China markets slip, with Hong Kong stocks falling to 7-month low as US tariffs loom
Health care and pharmaceuticals, as well as firms with exposure to US market lead declines
Stocks in Hong Kong dropped to their lowest closing level in seven months on Wednesday led by heavy selling in pharmaceuticals and tracking declines in shares on mainland China, as the deadline for the White House to impose the first round of tariffs on Chinese goods draws nearer.
With the Trump administration set to implement US$34 billion of tariffs on imports of Chinese goods on Friday, Beijing is expected to retaliate with equivalent measures, elevating the current verbal conflict between the world’s two largest economies into a real trade war.
The Hang Seng Index dropped 1.1 per cent, or 303.9 points, to 28,241.67, marking the lowest close since December 6. On Tuesday, it touched a four-month low of 27,990.45 before finishing at 28,545.57, failing to make a clean break below the 28,000 level, where market players said was forming a strong support for the coming days.
“The benchmark index should fluctuate around these levels as people stay cautious ahead of Friday’s tariffs,” said Stanley Chan, research director at Emperor Securities.
The Hang Seng China Enterprises Index dropped 1.5 per cent, or 159.56 points, to 10,712.64.