HONG KONG: The Hong Kong stock market closed lower on Monday, weighed down by the falling mainland market and concerns over the US-China trade conflict continued to limit investors’ appetite.
The Hang Seng index was down 1.38 percent at 25,445.06. The Hang Seng China Enterprises index fell 1.5 percent to 10,144.34.
Hong Kong stocks were led lower by the China markets, which also closed down on Monday, ending a short-lived rebound on Friday.
A reversal in the two markets is unlikely until the participants see more positive developments in the ongoing US-China trade dispute, especially now that the Chinese currency appears to be centre-stage in that tug of war.
“We heard there will be talks between Xi Jinping and Donald Trump, then we did not have an update from that. I think people will be very careful, at least until we know if the US will call China a currency manipulator,” said a Hong Kong-based head of sales at a brokerage.
With the trade war theme still looming large, IT stocks underperformed. The sub-index of the Hang Seng tracking the IT sector dipped as much as 3 percent, before closing at 2.5 percent.
The biggest loser on the Hang Seng was AAC Technologies Holdings Inc, down 7.85 percent. The share price of the company, an iPhone products supplier, hit a 22-month low.
The top gainer on Hang Seng was Sino Biopharmaceutical Ltd , up 3.38 percent. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 1 percent, while Japan’s Nikkei index closed down 1.87 percent.
The three biggest H-shares percentage decliners were Guangdong Investment Ltd, down 5.45 percent, China Huarong Asset Management Co Ltd, which fell 4.14 percent and Dongfeng Motor Group Co Ltd, down 3.76 percent.
The top gainers among H-shares were ZhongAn Online P & C Insurance Co Ltd up 2.19 percent, followed by People’s Insurance Group of China Co Ltd, gaining 1.43 percent and PetroChina Co Ltd, up 0.67 percent.
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Source: Brecorder
