Market Trends: Hong Kong stocks trimmed early gains

Equities, Stock Market, Economy

Hong Kong stocks trimmed early gains to end slightly firmer on Wednesday, as bleak China economic data overshadowed U.S. President Donald Trump’s trade concession, as reported in Reuters

The Hang Seng index ended up 0.1% at 25,302.28, while the China Enterprises Index gained 0.2% to 9,866.18.

The benchmark HSI started the day 1.7% higher, after Washington delayed tariffs on some Chinese imports.

According to the report, U.S. President Donald Trump on Tuesday has backed off his 1 September deadline for 10% tariffs on remaining Chinese imports – delaying duties on cellphones, laptops and other consumer goods, in the hopes of blunting their impact on U.S. holiday sales.

China’s economy stumbled more sharply than expected in July, with industrial output growth cooling to a more than 17-year low, as the intensifying U.S. trade war took a heavier toll on businesses and consumers.

Activity in China has continued to cool despite a flurry of growth steps over the past year, raising questions over whether more rapid and forceful stimulus may be needed, even if it risks racking up more debt. Additionally, worries persisted over the protests that threatened to hit the city’s economy.

Top Gainers/ Decliners

Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.61%, while Japan’s Nikkei index closed up 0.98%.

The yuan was quoted at 7.0135 per U.S. dollar at 0815 GMT; 0.6% firmer than the previous close of 7.0558.

Meanwhile, the report showed top gainers among H-shares being:

  • ANTA Sports Products Ltd, up 2.81%
  • Longfor Group Holdings Ltd , gaining 2.81%
  • Tencent Holdings Ltd, climbed by 2.46%

On the other hand, the three biggest H-shares percentage decliners were:

  • SINOPHARM GROUP CO LTD, which closed down 3.04%
  • Huatai Securities Co Ltd, which ended 2.60% lower
  • Guangzhou Automobile Group Co Ltd, down by 2.19%.

At close, China’s A-shares were trading at a premium of 32.60% over Hong Kong-listed H-shares.

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Last updated on

August 15th 2019, 12:14 pm

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