Hong Kong Market falls on trade worries

Hong Kong share market closed higher on Tuesday, 04 September 2018, as investors chased for beaten down stocks on tracking gains in Mainland A-share market today. However, market gains were limited on caution of intensifying U.S.-led trade war after U.S. President Donald Trump has said he is ready to implement new tariffs on Chinese imports as soon as a public comment period on the plan ends on Thursday. At closing bell, the Hang Seng Index inclined 260.80 points or 0.94% to 27,973.34. The Hang Seng China Enterprises Index added 77.06 points or 0.71% to 10,890.63. The sub-index of the Hang Seng tracking the Commerce & Industry sector added 1.54%, the financial sector was 0.6% up, properties sector rose 1%, and Utilities sector rose 0.02%. Turnover decreased to HK$72.1 billion from HK$78.9 billion on Monday.

U.S. President Donald Trump has said he is ready to implement new tariffs on Chinese imports as soon as a public comment period on the plan ends on Thursday, which would be a major escalation after Washington already applied tariffs on $50 billion of exports from China.

Data showed manufacturing activity in China grew at the slowest pace in more than a year in August, compounding fears that the intensifying U.S.-led trade war could derail growth, not just in China, but globally.

Tencent (00700) added 1.7% to HK$338.6 as People's Daily today says that "It's not rational to demonise online games. The key issue should be avoiding addiction."

CK Asset (01113) jumped 4.8% to HK$58.25 after the company bought back 1.8 million shares yesterday.

Chinese financials rebounded in tandem with A-share markets. CCB (00939) edged up 0.6% to HK$6.97. ICBC (01398) nudged up 0.3% to HK$5.79. Ping An (02318) added 1.3% to HK$76.8.

Telecom stocks gained after Nomura forecast the total investment for 5G amounts to RMB1.4 trillion. China Unicom (00762) soared 5.9% to HK$9.58. China Telecom (00728) shot up 4% to HK$3.89. China Mobile (00941) rose 1.2% to HK$75.55. ZTE (00763) also advanced 1.7% to HK414.72.

Shares of Macau gaming names rose across the board as Nomura estimated Macau gaming industry's gross gaming revenue growth of 15% in September. Galaxy Entertainment (00027) gained 2.6% to HK$58.7. Sands China (01928) put on 1.2% to HK$37.8. Wynn Macau (01128) bounced 2.1% to HK$21.55.

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