Hong Kong stocks fluctuated on Tuesday as companies including Brilliance China Automotive Holdings Ltd reported earnings that beat analyst estimates, while property and financial stocks declined on concern the central government may have to raise interest rates to cool asset-price inflation.

Brilliance China gained 5.3 percent after the automaker posted a full-year net income that beat average analyst estimates. China Resources Land Ltd sank 1.5 percent. Agricultural Bank of China Ltd retreated 1.9 percent. The effects of Japan's March 11 earthquake may worsen inflation in China, according to Bank of America-Merrill Lynch.

The Hang Seng Index (HSI) was little changed at 23060.36 at the close in Hong Kong. About as many stocks climbed as fell on the 45-member gauge. The Hang Seng China Enterprises Index increased 0.2 percent to 12920.44 Tuesday.

Anhui Conch Cement Co gained 4.7 percent to HK$45.60 after full-year net income by international financial reporting standards gained 76 percent to 6.16 billion yuan ($938 million), beating the average forecast of 5.44 billion yuan by 13 analysts in a Bloomberg survey.

Gome Electrical Appliances Holdings Ltd advanced 2.8 percent to HK$2.61, after saying profit rose 39 percent to 1.96 billion yuan from a year earlier.

Li & Fung Ltd advanced 1.3 percent to HK$38.05 after Barclays Capital raised its rating to "overweight" from "equal-weight".

Agricultural Bank of China retreated 1.9 percent to HK$4.13. Bank of China Ltd dropped 0.5 percent to HK$4.25.

Chongqing Rural Commercial Bank Co tumbled 13 percent to HK$5.32 after the lender forecast 2011 loan growth that trailed analysts' estimates.

A measure of financial stocks had the steepest decline among the HSI's four industry group, followed by property developers.

China Resources sank 1.5 percent to HK$13.44, while Guangzhou R&F Properties Co slid 2.3 percent to HK$11.12. China Overseas Land & Investment Ltd dropped 1.4 percent to HK$15.24.

Futures on the HSI were unchanged at 23070. The HSI Volatility Index, the benchmark gauge for Hong Kong stock options, gained 1.3 percent to 19.23.

Bloomberg

(HK Edition 03/30/2011 page3)