5:15 PM Hong Kong – Stocks in Hong Kong and Shanghai rested ahead of inflation data tomorrow. A surge in inflation in March is expected to surpass 5% increase, ahead of government target. Hong Kong residential prices cross the previous peak in 1997 on low interest rates.

Stocks in Shanghai and in Hong Kong edged lower ahead of March inflation data on the mainland. The inflation is estimated to have accelerated as much as more than 5% as prices of commodities and food have surged.

The Shanghai Composite Index fell 0.25% to 3,042.64 and the CSI 300 Index dropped 0.6% to 3,353.56.

The Hang Seng index declined 0.5% to 24,014 and the China Enterprises Index fell 0.6% to 13,481.73.

Trading volume in Hong Kong fell below its 30-day average after the volume fell for the fourth session in a row.

Hong Kong considers more property price curbs after prices cross the peak of 1997. Finance Secretary John Tsang said on Wednesday that the island government may introduce more measures to curb speculation.

The government plans to sell nine residential sites through auctions between April and June that will provide 2,650 of total residential units.

Average residential price increased 24% in 2010 after jumping 30% in 2009 in Hong Kong.

Stock Movers

Agriculture Bank of China Ltd increased 2.2% to on a sharply higher volume on no news. In Shanghai, China Minsheng Banking Corp added 2.2% and Shanghai Lujianzui Finance added 2.7%.

Shun Tak Holdings Ltd increased 6.9% as investors bid up Macau linked stocks.

Real estate developers were lower in Shanghai trading on the worries that new property lending curbs may be enforced by region governments.

China Vanke Co. declined 1.5% to 8.80 yuan and Poly Real Estate Group Co. dropped 2.3% to 13.83 yuan.

Electric utilities declined after the National Energy Administration said power demand increased 13% in March to 388.8 billion kilowatt-hours. The demand increased at a faster pace of 16% in February.

Citic Securities added 0.55% to 14.61 yuan after shareholders approved the company’s plan for a Hong Kong offering.

Other brokerage firms also closed higher in Shanghai. Guoyuan Securities soared 4.2% and Hong Yuan Securities added 3.5%. GF Securities increased 3.45%.

Shenzhen Development Bank Co. increased 0.8% to 18.17 yuan after the bank estimated in a filing with the exchange that the first quarter net income may increase as much as 60% to 2.52 billion yuan.