Hong Kong Market ends tad higher

The Hong Kong stock market closed marginally higher in quiet and narrow trade on Monday, 21 October 2019, as risk sentiments bolstered by reports that the U.S. and China made 'substantial progresses at trade talks and hopes that Beijing would continue its policy support for the economy. However, market gains capped as worries about European political instability after UK Prime Minister Boris Johnson failed to secure the votes needed to pass the Brexit deal he struck with the EU. At closing bell, the benchmark Hang Seng Index rose 0.02%, or 6.10 points, to 26,25.68. The Hang Seng China Enterprises Index added 0.03%, or 3.37 points, to 10,543.41.

Brexit developments over the weekend created further uncertainty over the United Kingdom's impending departure from the European Union. U.K. Prime Minister Boris Johnson was thwarted by a cross-party group of politicians in Parliament who voted to postpone the meaningful vote on his new Brexit deal. That forced Johnson to ask Brussels for an extension to the current October 31 departure deadline, but EU leaders don't necessarily have to accept it. This week, the British government will present the full Withdrawal Agreement Bill to try and pass it through both the upper and lower houses of Parliament. A decisive vote by lawmakers would likely come later in the week.

On the U.S. and China trade development, the U.S. and China made 'substantial progress' at trade talks, according to Chinese Vice Premier Liu He. Chinese Vice Premier Liu He said on Saturday that China would work with the United States to address each other's core concerns on the basis of equality and mutual respect, and that stopping the trade war would be good for both sides and the world. After reaching a partial trade deal earlier this month, Beijing and Washington are working to pen a written agreement. Both sides have applied tariffs on billions of dollars worth of each other's products, which have roiled global markets, created business uncertainty and dented economic outlooks around the world. China said last week its economy grew by 6% on-year in the third quarter, which is believed to be the slowest GDP gain for the country in at least 27.5 years.

China's state planner in September more than doubled its approval for fixed-asset investment projects, as Beijing looks to step up support for the economy expanding at the slowest pace in nearly three decades. The National Development and Reform Commission approved 177.8 billion yuan ($25.15 billion) of investment in 14 fixed-asset projects in September. That compared with its August approval for 68.9 billion yuan worth of projects. In the third quarter, the NDRC approved 35 projects totaling 317.2 billion yuan.

Blue chips were mixed. HSBC (00005) nudged up 0.4% to HK$61.15 even though JP Morgan disposed of 410 million shares. HKEX (00388) jumped 1.9% to HK$242.6. Tencent (00700) fell 1.9% to HK$324.8. China Mobile (00941) rose 0.3% to HK$66.35. AIA (01299) softened 0.2% to HK$75.2.

China Life (02628) soared 5% to HK$19.7 after it issued a positive profit alert. Other insurers were mostly higher. CPIC (02601) rose 1.2% to HK$29.8. ZA Online (06060) surged 8.4% to HK$25.75. NCI (01336) shot up 1.9% to HK$32.15. China Taiping (00966) added 1.2% to HK$18.04. PICC & P&C (02328) gained 1.6% to HK$9.7. But Ping An (02318) edged down 0.4% to HK$94.2.

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