Hong Kong Market extends losses for third day

The Hong Kong share market declined for third day in row on Wednesday, 18 September 2019, on concerns over US-China trade dispute and ahead of US Federal Reserve's policy announcement later in the day. At closing bell, the Hang Seng Index declined 0.13%, or 36.12 points, to 26,754.12. The Hang Seng China Enterprises Index sank 0.23%, or 23.87 points, to 10,478.50.

Investors were awaiting for the Fed's latest decision on monetary policy, set to be released later on global day, with expectations high for an additional rate cut henceforth in response to slowing global economic growth and muted inflation. Chairman Jerome Powell will hold a post-decision press conference Wednesday.

 

Investors are also closely monitoring development in the U.S.-China trade talks. U.S. and Chinese deputy trade negotiators are due to meet in Washington this week, to the pave way for high-level talks in early October. U.S. President Donald Trump said on Tuesday his administration could seal a deal on trade with China before the U.S. presidential election, or an agreement could be reached the day after voters go to the polls.

On September 1, the United States added 15 per cent tariffs on some US$130 billion of Chinese-made goods and China added its own tariffs on hundreds of US products, including agricultural items. It was the latest escalation in a trade war that has raged for more than a year and seen tariffs placed on more than half of all Chinese imports to the US. Since then, the world's two biggest economies have agreed to resume face-to-face trade talks next month and Trump has delayed another tariff increase until after National Day celebrations in China on October 1 as a gesture of good will.

Blue chips closed mixed. HSBC (00005) nudged up 0.2% to HK$59.85. HKEX (00388) moved up 0.3% to HK$233.2. Tencent (00700) softened 0.2% to HK$343. China Mobile (00941) fell 0.5% to HK$65.7. AIA (01299) rose 0.7% to HK$78.9.

Smartphone component suppliers rose on reports that the newly launched iPhone 11 saw strong buying orders. AAC Technologies (02018) rose 10.2% to HK$44.4. Sunny Optical (02382) added 0.3% to HK$116.9. Q Technology (01478) surged 7.4% to HK$9.17. BYD Electronic (00285) gained 5% to HK$12.1. FIT Hon Teng (06088) marched 1.7% to HK$3.51. Truly International (00732) advanced 11.3% to HK$1.18. Tongda Group (00698) added 6.2% to HK$0.69. China Display Optoelectronics (00334) surged 13.7% to HK$0.54.

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