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Hong Kong Market falls to 2-months low on trade-war fears

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Hong Kong share market closed down at two months low on Thursday, 09 May 2019, tracking falls in Mainland A-share market which fell to lowest level in 11 weeks todayon mounting jitters about trade-war fears after Trump claimed that 'broke the deal'. At closing bell, the fell 2.4%, or 692.13 points, to 28,311.07,its lowest close since March 8. The Enterprises Index dropped 2.27%, or 252.31 points, to 10,845.06.

Risk aversion selloff continued after the US accused of scuppering the two nations' trade talks, fanning traders' fears that his threatened tariff increases on Chinese goods will be implemented on Friday. US said on Wednesday that China "broke the deal" it had reached in trade talks with the United States, and vowed not to back down on imposing new tariffs on Chinese imports unless "stops cheating our workers."

The US Trade Representative's office announced that tariffs on $200 billion worth of Chinese goods would increase to 25% from 10% at 12:01 a.m. (0401) GMT on Friday, right in the middle of two days of meetings between Chinese and Trump's top trade officials in has announced it would retaliate if tariffs rise.

The risk appetite faded after April data from showed aggregate financing and new lending both fell short of projections, calling into question the strength of the world's second-largest economy. On the trade-dispute front, China turned more hawkish in tone, with the saying in a statement late Wednesday that necessary countermeasures will be taken against any trade tariff increases by Xi Jinping's top will be in for two days through Friday for a fresh round of trade talks.

Foreign buying of Chinese stocks has slowed significantly since March and turned negative in April and May, as investors worried that is turning more cautious about further stimulus amid signs that the economy is starting to stabilise.

Blue chips were mostly lower except (00941), which edged up 0.1% to HK$72.75. (00005) dipped 1.5% to HK$66.45. HKEX (00388) sank 5% to HK$248. (00700) declined by 2.4% to HK$375.6.

AIA (01299) shed 2.8% to HK$78.15.

Chinese lenders were lower, dragged by the slide of the A-shaer market. CCB (00939) sank 3.2% to HK$6.44. (01398) slipped 2.7% to HK$5.5. BOC (03988) fell 2.5% to HK$3.51. ABC (01288) ebbed 2% to HK$3.43. CM Bank (03968) slumped 4.7% to HK$36.2.

Automakers shares declined after CPCA said China's declined by 18% in April to 44,300 units. slumped 6 per cent to HK$13.50, its lowest close since March 4 as the worst performer on the Hang Seng gauge after announcing its auto sales decreased 19 per cent from a year earlier in April and dropped 17 per cent on month. (01958) shed 5% to HK$4.96. (02333) retreated 2.9% to HK$5.8. (02238) slipped 4.2% to HK$7.75. (01211) dipped 1.9% to HK$48.85.

Mega Expo Holdings, an event organiser, plummeted 30 per cent to HK$2.95 before trading was suspended. That followed a short-seller report accusing the company of fraud.

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

First Published: Thu, May 09 2019. 18:03 IST
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