Hong Kong Market rises 1.73%

Headline indices of the Hong Kong share market inclined on Friday, 21 September 2018, with investor sentiment buoyed by hopes that a Chinese government effort to boost domestic demand could help offset effects of an escalating trade war. A detailed document issued late Thursday by the State Council, China's cabinet, ordered policies and resources to be geared towards sectors including tourism and sports to help give a broad-based boost to domestic consumption. The Hang Seng Index added 475.91 points or 1.73% to 27,953.58. The Hang Seng China Enterprises Index rose 234.54 points or 2.17% to 11,027.13. The sub-index of the Hang Seng tracking the Commerce & Industry sector added 1.2%, properties sector rose 1.3%, and financial sector was 2.6% up, while Utilities sector fell 0.9%. Turnover soared to HK$130.6 billion from HK$86.8 billion on Thursday.

Investors brushed aside the tariffs on an additional US$200 billion of Chinese goods unveiled this week by Washington to focus on domestic policies. The administration of U.S. President Donald Trump announced Monday that it will impose a 10% tariff on $200 billion worth of Chinese imports from Sept. 24 and increase the rate to 25%, effective on Jan. 1 next year. In response, China said it will hit back with retaliatory duties of up to 10% on $60 billion worth of U.S. products.

The China's State Council promulgated guidelines on boosting consumption on Thursday night and the nation's top planning body pledged this week to put more investment projects in place. Premier Li Keqiang hinted taxes and social-security levies for companies could be lowered at the World Economic Forum in Tianjin on Thursday.

Automakers rose across the board. Geely Automobile Holdings climbed 11 per cent to HK$16.58. Great Wall Motor (02333) surged 8.9% to HK$5.53. GAC Group (02238) shot up 6.9% to HK$8.7. Dongfeng Motor (00489) jumped 6.8% to HK$8.36. BYD (01211) bounced 6.1% to HK$54.8.

New World Development rallied 5.8 per cent to HK$10.96 after it reported strong earnings yesterday and triggered a slew of upgrades from research houses. JPMorgan Chase lifted its rating on the stock to overweight from neutral on prospects of improving gearing and earnings. Other property counters were also higher. Henderson Land (00012) nudged up 0.3% to HK$40.1. Sun Hung Kai Properties (00016) gained 0.5% to HK$116.9. Sino Land (00083) put on 1.2% to HK$13.82. CK Asset (01113) added 0.8% to HK$60.75.

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