Sentiment quickly turned sour as Trump said over the week that the US would increase tariffs on US$200 billion of Chinese goods to 25 per cent from 10 per cent starting Friday, complaining the trade negotiation between Washington and Beijing was progressing too slowly. He also threatened to impose a new 25 per cent duty on the remaining US$325 billion of imports from the Asian nation. The two sides earlier agreed to a truce in December following a meeting between Trump and his Chinese counterpart Xi Jinping in Argentina.
Trump's latest threat to raise tariffs on Chinese exports to pressure Beijing to make more concessions appears to reflect that his administration is seeking a harder line in response to domestic political pressures.
Blue chips fell across the board. HSBC (00005) sank 2.6% to HK$67.9. HKEX (00388) slipped 4.4% to HK$266 ahead of its earnings report on 8 May. Tencent (00700) fell 3.2% to HK$375.6. China Mobile (00941) softened 0.5% to HK$73.9. AIA (01299) shed 3.6% to HK$80.45.
Packaged meats producer WH Group (00288) plunged 6.8% to HK$8.44 on looming trade war. COFCO Meat (01610) declined by 5.6% to HK$3.2. China Yurun Food (01068) dropped 6.9% to HK$1.35.
Export counters also saw intense selling pressure. Techtronic Industries (00669) tumbled 8.4% to HK$55.3. Shenzhou International (02313) dropped 4.6% to HK$102.7. Man Wah Holdings (01999) waned 8.3% to HK$3.86.
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