Tuesday, June 12, 2007

Hong Kong's Hang Seng Index Slides on Rate Increase Concern; HSBC Declines

(Bloomberg) -- Hong Kong stocks fell after U.S.
bond yields rose to a five-year high, boosting concern higher
interest rates will dent demand for mortgages and property. HSBC
Holdings Plc and Hang Lung Properties Ltd. declined.

``Global central banks are tightening-biased,'' said Paul
Chan, who helps manage about $1.8 billion at Invesco Asia Ltd.
in Hong Kong. ``We're a bit cautious on rate-sensitive sectors''
such as financials and real estate investment trusts, Chan said,
adding that he prefers holding cash.


Read more at Bloomberg Stocks News

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