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17.01.201405:51:01UTC+00Hong Kong stocks retreat on shadow banking worries

Hong Kong stocks sagged down at the beginning of trading on Friday, as mainland banks were under pressure on shadow banking worries. The Hang Seng Index edged lower 0.3% at 22,906.35. Mainland banks pulled back after Industrial and Commercial Bank of China, the world's biggest bank by assets, reportedly refused to "assume main responsibility" to bail out investors in a 3 billion yuan ($500 million) investment product that it helped distribute. Industrial and Commercial Bank of China shares missed 1%, Bank of China gave up 0.6%, and Agricultural Bank of China Ltd. surrendered 1.2%. Meanwhile, China Cosco Holdings, the country's largest bulk shipping company, rose 5% after it expected to return to profit in 2013 and possibly avoid a delisting in Shanghai after two years of substantial losses. On the mainland, the Shanghai Composite Index relinquished 0.8%.

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