Sun Hung Kai Financial 'fat finger'

Sun Hung Kai Financial was behind an erroneous buy order for shares of China Life Insurance Co, which was identified and rectified, it said in an e-mailed statement.

An isolated system glitch occured at approximately 3:25 pm Hong Kong time on Thursday and caused the error, according to the statement. All trades for the day have been honored and no clients were affected, the company said in the statement.

HSBC Middle East to cut jobs

HSBC Holdings Plc, Europe's biggest bank, plans to cut about 200 jobs in six countries in the Middle East, some 2.3 percent of its regional workforce, to lower costs and boost profitability, according to a memo sent to employees on Thursday.

The reductions will take place in HSBC's consumer banking businesses in the United Arab Emirates, Qatar, Bahrain, Jordan, Lebanon and Oman over the next few weeks, according to a letter sent on Thursday from the bank's office in Dubai and obtained by Bloomberg News. HSBC plans to move to a hub-and-spoke model, with the regional hub in Dubai being strengthened, it said. A spokesman for HSBC declined to comment.

Evergrande: 30% off to employees

Evergrande Real Estate Group Ltd is offering a 30 percent discount on homes to its employees, said Chen Fen, the company's investment relations officer.

The developer started offering the discount since July and it's not offering the incentive because of cash flow problems, Chen said, denying a report in the 21st Century Business Herald on Thursday. "This is a welfare program we offered to our employees," Chen said.

"Many other developers do so as well. This has absolutely nothing to do with our cash flow. We have no problem on that."

Stocks fall on rate-hike concern

The Hang Seng Index (HSI) fell for the first time in three days on Thursday ahead of the release of mainland economic data and on concern the nation's central bank will raise interest rates to curb inflation.

The HSI fell 0.67 percent to 19912.82. The index advanced 1.7 percent on Wednesday. The Hang Seng China Enterprises Index slid 0.43 percent to 10499.89.

China's August consumer price index, scheduled to be released today, may increase 6.2 percent from a year earlier, according to the median estimate of economists surveyed by Bloomberg. Producer prices and retail sales reports will also be announced today.

Belle International tumbled 8.5 percent to HK$14.88, the biggest drop in the HSI, after the company said managers including Chief Executive Officer Sheng Baijiao plan to sell shares.

ICBC fell 1 percent to HK$4.99. Agricultural Bank of China Ltd slid 0.6 percent to HK$3.54.

The People's Bank of China may raise interest rates this month or next, triggered by continuing high inflation, the Shenzhen-based Securities Times reported on Thursday, citing an unidentified economist at China International Capital Corp.

China Yurun Food tumbled 16 percent to HK$13.94 after Shanghai-based National Business Daily reported additives to stimulate growth of lean meat were used in some of its products. Separately, three executive directors including the chief executive officer exercised stock options and sold the shares, according to disclosure statements to the Hong Kong Stock Exchange.

Futures on the HSI fell 0.6 percent to 19856. The HSI Volatility Index sank 1.4 percent to 31.85.

Brightoil Petroleum Holdings Ltd surged 13 percent to HK$2.11 after saying it expects an increase in full-year profit.

Bloomberg - Reuters

(HK Edition 09/09/2011 page2)