Hong Kong Stocks Decline After China Manufacturing Data

Hong Kong stocks dropped, with the benchmark index headed for its biggest drop in two weeks, after a Chinese manufacturing gauge slumped. China Petroleum & Chemical Corp. jumped on a plan to seek private investors.

Industrial & Commercial Bank of China Ltd., the nation’s largest lender, slid 2.5 percent as financial companies led losses. Tencent Holdings Ltd. (700), Asia’s largest Internet company by market value, slid 2.7 percent after Facebook Inc. agreed to buy mobile-messaging startup WhatsApp Inc. China Petroleum, also known as Sinopec, soared 7.1 percent after saying it’s seeking investors for as much as 30 percent of its oil retail unit.

The Hang Seng Index lost 1.4 percent to 22,358.80 as of 10:23 a.m. in Hong Kong, after rising as much as 0.4 percent. About five stocks declined for each that rose on the 50-member gauge, with trading volume more than double the 30-day average. The Hang Seng China Enterprises Index (HSCEI), also known as the H-share index, retreated 1.4 percent to 9,918.90.

The preliminary February reading of 48.3 for a Purchasing Managers’ Index released today by HSBC Holdings Plc and Markit Economics compares with January’s final figure of 49.5 and the 49.5 median estimate in a Bloomberg News survey of 17 economists. A number below 50 indicates contraction.

(Source: Bloomberg)