China, Hong Kong stocks lower on weaker yuan, Fosun uncertainty

viernes 11 de diciembre de 2015 00:49 GYT
 

* CSI300 -0.7 pct; SSEC -0.9 pct; HSI -0.7 pct

* Yuan hit 4 1/2 year-low against the dollar

* Fosun-related stocks halt trading after boss reportedly missing

SHANGHAI, Dec 11 (Reuters) - China and Hong Kong stocks declined on Friday, with investor sentiment hurt by further weakening in the yuan and news that the billionaire founder of Fosun Group could not be contacted, potentially affecting a large number of the group's listed entities.

China's CSI300 index fell 0.7 percent to 3597.52 points by lunch break, while the Shanghai Composite Index lost 0.9 percent to 3426.23 points.

In Hong Kong, the Hang Seng index was down 0.7 percent at 21,555.9 points, while the Hong Kong China Enterprises Index sagged 1.3 percent to 9324.66.

Investors, already cautious ahead of a possible U.S. rate hike next week, fret at a further weakening in the Chinese currency, which hit its lowest level against the dollar in nearly four and a half years.

"A U.S. rate hike would have a major impact on money flows out of emerging markets including Hong Kong and China," said Linus Yip, chief strategist at First Shanghai Securities.

"Also, if the yuan continues to depreciate, that's negative to stocks as well, because it means investors are not confident about China's economic restructuring."   Continuación...