Hong Kong stocks set for worst week in over 3 months; China flat

1 BUSINESS

Business News - Opportunities - Reviews

 

 

* SSEC 0.0%, CSI300 0.0%, HSI 0.3%

* HK->Shanghai Connect daily quota used 2.2%, Shanghai->HK daily quota used 2.5%

* FTSE China A50 +0.2%

SHANGHAI, Nov 15(Reuters) – Hong Kong stocks rose on Friday, but were poised for their worst week in more than three months, on concerns over the persistent political unrest and uncertainty around Sino-U.S. trade deal.

** The Hang Seng index added 0.3%, to 26,408.86 points, while the Hong Kong China Enterprises Index gained 0.1%, to 10,437.09 points.

** Both indexes were on track for their steepest weekly losses since the week of Aug 2.

** The Hong Kong government condemned on Friday an attack by a “violent mob” on the city’s justice secretary in London, the first direct altercation between demonstrators and a government minister during months of often violent protests.

** Hong Kong is expected to confirm on Friday it plunged into recession for the first time in a decade, amid concerns the economy could be in even worse shape than feared as months of anti-government protests take a heavy toll.

** The U.S. Congress should enact legislation that would suspend the special economic status Hong Kong enjoys under U.S. law should China deploy forces to crush protests in the territory, a congressional advisory body said on Thursday.

** The economy of Hong Kong has fallen into a technical recession, with the social unrest weighing markedly on Hong Kong’s real estate, retail and hotel industries, GF Securities noted in report.

** Considering the “lagged effect” of the social events, the deterioration of the fundamentals of those Hong Kong local companies is yet to end, the brokerage added.

** There have also been worries about the Sino-U.S. trade relations in absence of concrete details of a proposed trade deal.

** China and the United States are holding “in-depth” discussions on a first phase trade agreement, and cancelling tariffs is an important condition to reaching a deal, the Chinese commerce ministry said on Thursday.

** The United States and China are getting close to a trade agreement, White House economic adviser Larry Kudlow said on Thursday, citing what he called very constructive talks with Beijing about ending a 16-month trade war.

** On the mainland, major indexes were flat, but were also set for weekly losses.

** The CSI300 index was unchanged at 3,904.69 at the end of the morning session, while the Shanghai Composite Index was flat at 2,910.82.

** Both indexes were on track for biggest weekly losses since late Sept.

** Latest data showed China’s factory output growth slowed significantly more than expected in October, as weakness in global and domestic demand and the drawn-out Sino-U.S. trade war weighed on broad segments of the world’s second-largest economy.

** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.63% while Japan’s Nikkei index was up 0.74%.

** The yuan was quoted at 7.0079 per U.S. dollar, 0.17% firmer than the previous close of 7.02.

** So far this year, the Shanghai stock index is up 16.68%, while China’s H-share index is up 3.0%. Shanghai stocks have declined 0.66% this month.

** As of 04:02 GMT, China’s A-shares were trading at a premium of 29.61% over the Hong Kong-listed H-shares. (Reporting by Luoyan Liu and John Ruwitch; editing by Uttaresh.V)

1 BUSINESS

Business News - Opportunities - Reviews

 

 

Leave a Reply