Hang Seng Index drops for the 2nd consecutive day

Stocks on the Hong Kong Stock Exchange maintained the downward trend for the second straight day, after failing to sustain the recovery in the morning session led by the banking sector.

The benchmark Hang Seng Index jumped to the intraday high of 27,637 points in the early session and closed lower at 27,112 points, down 0.25% or 66 points. The trading turnover was HK$114.9 billion.

The China Enterprise Index on the Hong Kong-listed mainland companies gained 68.97 points, or 0.44%, to end at 15,659.71 points on Tuesday, after the news that China Merchants Bank<600036><3968>, the country's sixth largest lender, announced its profit more than doubled after preliminary accounting.

The strong performance of China Merchants Bank added investors' confidence in the banking stocks. China Merchants Bank rose 2.99%. Industrial and Commercial Bank of China (ICBC)<601398> <1398>, the country's largest lender, China Construction Bank(CCB)<601939><939> and Bank of China<601988><3988> increased by 0.27% to 3.5%.

The property stocks fell into a narrow range after tapping the record highs in the early session. Sino Land<83> climbed 1.7% to HK$28.5 after soaring 3.3% in the morning, while Sun Hung Kai Properties<16> erased the gains of 1.2% in the early session and closed slightly down.