Hong Kong Stocks Fall From Record High

Hong Kong Stocks Fall From Record High; China Mobile Declines 2007-10-03 03:39 (New York) By Chua Kong Ho and Darren Boey Oct. 3

(Bloomberg) -- Hong Kong stocks fell on concern a surge to a record had overvalued company earnings prospects. China Mobile Ltd. and Hong Kong Exchanges & Clearing Ltd., the Hang Seng Index's best performers in the past month, slid. Sun Hung Kai Properties Ltd., Hong Kong's biggest developer by market value, slumped the most in six years on speculation the company will sell shares in itself. HSBC Holdings Plc climbed on speculation the financial industry may be recovering from losses linked to U.S. subprime mortgage loans. The Hang Seng Index slid 510.31, or 1.8 percent, to 27,689.44 at 3:32 p.m. in Hong Kong, from its record close of 27,826.82 yesterday. The 14-day relative strength index on the Hang Seng, which earlier climbed 2.4 percent, was at 77, seven points above the level some investors use as a signal to sell. ``It looks to be a bubble to us,'' said William Barbour, who helps oversee $32 billion at Deutsche Asset Management. ``There are other markets that present far better value.'' The Hang Seng China Enterprises Index, which measures 43 so- called H shares of Chinese companies, slumped 3.2 percent to 17,393.25. October futures on the main Hang Seng benchmark lost 1.9 percent to 27,684.