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Real estate companies suffered heavy losses Friday in Hong Kong, when the arrest of prominent personalities favorable to democracy erased a first manifestation of the Hang Seng index, fueled by fears of further violence in the city.
The news of these arrests has eclipsed a significant advance in other Asian markets after China said it would not react against the latest US tariffs, which would hope for easing trade tensions between the US giants. # 39; s economy.
Police on Friday held Joshua Wong and Agnes Chow a day before another mass rally scheduled for the fifth anniversary of Beijing's rejection of a call for universal suffrage in the city, which sparked the Umbrella Movement in 2014.
A few hours earlier, another pro-independence activist was arrested at the Hong Kong airport.
The arrests are a sign of "the spread of" white terror "towards Hong Kong protesters," said Issac Cheng of Wong's Demosisto party, using a term referring to China's efforts to fragment the protest movement.
Recent developments have raised fears that protests that have been going on for months and are becoming increasingly violent will continue for some time or may even see the government impose emergency laws.
"The developers are down from the arrests of this morning," Jackson Wong, director of asset management at Amber Hill Capital, told Bloomberg News.
"Now, people are really worried that Hong Kong will have exceptional laws, and real estate stocks are the most sold, because if Hong Kong is no different from other Chinese cities, it is difficult to retain talent and real estate prices will not find any support. "
The Hang Seng eventually reached 0.08% to 25,724.73.
The Shanghai Composite Index's benchmark index fell by 0.16% to 2886.24 and the Shenzhen Composite Index, which tracks the shares of China's second largest stock exchange, fell by 0.74% to 1 579.25.
Among the most affected, Swire Properties plunged 3.56%, Sino Land sank by 1.75%, Sun Hung Kai Properties by 1.77% and New World Development by 1.81%.
The IHS had opened more than 1% after China Thursday appeared to want to ease trade tensions, saying it would refrain from reacting similarly to US tariffs, as it had previously announced.
The news was a big relief for the global markets, which were hit by volatility this week during the stalemate.
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