Hong Kong Hang Seng falls 0.75%

The Hong Kong stock market closed down on Wednesday, 20 November 2019, amid uncertainty over the outlook for key trade talks between two major economies and renewed tension between the US and China over legislation supporting Hong Kong protesters. At closing bell, the benchmark Hang Seng Index declined 0.75%, or 204.19 points, to 27,093.80. The Hang Seng China Enterprises Index grew 1.33%, or 140 points, to 10,696.56.

Investors concerns that trade talks between the world's two biggest economies could hit a snag, after Beijing condemned a US Senate measure backing anti-government protesters in the Asian financial hub. In a statement, China's foreign ministry said the United States should stop interfering in Hong Kong and Chinese affairs and move to stop the latest bills on Hong Kong from becoming law. China condemned the passage of a bill by the US Senate aimed at protecting human rights in Hong Kong, amid clashes between pro-democracy protesters and police.

Conflicting signals from Washington and Beijing in the past few days deflated market hopes of a truce soon to end their damaging tariff war. President Donald Trump said the United States would raise tariffs on Chinese imports if no deal is reached with Beijing.

Blue chips were lower. HSBC (00005) dipped 0.6% to HK$58.5. HKEX (00388) slipped 1% to HK$249.2 on reports that it may want to acquire the Spanish stock exchange. Tencent (00700) inched down 0.3% to HK$335.6. China Mobile (00941) shed 0.2% to HK$62.1. AIA (01299) dropped 2.1% to HK$77.8.

Smartphone component suppliers were mixed after Qualcomm said 450 million 5G phones will ship in 2021. AAC Technologies (02018) shot up 1.2% to HK$57.2. It was the top blue-chip winner. Sunny Optical (02382) dipped 2.4% to HK$126.7. BYD Electronic (00285) slid 2.5% to HK$14.98. Q Technology (01478) put on 1.3% to HK$12.06. FIH Mobile (02038) soared 6.1% to HK$1.22.

Shares of insurers declined, with AIA (1299 HK), down 2.1% to HK$77.8, while Ping An Insurance (2318 HK) slid 0.5% to HK$91.85, and China Construction Bank (939 HK) slipped 0.3% to HK$6.4.

Properties stocks inclined, benefited from the 5-year loan prime rate, which is the loan benchmark rate often used for pricing mortgage loan, and was cut for the first time this year, to 4.8% from 4.85%.

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