Hong Kong Stocks falls on global trade concerns

Headline indices of the Hong Kong share market were lower on Tuesday, 04 June 2019, as investors remained cautious about the global economy due to heightened international trade frictions. The internal and external factors could deteriorate in June, as China's economic data weakened further, and as there are no signs of easing in Sino-U.S. trade tensions. Around late afternoon, the Hang Seng Index declined 0.7%, or 182.92 points, to 26,710.94. The Hang Seng China Enterprises Index was down 1.05%, or 109.05 points, to 10,321.59.

Investors remained risk-averse amid concerns heightened international trade frictions could derail the global economy, due to U.S. President Donald Trump's tariff threat on all imports from Mexico on last Thursday and China's imposition of retaliatory tariffs on U.S. goods Saturday.

 

Shares of China rare earths issues declined on profit taking, with China Rare Earth (769 HK) down 6.2% at HK$0.61.

Shares of casino operators declined after Hainan Province has abolished its provincial level laws about gambling. Melco International (00200) sank 3.6% to HK$14.84. Sands China (01928) declined by 3.1% to HK$33.25. SJM Holdings (00880) retreated 2.8% to HK$8.42. MGM China (02282) dipped 1.2% to HK$11.36. Galaxy Entertainment (00027) inched down 0.3% to HK$46.2. Wynn Macau (01128) fell 2.1% to HK$15.2.

Shares of Chinese pharmaceutical producers declined, after the government commenced a nationwide audit of 77 major drug companies including the Chinese units of Sanofi, Eli Lilly and Bristol-Myers Squibb, following an accounting scandal at one of the country's largest listed firms.

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