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Hong Kong Market falls on China economy concerns, trade war worries

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Capital Market
Last Updated : Sep 05 2018 | 5:04 PM IST
Hong Kong share market closed down on Wednesday,05 September 2018, as investor appetite for riskier assets hurt by worries about China's economic health after growth in China's services sector weakened again in August. Meanwhile, selloff pressure intensified on fears of a further escalation in the U.S.-China trade war after US President Donald Trump has told aides he is ready to impose tariffs on $200 billion more in Chinese imports as soon as a public comment period on the plan ends this week. At closing bell, the Hang Seng Index tumbled 729.49 points or 2.61% to 27,243.85. The Hang Seng China Enterprises Index tanked 244.93 points or 2.25% to 10,645.70. The sub-index of the Hang Seng tracking the Commerce & Industry sector fell 3.1%, the financial sector was 2.2% lower, properties sector fell 3.2%, and Utilities sector dropped 1.6%. Turnover increased to HK$95.2 billion from HK$72 billion on Tuesday.

The services sector in China expanded at a slower pace in August. Caixin services sector growth score came in at 51.5, its 10-month low figure and down from 52.8 in July. The composite index fell to a five-month low of 52.0 in August from 52.3 in July.

Investors were wary of further escalation in trade disputes between Washington and Beijing, with a deadline for public comments on proposed U.S. tariffs on an additional $200 billion of imports from China ending on Thursday. U.S. President Donald Trump has said he will introduce the tariffs soon after. If implemented, the duties will be the third round of levies imposed by the Trump administration since July.

Investors were also eyeing the latest in the ongoing spat between the US and Canada after President Donald Trump again threatened to leave Canada out of a revamped North American Free Trade Agreement.

Shares of restaurant-chain operator Li Bao Ge Group tanked 3.8% at HK$0.385 as they began trading on the city's main board, following a transfer from the Growth Enterprise Board for smaller companies.

Shares in I-Cable Communications slumped 19.2% on profit booking after strong rally in the last two days, following the company's deal to provide services to a unit of China Mobile. The television and telecommunication services provider on Tuesday said it is in talks with a financial adviser to explore fundraising options, but has no definitive plan nor has it entered any binding agreements as of date.

Shimao Property Holdings slid 4.5% and Agile Group Holdings retreated 4.7% despite reporting an increase in August sales. Shimao's contracted sales more than doubled in August from a year earlier, while Agile's sales grew 18.8%.

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First Published: Sep 05 2018 | 4:43 PM IST

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