Hong Kong Market falls on impeachment inquiry against Trump, curbed trade hopes

The Hong Kong share market closed lower on Wednesday, 25 September 2019, following the negative cues overnight from Wall Street after House Speaker Nancy Pelosi announced a formal impeachment inquiry into President Donald Trump. Sentiment was also weaker following the US President's tough comments regarding China at the United Nations, where he castigated Beijing for pursuing an economic model that he claimed had created an unfair playing field. At closing bell, the Hang Seng Index declined 1.28%, or 335.65 points, to 25,945.35. The Hang Seng China Enterprises Index sank 1%, or 102.25 points, to 10,168.78.

Risk sentiments weighed down after House Speaker Nancy Pelosi announced a formal impeachment inquiry into President Donald Trump. Overnight Democratic House speaker Nancy Pelosi formally initiated impeachment proceedings against Mr Trump after US markets closed, accusing the president of betraying his oath of office and national security. Ms Pelosi said the House will look at allegations Mr Trump pressed his Ukrainian counterpart to investigate local business activities of the son of former vice-president Joe Biden. The president has said he will release the transcript of his call with Volodymyr Zelensky.

 

U.S. President Donald Trump delivered a stinging rebuke to China's trade practices on Tuesday at the United Nations General Assembly, saying he would not accept a bad deal in U.S.-China trade negotiations. China's top diplomat hit back at U.S. criticism on Tuesday, saying Beijing had no intention to play the Game of Thrones on the world stage and would respect U.S. interests, but it would not be threatened on trade or allow interference in its affairs, including Hong Kong.

Hong Kong leader Carrie Lam said on Tuesday the city's police force, which has been accused of beating activists and using excessive force during protests, is under extreme pressure and acknowledged it will be a "long road" towards healing rifts.

Blue chips were mixed. HSBC (00005) fell 0.9% to HK$59.4. HKEX (00388) dipped 1.4% to HK$222.6. Tencent (00700) slid 2.2% to HK$328.4. China Mobile (00941) nudged down 0.4% to HK$64.95. AIA (01299) shed 2% to HK$74.5.

Pharmaceutical counters were pressured as the results for the second batch of drugs under group purchasing organization (GPO) saw average price cuts of up to 57%. Sino Biopharmaceutical (01177) sank 5.3% to HK$9.92 becoming the worst blue-chip loser. CSPC Pharmaceutical (01093) dipped 3.7% to HK$15.66. Fosun Pharmaceutical (02196) evaporated 4.6% to HK$21.75. China Medical System (00867) declined by 3.6% to HK$8.91.

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