Hong Kong Market falls on trade worries

Hong Kong share market closed lower on Monday, 3 September 2018, as investors grew concerned about the outcome of the free trade talk between the United States and Canada. Investor sentiment was also hit by a private survey data showing manufacturing growth slowed to a 14-month low in August and speculation that President Donald Trump's administration will impose tariffs on a further US$200 billion of Chinese imports as soon as this week. At closing bell, the Hang Seng Index declined 176.01 points or 0.63% to 27,712.54. The Hang Seng China Enterprises Index dropped 62.01 points or 0.57% to 10,813.57. The sub-index of the Hang Seng tracking the Commerce & Industry sector declined 1.1%, the financial sector was 0.3% down, and properties sector fell 0.9%, while Utilities sector rose 0.1%. Turnover decreased to HK$78.9 billion from HK$108 billion on Friday.

Shares of automakers declined after China Automobile Dealers Association (CADA) said inventories level of auto dealers in August hit 52.2%, higher than the alarming level for eight months in a row. Geely Automobile (00175) dipped 4.4% to HK$15.94. Great Wall Motor (02333) plunged 6.6% to HK$4.51. Dongfeng Motor (00489) slid 4.6% to HK$8.37. Brilliance China Automotive (01114) plunged 7.1% to HK$11.56. BAIC Motor (01958) declined 5.5% to hK$6.24. GAC Group (02238) dived 6.1% to HK$8.

Shares of casino operators were softer. MGM China (02282) dipped 1.6% to HK$14.56. Galaxy Entertainment (00027) and Melco International Development (00200) slid 1.6% and 1.7% to HK$57.2 and HK$20.55. SJM Holdings (00880) fell 3.7% to HK$8.55. Wynn Macau (01128) slipped 3.4% to HK$21.1. Sands China (01928) declined 2.5% to HK$37.35.

Among individual stocks, Tencent ended down 2% to HK$332.8 after China government has announced measures to limit the number of new online games in order to reduce the online gaming time of young adults.

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