Hong Kong stocks fall on reports Soros making bearish bets again

HONG KONG, June 10 —  Hong Kong stocks fell today as traders took profits on recent gains after reports that billionaire investor George Soros, a noted pessimist on China, was making big, bearish bets again.

Caution ahead of more Chinese economic data on Monday also prompted investors to square positions, while mainland China markets were closed for a long holiday.

The Wall Street Journal reported yesterday that Soros Fund Management has expressed concern about global economic outlook, China capital flight, reserve depletion, and internal politics.

The Hang Seng index dropped 0.7 per cent to 21,152.99 points by the lunchbreak. The Hong Kong China Enterprises Index lost 1.5 per cent to 8,890.12.

"Traders squared their position in a lacklustre market and after Soros' view on the market," said Steven Leung, a sales director at UOB Kay Hian. "Participants also took to the sideline ahead of the outcome of the MSCI's decision on whether to include Chinese stocks."

Stocks in China and Hong Kong have been supported in recent weeks by growing expectations that US market index provider MSCI could add mainland stocks to its emerging market benchmark for the first time.

It is due to announce its decision on Tuesday.

China Resources Power led the slide in the main index, losing 4.2 per cent. Chinese financial stock adds pressure with Bank of Communications falling fell 2 per cent, China Construction Bank sliding 1.7 per cent, and CITIC Ltd was down 1.9 per cent. — Reuters

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