Hong Kong Market ups 0.42%

Headline indices of the Hong Kong financial market closed higher on Thursday, 24 January 2019, as solid profit growth at China Merchants Bank, but continued uncertainties surrounding the global economic outlook as well as the ongoing U.S.-China trade fight capped gains. At closing bell, the Hang Seng Index added 112.78 points or 0.42% to 27,0120.98. The Hang Seng China Enterprises Index rose 59.97 points or 0.56% to 10,691.

Mixed trade war news overnight had little impact on the market. U.S. President Donald Trump said on Wednesday that China "very much wants to make a deal" and the U.S. "is doing very well" in the talks. Also on Wednesday, a top Chinese regulator said market pressure could force the U.S. into a deal because Trump measures his success "by the rise and fall of the Dow Jones average". But White House advisers stressed that Washington will not budge on the key question of intellectual property rights. Chinese Vice Premier Liu He is set to visit Washington at the end of January for fresh talks.

China's economy can maintain sustainable rates of growth despite global uncertainties, Vice President Wang Qishan said on Wednesday, days after the world's second-largest economy posted its weakest

Sentiment during Asian trading hours appeared subdued as concerns remained over the state of U.S.-China trade negotiations following reports on Tuesday that the U.S. had canceled a trade meeting with Chinese officials. White House economic advisor Larry Kudlow denied that an official meeting had been canceled, telling CNBC that no immediate meetings had been scheduled other than the visit by Chinese Vice Premier Liu He next week.

Blue chips were mostly firmer. HSBC (00005) edged up 0.5% to HK$65.3. HKEX (00388) was unchanged at HK$240.2. AIA (01299) nudged down 0.2% to HK$68.3. China Mobile (00941) gained 1.3% to HK$82.35. Tencent (00700) dipped 0.9% to HK$330.2, hurt by the absence of its game approval by the authorities.

Sands China (01928) fell 0.3% to HK$35.55 after the casino operator reported 4Q net profit decline of 11% to US$465 million. Fok Foundation and four parties controlled by Pansy Ho, the daughter of Stanley Ho's second wife, and her siblings, formed a group with a total share stake of 53% in STDM, which owns 54% of SJM Holdings (00880). Investors view the move as a confidence vote for the renewal of casino concession. The stock soared 8.2% to HK$7.79. Melco International Development (00200) advanced 0.9% to HK$17.54. Wynn Macau (01128) dipped 0.6% to HK$17.6. MGM China (02282) fell 0.9% to HK$13.5. Galaxy Entertainment (00027) dipped 0.4% to HK$49.

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