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Hong Kong Market falls 0.57%

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Hong Kong share market closed down on Monday, 20 May 2019, as risk aversion selloff continued on reports that further trade talks between and are now being put on hold. At closing bell, the declined 0.57%, or 158.85 points, to 27,787.61. The Enterprises Index was down 0.52%, or 55.33 points, to 10,633.42.

Market sentiment has been hurt after reports that further trade talks between and are now being put on hold. The news came after the U. S. and his administration imposed sanctions on Chinese giant telecom company U. S.-based firms are now required to have a license if they want to conduct business with the Chinese company.

An order by the Trump administration, aimed at banning equipment from U. S. networks, took effect on last Thursday. The order also subjects the Chinese to strict export controls. has threatened to retaliate.

It remains to be seen how the move will affect trade negotiations.

On Sunday, has now suspended some business with and all Huawei-made phones will immediately lose access to updates to the operating system, the world's most popular software. Newer Huawei coming out in the future will lose access to the Play Store and Gmail app, according to the report.

U. S. said in an interview aired on Sunday night that the tariffs on Chinese goods were causing companies to move production out of to and other countries in China has recently struck a sterner tone in its rhetoric, suggesting that a resumption of talks, aimed at ending the 10-month trade war between the world's two largest economies, was unlikely to happen soon.

said, in its first-quarter policy implementation report, that it would fine-tune its policy in line with changes in the economy and prices. The report seemed to send a less dovish tone for monetary policy, with the balance between growth stability and financial stability tilted a bit to the latter.

Shares of handset component plays declined after sanctions on Huawei. has restricted Huawei from using some updates to the The said it was "complying with the order and reviewing the implications". Last week, the added Huawei to a trade blacklist. (02382) sank 5% to HK$72.4. (02018) edged up 0.2% to HK$43.15 after sliding to a day low of HK$41.55. Huawei's suppliers bore the brunt of the selling. (00698). Q Technology (01478) slumped 8.3% to HK$5.73. (02038) evaporated 5.2% to HK$0.91. (00285) plunged 7.4% to HK$10.56. (06088).

Shares of public utility and yield play became target of buying. CLP (00002) jumped 2.9% to HK$89.9. It was the top blue-chip winner. (00823) soared 2.8% to HK$97.5 after hitting all-time high of HK$97.6.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 20 2019. 15:32 IST
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