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Hong Kong Market starts week with losses

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Hong Kong share market closed down at lowest level in almost two weeks in volatile trade on Monday, 15 April 2019, as risk sentiments hurt by tacking selloff in Mainland Market today which fell due to worries about slowing local and global economic growth, shedding earlier gains on the back of stronger lending and optimism in U. S.-trade talks. At closing bell, the dropped 0.33%, or 99.04 points, to 29,810.72, the lowest since 2 April 2019. The Enterprises Index fell 27.98 points or 0.24% to 11,631.86. Turnover increased to HK$110 billion from HK$89.7 billion on Friday.

Investors risk sentiments underpinned in early trade today, on signs of recovery in the world's largest economy after release of stronger-than-expected data last week. After trading ended for the last week, the Peoples of China released credit data that suggested growth exceeded all estimates in March. Risk sentiment is also being boosted by signs the U. S. and China are nearing a trade deal after Treasury said the U. S. is open to facing repercussions if it doesn't live up to its commitments.

The broad-based improvement in the Chinese economy from to price inflation in March has boosted the market sentiment suggesting that the economy is slowly moving towards stabilisation. The pick-up in China's PMI since the last three months have provided some relief to the investors with the March PMI figure at 50.5. The Service activity in China also quickened in March at 54.8 confirming the stability in the Chinese economy. The service sector contributes almost half to the Chinese economy. Last week's encouraging New Yuan loans and money supply surprised the market positively posting increment of 1.69 trillion Yuan in March. Total Chinese Yuan loan in the first quarter of 2019 hit a record of 5.81 trillion Yuan. Also, total social financing, a broad measure of credit in the economy, increased by four times in March at 2.86 trillion Yuan since last month.

This support implies a continuation of the recovery in the economy. Investors will look for further signs of recovery in the Chinese economy in the series of economic data due to be released this week.

Encouraging developments in the U. S.-China trade negotiations also added to the positive sentiment. Last week, said and are making progress on a trade deal, which includes agreeing on an enforcement mechanism. Still, Mnuchin declined to say if the U. S. will use tariffs as an

The is confident of achieving this year main targets including economic growth of between 6% and 6.5%, said on Friday at a business forum in Dubrovnik,

Blue chips were mixed. (00005) gained 0.3% to HK$67.1 after its last Friday told a shareholder meeting that the may continue its buyback on the regulatory approval. HKEX (00388) softened 0.8% to HK$274.4. (00700) shed 1.4% to HK$388.2. AIA (01299) advanced 0.9% to HK$80.

Chinese banks were mostly firmer after China reported better-than-expected new loans of RMB1,690bn in March. CM Bank (03968) edged up 0.5% to HK$40.4. PSBC (01658) gained 1.8% to HK$4.63. ABC (01288) inched up 0.3% to HK$3.61. Insurers were also higher, with NCI (01336) jumping 3.5% to HK$44.75. (00966) added 2.2% to HK$25.35.

Chinese developers rose as Home Purchase Restrictions (HPRs) for 10 cities expired. (01918) gained 1.3% to HK$43.55. (00813) put on 0.8% to HK$26. (02007) added 0.6% to HK$13.24. (02202) nudged up 0.2% to HK$33.55.

counters were mixed ahead of the earnings season. (00941) inched down 0.6% to HK$76.55. China Telcom (00728) was unchanged at HK$4.22. (00762) fell 1.6% to HK$9.69. The company will report its earnings next Tuesday. (00788), which is scheduled to report its earnings on 17 April, rose 1% to HK$2.1 after Morgan Stanley's target price hike.

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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, April 15 2019. 14:23 IST