ECON Hong Kong China Stock Index Drops on Dubai Concern

[G-Man]

Dubai’s gold traders are increasingly targeting China as global volatility hits domestic consumer demand. The ‘City of Gold’ has been quick to bolster its commercial ties with the republic given China was the world’s largest gold producer, second-largest consumer and fifth-largest holder of reserves in 2008.

Hong Kong’s Hang Seng Index dropped the most in eight months as bank shares tumbled after Dubai attempted to reschedule debt repayments.

China Banks Tumble

Goldman Sachs Group Inc. estimated Dubai World’s attempt to reschedule its debt will have “a manageable impact” on the two banks, it said in a research note today.

Industrial & Commercial Bank of China Ltd., the world’s largest bank by market value, fell 5.3 percent to HK$6.26, widening its losses in the past four days to 10 percent. Bank of China Ltd., which said this week it is studying “various options” to replenish capital, sank 5.1 percent to HK$4.13. The stock has tumbled 14 percent in the past four sessions.

China’s five biggest banks submitted plans to regulators to raise funds after unprecedented lending eroded their capital, people familiar with the matter said Nov. 24.

China Metal Recycling, the country’s largest recycler of scrap metal by sales, declined 4.9 percent to HK$8.11 after waiving a stock lockup period for investors holding 5.54 percent of the company.

At present Switzerland and Iran are Dubai’s top gold importers, but trading opportunities with China are growing due to an increasingly liberalised and competitive retail market
http://www.bloomberg.com/apps/news?p...d=aPTnULZ1oYIY

[G-Man]

DUPE!!!

[Green Co.]

Since I've already locked the other, we'll use this one.

This Dubai stuff worries me.