SHANGHAI, March 27 Hong Kong stocks fell on
Monday as fresh measures to curb China's heated property market
weighed on shares of developers, offsetting data showing strong
profit growth for industrial companies early in the year.
The Hang Seng index fell 0.7 percent to 24,193.70
points, while the China Enterprises Index lost 1.1
percent to 10,362.02.
An index tracking mainland developers tumbled over 4
percent, led by industry heavyweight Vanke, after
China restricted individual purchases of commercial properties
in Beijing in the latest effort to curb real estate
Vanke fell nearly 5 percent. Though it reported on Sunday
that its 2016 core profit rose 19 percent, thanks to record
sales, the number fell short of market expectations.
Over a dozen cities in China have tightened controls on
property purchases so far this month amid signs that home prices
are picking up again in spite of a slew of earlier cooling
Investors shrugged off fresh signs of China's economic
Profits of Chinese industrial firms surged 31.5 percent in
the first two months of 2017 from a year earlier, data showed on
A healthy pick-up in earnings had already been expected
following sharp rises in producer prices in recent months, and
compared with a weak performance in early 2016.
Moreover, many analysts fear the recovery, which is being
mainly driven by the property sector and government
infrastructure spending, is unsustainable.
Prices of materials shares also fell sharply.
Chinese steel and iron ore futures sank to their lowest in
more than six weeks on Monday, extending a five-day losing
streak as speculative investors continued their exodus amid
mounting concerns about demand and growing
(Reporting by Samuel Shen and John Ruwitch; Editing by Kim