[R]6:00AM New York, 6:00PM Hong Kong – Stocks in China region were mixed but traded with a downward bias. Hong Kong government plan to contain real estate priced dragged stocks in the broader markets lower. Airlines gained after three leading carriers return to a quarterly profit. Angang Steel dropped 6% after it estimated as much as 50% fall in annual earnings.[/R]

Stocks in Hong Kong fell but in Shanghai rose on mixed earnings reports. Investors are increasingly cautious about the economic outlook after a sharp rise in real estate prices.

In Hong Kong trading Hang Seng Index declined 1.8% or 408.01 to 21,761.58, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, dropped 2.4% or 314.41 to 12,831.18.

In Shanghai, CSI 300 Index advanced 0.4% or 14.60 to 3,329.33.

Daily turnover on main-board declined to HK$68.97 billion from HK$73.56 billion yesterday.

Hong Kong Exports Fall 16.2% in September

Hong Kong Census and Statistics Department reported yesterday the value of total exports dropped 16.2% for the first nine months of the year to September from a year ago.

The value of re-exports fell 15.3%, while the value of domestic exports fell by 40.8%.

However, the value of imports of goods slipped 15.7%, yielding a trade deficit of HK$150.3 billion for the nine months.

For the month of September, exports plunged 8.6% to HK$226 billion after falling 13.9% the previous month.

The value of re-exports dropped 7.8% to HK$220.8 billion in the month.

According to a government spokesman, the decline in merchandise exports year-on-year slowed markedly in September on increased economic activity in Asia.

Total exports to Asia rose marginally by 0.9%.

Total exports decline in the period were led by a fall in exports to Singapore by 27.4%, United Kingdom by 22.4%, U.S. by 22.4%, Korea by 20.2%, Germany by 16.7%, Japan by 12.8% and to the mainland China by 11.8%.

China’s Value Added Industrial Output Rises in Q3

CCTV.com reported today that China Ministry of Industry and Information Technology said yesterday the value-added industrial output of enterprises above the designated size rose 8.7% year-on-year in the first nine months of the year.

MIIT spokesman Zhu Hongren said, “Production of heavy industry surged 14.8% in September from a year ago. Light industry growth has been relatively moderate, with the growth rate ranging from 6.5% to 11.8% each month.”

Zhu added the annual growth of industrial production is expected to accelerate to about 16% this quarter. Industrial performance for the whole year is likely to be better than expected.

Gainers & Losers

Hong Kong shares dropped dragged by Wynn Macau after its parent company Wynn Resorts announced a bearish outlook. The stock closed down 7%.