Hong Kong Market slides for third straight session

The Hong Kong share market ended down for third straight session after seesawing between gains and losses on Wednesday, 28 August 2019, as economic concerns continue to weigh on sentiment. Market losses were, however limited after China announced stimulus measures aimed at raising consumption, including a potential removal of restrictions on car purchases At closing bell, the Hang Seng Index dropped 0.2%, or 48.59 points, to 25,615.48. The Hang Seng China Enterprises Index was down 0.15%, or 15.46 points, to 9,980.73.

Secretary for Commerce and Economic Development of Hong Kong Edward Yau said the city's GDP in the third and fourth quarter could face pressure after a new wave of US tariffs on China goods, which take effect September 1 and October 1. He described the US decision to levy tariff on all Chinese goods a total war on commodity trade.

 

China's State Council told local governments that have restrictions on auto sales to gradually relax or remove them. The State Council also said they should encourage purchases of new energy vehicles by providing active support. Investors continue to bet Beijing will offer more stimulus measures to boost consumption amid the ongoing trade war with the US.

Blue chips were mixed. HSBC (00005) was unchanged at HK$56.05. HKEX (00388) inched up 0.1% to HK$241.6. Tencent (00700) dipped 2.2% to HK$319. China Mobile (00941) gained 0.9% to HK$66. AIA (01299) was flat at HK$75.35.

Pharma stocks declined on profit boking. CSPC Pharmaceutical fell 4.9% to HK$15.5, after posting gains for nine straight sessions. Sino Biopharmaceutical, a Hong Kong-based drug maker, closed down 3.45% at HK$10.62, after posting gains for the previous eight straight sessions.

Conglomerate Fosun International (0656 HK) rose 4% to HK$9.95, after reporting a 57% year-on-year jump in revenue to a record high of 65.5 billion yuan (US$9.2 billion) and a net profit increase of 11% to 7.6 billion yuan.

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