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HONG KONG (Nikkei Markets) – Hong Kong stocks are down on Monday, weighed down by losses in financial and technology heavyweights, while Sino-US trade tensions have continued to weigh on confidence.
The Hang Seng index had lost 0.6% to 27 188.85 at noon. Tencent Holdings, the most profitable company listed in Hong Kong, lost 1.5%. Chinese banks China Construction Bank and Industrial & Commercial Bank of China lost respectively 0.8% and 0.4%, while Ping An Insurance Group lost 0.5%.
The city's main stock index has lost 8.5% since May, due to intensifying trade tensions between the world's two largest economies in recent weeks. Earlier this month, Washington increased tariffs on Chinese goods for $ 200 billion, prompting Beijing to respond that the Asian nation would implement retaliatory tariffs in June. Chinese technology stocks became the star after the United States added Huawei Technologies to a list of entities that would require government approval to buy components and technologies from US companies. This decision was granted a 90-day stay last week.
Huawei's supplier, Sunny Optical Technology Group, was down 2.8% Monday at midday, bringing its losses for the month to more than 31%.
The local stock market does not have much strength to bounce back at this point, said Louie Shum, managing director of Sincere Securities.
He said the support for the gauge was around 26,800 points, but added that in a market "based on political news, the levels of technical support are less useful".
The People's Bank of China and the China Banking and Insurance Regulatory Commission announced on Friday that they will take control of Baoshang Bank for one year to limit its credit risk. The central bank announced Sunday that the banking regulator will offer more political support to improve corporate governance in small and medium banks.
Baoshang Bank's question over the weekend is a "concern," Shum added. "It's only when a bank is experiencing serious problems that it will be supported." Investors should not buy Chinese banks now, because of regulatory hurdles and the macroeconomic slowdown. "
On the continent, Shanghai's composite index rose 0.3%, while the foreign-traded yuan rose 0.1% against the dollar, to 6.8922.
Travel products and services provider Tongcheng-Elong Holdings grew 2.3% in Hong Kong. The index provider FTSE Russell announced Friday that Tongcheng-Elong would be included in large-cap stocks in the FTSE Global Equity Index Series.
Sihuan Pharmaceutical Holdings Group added 3% after stating that its polyvinyl chloride-free dual chamber bag for ceftazidime / sodium chloride injection had been approved for registration by the National Medical Products Administration. China.
The Dongjiang Environmental Waste Treatment Company declined 0.4% after stating that a fire accident had occurred in a warehouse of a production base operated by the company. Hubei Tianyin unit of centralized storage of hazardous waste. The company said the losses were the subject of an investigation and that the incident would probably not have a significant impact on production.
The operator of the Tsui Wah Holdings chain of restaurants fell 6.6% after predicting a decline in profits of more than 70% for the year ended March 31st.
The Sanai Health Industry Group fell 87.4% after the pharmaceutical manufacturer said it was warned by Hong Kong Exchanges & Clearing that the stock market operator had decided to suspend trading in the shares of the company. company sufficient value.
– Amy Lam
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