Roundup: Hong Kong shares end 2.44 pct lower on 2nd trading session of 2008

Hong Kong's benchmark Hang Seng Index ended lower Thursday, with Chinese banks leading the decline on concerns China may tighten credit further to cool its booming economy.

The blue-chip Hang Seng Index fell 673.24 points, or 2.44 percent, to close at 26,887.28 after trading between 26,864.13 and 27,223.71 during the session. Turnover totaled 90.14 billion HK dollars (11.56 billion U.S. dollars), up from 75.87 billion HK dollars (97.20 billion U.S. dollars) Wednesday.

Analysts said Friday's U.S. non-farm payrolls report will provide a crucial reading on the chances of the U.S. economy sliding into recession after data disclosed Thursday showed the U.S. Institute of Supply Management's December manufacturing index fell to 47.7 from 50.8 in November, the weakest reading in nearly five years.

All the four major categories lost ground. The Finance lost most at 2.75 percent, followed by the Commerce and Industry at 2.36 percent, the Properties at 2.04 percent, and the Utilities at 1.31 percent.

Chinese banks led Thursday's declines. Industrial and Commercial Bank of China fell 6.3 percent to 5.22 HK dollars, China Construction Bank dropped 5.5 percent to 6.15 HK dollars and Bank of Communications fell 4.8 percent to 10.22 HK dollars.

Oil companies fell on rising oil prices. PetroChina, the world's largest company by market capitalization, dropped 2.9 percent to13.20 HK dollars and Sinopec fell 4.5 percent to 11.10 HK dollars.

Bucking the trend, developer MTR Corp. rose 3.3 percent to 31.80 HK dollars.

Chinese telecom stock China Mobile was down 2.57 percent, China Unicom down 4.85 percent, Netcom down 2.13 percent, and China Telecom down 1.61 percent.

The three insurers China Life, Ping An and PICC P&C trimmed 2.97 percent to 4.71 percent.