percent to HK$10.48.

China’s housing ministry is asking local governments to set price-control targets by the end of March, Minister Jiang Weixin said in Beijing. (Bloomerg)