HK market's fall is a correction overwhelming growth 9 JULY 2014

China's consumer price inflation declined unexpectedly in June, indicating weakness in the economy, which could prompt Beijing to further stimulate actions to shore up growth.

Hang Seng Index reported loss of 1.2 percent to 23,248.43 at mid-day, after closing at 0.1 percent low movements in the last four sessions.

The China Enterprises Index representing top Chinese listings in Hong Kong slipped 1.1 percent.

The CSI300 of the leading Shanghai and Shenzhen A-share listings fell 0.5 percent. Shanghai Composite Index followed the downgrading trend declining 0.4 percent at 2,056.89. Both closed at their highest since mid-June on Tuesday.

HK market analyst said, "Reporting spread out some strong sentiments in the markets. A lot of selling recorded in the market till now."

Wednesday's fall out is, "just a correction to an overstretched rally," an economist quoted. Shares in HK markets surged to seven month's high following the impulsive sentiments of the market.

Tencent reported its worst daily drop since May 29 at 2.9 percent. Major influencing factor for it's dragging is weak US economy last night. Nasdaq's over night falling pulled down most HK stocks. HSBC Holdings PLC, the second-biggest slidder on the index after Tencent, dropped 1.1 percent.

Chinese banks made the top under-performers list. Bank of China slugged 2.0 percent in Hong Kong and 0.8 percent in Shanghai. Smaller lender China Minsheng Bank slumped 1.0 percent in Hong Kong and 0.8 percent in Shanghai.

On Tuesday, Singapore sovereign investor Temasek Holdings Pvt Ltd holds 6 percent stake in China Construction Bank (CCB) and a 2 percent stake in Industrial and Commercial Bank of China. The company said, "we would keep investing in Chinese banks unconcerned about the temporary slowdown in portfolio growth due to a drop in the value of some of its bank holdings."

CCB's H-shares drowned 0.9 percent to a 1-1/2-month low. Daiwa Capital Markets dropped the rating of CCB by two notches from "buy" to "hold" on Monday, looking at the property market's steep falls.

Luye Pharma Group broke records as it stood alone gaining the slumping markets. Shares of recently listed Luye climbed 11.3 percent on its Hong Kong debut.

The growth is encouraging prospects for other so-called "China orphan" firms. China orphan is the term referred to companies which were delisted by private equity firms from overseas bourses to relist closer to home, where demand for Chinese firms is seen as more vibrant. In Luye's case, the move from Singapore Stock Exchange to HK.

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