BOCHK raises mortgage rates

Bank of China (Hong Kong) said in an e-mailed statement on Wednesday that its prime-linked mortgage rate increased to prime rate minus 2 percent to 2.5 percent, from prime rate minus 2.7 percent.

Mortgage rates linked to Hong Kong interbank offered rate (Hibor) changed to Hibor plus 2.4 percent to 2.9 percent, from Hibor plus 2 percent to 2.5 percent, it said. The new rates take effect today.

Used-home deals at 6-yr low in Nov

Used-home transactions at 10 of Hong Kong's biggest private housing developments fell this month to the lowest since at least January 2006, according to Centaline Property Agency Ltd. The number of deals fell 30 percent in November from the previous month, the company said in an e-mailed statement.

Yuan deposits fall 0.6% in Oct

Yuan deposits in Hong Kong decreased slightly to 618.5 billion yuan ($96.98 billion) in October, down 0.6 percent from a month earlier, the Hong Kong Monetary Authority said on Wednesday.

Cross-border trade settled in yuan dropped 15.3 percent in October on a month-on-month basis to 161.5 billion yuan.

Melco Crown to start trading

Casino gaming operator Melco Crown Entertainment Ltd said on Wednesday it would list in Hong Kong by way of introduction without issuing new shares, with trading to begin on Dec 7 under the listing symbol 6883.

Credit Suisse Securities (Hong Kong) Ltd and Deutsche Securities Asia Ltd have been appointed as designated dealers, the company said.

Earlier in November, Melco Crown said it had applied to dual list its shares in Hong Kong by way of introduction and was aiming to complete the listing by year-end.

Stocks snap gains as bank ratings cut

Hong Kong stocks fell Wednesday, with the benchmark index set to snap a two-day rally, after Standard & Poor's downgraded credit ratings for lenders.

The Hang Seng Index (HSI) fell 1.46 percent to 17989.35 at the close, extending this month's decline to 9.4 percent. The Hang Seng China Enterprises Index slipped 2.11 percent to 9508.94. The gauge has lost 9.6 percent this month.

Financial firms were the biggest drag on the HSI. HSBC dropped 1.5 percent to HK$57.45. Standard Chartered Plc slid 1.6 percent to HK$159.40.

Mainland banks fell even after Bank of China and China Construction Bank were raised to A from A- and S&P maintained its A rating on Industrial and Commercial Bank of China Ltd, giving all three lenders higher grades than most big US banks.

Bank of China lost 1.6 percent to HK$2.41, and China Construction Bank slid 0.8 percent to HK$5.26. Industrial and Commercial Bank dropped 2.3 percent to HK$4.31.

Ping An sank 5.3 percent to HK$51.15. The China Securities Regulatory Commission issued a warning letter to Ping An Securities Co in regard to the initial public offering of Hunan Shengjingshanhe Bio Technology Co, the Shanghai Securities Journal reported on Wednesday. Sheng Ruisheng, a Ping An spokesman, confirmed the letter had been issued, without giving details of its contents.

Europe's effort to expand its bailout fund is falling short, forcing euro-area finance ministers to consider greater roles for the International Monetary Fund and the European Central Bank to insulate Spain and Italy from the debt crisis.

Futures on the HSI slid 0.1 percent to 18082. The HSI Volatility Index added 0.8 percent to 30.88.

Bloomberg - Reuters

(HK Edition 12/01/2011 page2)