Hong Kong, China shares continues to fall

Hong Kong, China shares continues to fallThe stock markets in Hong Kong and China continues to fall for the third day pulled down by the country's banking and property sector after report in state-controlled media indicated that the that bad loan ratios of China's leading banks might rise three times this year.

The share trading in Shanghai was close to its lowest level in 2012 just before the upcoming political transition in China that formally starts with the 18th Communist Party Congress on Thursday. In hong Kong, the Hang Seng Index fell 0.4 percent, while the China Enterprises Index of the top Chinese listings in Hong Kong by 0.6 per cent.

In China, the Shanghai Composite Index and the CSI300 Index of the top Shanghai and Shenzhen listings recorded a fall of 0.3 per cent. Analysts say that the investors will only considering reentering the Hong Kong markets after the leadership transition in the Communist Party of China has taken place.

The Industrial and Commercial Bank of China fell 0.4 percent in Hong Kong and 0.5 percent in Shanghai while the Agricultural Bank of China fell 1.2 percent in Hong Kong and 0.8 percent in Shanghai. Reports suggested that bad debts could soar in the steel, ship building and solar sectors as well as among exporters, local governments and property developers.