HK, China hit 3-wk low on banks, estate

Shares in Hong Kong and China fell to three-week low, led by banks and properties, after tough new proposals by banking regulators and Beijing's tighter curbs on buying government land reignited fears about the sectors' outlooks.

Hong Kong's benchmark Hang Seng Index ended down 0.8 per cent or 171.75 points at 21,175.88, retreating for a fourth straight session. For the week, the index has fallen 3.3 per cent on fears of more fund outflows as the US dollar strengthens. Brokers said the market was likely to extend its sell-off.

Turnover rose to HK$69.75 billion ($8.99 billion), from Thursday's HK$66.60 billion.
The China Enterprises Index of top locally listed mainland Chinese stocks closed down 1.33 per cent at 12,334.82.

The Shanghai Composite Index fell 2.05 per cent or 65.192 points to finish at 3,113.886, slipping for a fourth day in a row. The index posted a 4.1 per cent loss this week.

Losing Shanghai A shares far outnumbered gainers by 836 to 55, while turnover slipped to a one-week low of 116 billion yuan from Thursday's 123 billion yuan.
The property sub-index dropped 5.42 per cent. Property issues were hard hit with industry heavyweight China Vanke losing 6.03 per cent, while China Merchants Property sank 8.97 per cent.

The index has been pressured over the past week by concerns about rising share supplies. The index once dropped below its 60-day moving average, now at 3,112 points, for the first time in seven weeks, although it drew some support Friday.