Hong Kong: Stocks down, Guotai Junan shares slump on missing CEO

[HONG KONG] Hong Kong shares fell on Monday, taking cues from weak mainland markets and as investors braced for a likely rise in US interest rates next month.

The Hang Seng index fell 0.4 per cent, to 22,665.90, while the China Enterprises Index lost 0.7 per cent, to 10,229.43 points.

Investors appear increasingly relaxed about the prospect of higher US interest rates, but they are looking for fresh cues on direction amid uncertainty about the Chinese economy.

Performance was mixed among main sectors, with IT and industrial stocks rising, but energy and property shares falling.

The financial sector was pulled down by Chinese brokerage Guotai Junan International Holdings Ltd.

Shares of Guotai Junan dived 12.3 per cent, after it said it was unable to reach its chief executive Yim Fung since Nov 18.

In contrast, shares of Chinese property developer Evergrande Real Estate jumped more than 5 per cent to a 5-month trading high, after the company said it would pay US$617 million for a 50 per cent stake in a joint-venture life insurer.

REUTERS