Hong Kong share market closed down on Friday, 17 May 2019, as risk aversion selloff triggered on tracking decline in mainland A-share market amid heightened worries over the Sino-U. S. trade dispute and its impact on the Chinese economy. At closing bell, the Hang Seng Index declined 1.16%, or 328.61 points, to 27,946.46. The Hang Seng China Enterprises Index was down 1.14%, or 122.87 points, to 10,688.75.
Market sentiment was hurt by U. S. government moves to block China's Huawei Technologies from buying vital American technology, throwing into question prospects for sales at some of the largest tech companies and drawing a sharp rebuke from Beijing. An executive order by the Trump administration, aimed at banning Huawei equipment from U.
S. networks, took effect on Thursday. The order also subjects the Chinese telecommunications giant to strict export controls. China has threatened to retaliate. It remains to be seen how the move will affect trade negotiations.
China's state planner said on Friday trade frictions with the United States has had some impact on China's economy, but it was "controllable" and countermeasures would be rolled out when needed to "keep economic operations within reasonable range". The comments came after China reported surprisingly weaker growth in retail sales and industrial output for April this week.
Shares of technology companies declined after the US president Donald Trump signed an executive order that put Huawei and some 70 affiliates on a blacklist. Sunny Optical (02382) dived 10.4% to HK$76.2. AAC Technologies (02018) dropped 3.6% to HK$43.05. BYD Electronic (00285) slumped 11.8% to HK$11.4. FIH Mobile (02038) shed 5% to HK$0.96. 5G equipment or network suppliers bore the brunt of the selling. ZTE Corporation (00763) plunged 8.1% to HK$19.66. China Tower (00788) slumped 6.4% to HK$1.88. YOFC (06869) dipped 2.6% to HK$17.02. China Communications Services (00552) slipped 3.3% to HK$5.91.
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