Hong Kong Market falls 0.13%

Headline indices of the Hong Kong share market declined after giving up early gains on Friday, 03 August 2018, as fresh U.S.-China trade worries overshadowed positive sentiment emanating from technology-led gains on Wall Street overnight. Around afternoon, the Hang Seng Index dropped 35 points or 0.13% to 27,679.56. The Hang Seng China Enterprises Index fell 45.82 points or 0.43% to 10,687.37. The sub-index of the Hang Seng tracking Utilities shares rose 0.7% and the Commerce & Industry sector rose 0.03%, while properties sector fell 0.6% and the financial sector was 0.2% up.

Investors cautious mood came amid an elevation in trade tensions between the world's top two economies intensified midweek after US President Donald Trump raised pressure on China by proposing a higher 25 percent tariff on $200 billion worth of Chinese imports from a previously announced 10 percent. China responded on Thursday, saying that it would hit back if the United States takes further steps hindering trade, including applying the higher tariff rate.

The United States has already slapped 25% tariffs on Chinese goods worth $34 billion to punish Beijing for what it says are its unfair trade practices. China immediately responded with equal measures.

Investors are becoming increasingly concerned about how the slowing Chinese economy will fare in a major trade spat with the United States. Data released earlier this week suggested that the Chinese economy is already starting to feel pain from US tariffs introduced over the last few weeks. China's July purchasing managers index, which measures the health of the manufacturing sector, suggested the country's huge export industry is cooling.

Investors also remain cautious ahead of the July US jobs report due later on Friday, which will give a reading on the health of the world's largest economy and possible clues about the pace of Federal Reserve interest rate rises.

Among heavyweights, Tencent (00700) rebounded 1.6% to HK$350.6 after days of decline. HSBC (00005) slipped 0.8% to HK$72.25. China Mobile (00941) edged down 0.1% to HK$69. AIA (01299) was up 0.5% to HK$66.25.

Shares of utilities counters rose as defensive buying amid uncertainties. Power Assets (00006) rose 0.6% to HK$55.2. Hong Kong and China Gas (00003) put on 1% to HK$15.64. CLP Holdings (00002) added 0.6% to HK$87.4.

Shares of Macau gaming counters were mixed. MGM China (02282) gained 1.8% to HK$16.64. Galaxy Entertainment (00027) plunged 3.3% to HK$56.9 on a newswire report saying that the Philippine Government decided to temporarily close casino project in Boracay.

NEWS FROM THE PRESS: CKH Holdings H1FY18 net up 13% -- CK Hutchison Holdings net profit rose 13% to HK$18,020 million on the back of 16% growth in total revenue to HK$224,507 million for the six months ended June 2018. The board declares an interim dividend of HK87 cents (2017: HK78 cents) per share, payable on 13 September 2018.

CK Asset net up 65% in H1FY18 -- Cheung Kong Property net profit rose 65% to HK$24,753 million in spite of 19% drop in revenue to HK$24,118 million for the six months ended June 2018. Revenue of property sales (including share of joint ventures) recognised for the period was HK$9,109 million, down 140% year-on-year. Revenue of property rental (including share of joint ventures) for the period was HK$3,880 million, down 0.23% year-on-year. The board of directors have declared an interim dividend for 2018 of HK47 cents (2017: HK42 cents) per share, payable on 13 September 2018.

ECONOMIC NEWS: The Land Registry said on Thursday, 2 August 2018, that the number of sale and purchase agreements for all building units received for registration in July was 8,466, a decrease of 8.5% compared with June but an increase of 55% from a year earlier. The 12-month moving average for July was 7,569, 3.4% above the 12-month moving average for June and 1.6% above that for the same month last year.

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