bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

authorLocations

authors

paywallTypes

corrections

sponsorType

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Georgina Lee

Deb Price

The protests roiling Hong Kong spilled over to its stock market Monday, as property developers suffered steep losses amid concerns that the ongoing demonstrations threaten retail rents as well as residential property sales.
Hong Kong’s Hang Seng Index closed down 1 per cent to 28,106.41, with property stocks the top losers, tumbling 2.2 per cent.
But the Hang Seng narrowed earlier losses of 1.6 per cent, as investor sentiment appeared to be buoyed by an unprecedented news conference by Chinese spokespersons at the office that oversees Hong Kong.
They offered “resolute support” for city leader Carrie Lam and the police, and said the protests have “created serious negative impacts for Hong Kong in economic … aspects. This is disheartening to people who treasure Hong Kong.”
It was the first time the Hong Kong and Macau Affairs Office has held a press briefing on the city, which was handed back to China in 1997 by Britain.
American Chamber of Commerce in Hong Kong urges ‘clear leadership’, investigation after more extradition bill clashes
Louis Tse Ming-kwong, the managing director of VC Asset Management, said the news conference “served a specific purpose – to try to calm everybody down.” It should act as a “stabiliser” for the Hang Seng, said Tse, who expects investors to next turn to two big agenda items of the week – US China trade talks, which begin Tuesday in Shanghai, and the expected rate cut by the US Federal Reserve on Wednesday Washington time.
Trading was listless in China, where traders were taking a break from last week’s specular run-up on the new Star Market, being touted as China’s answer to the Nasdaq in America.
China STAR Market stocks lose trader interest as ‘temporary craziness’ wears off, curbs kick in
Tse said he expects traders will take their next cues from those two drivers.
Wharf Real Estate Investment, which focuses on shopping malls and other commercial properties, was the leading loser on the Hang Seng, falling 4.7 per cent to HK$48.40.
New World Development, whose business portfolio includes department stores and hotels, fell 3.6 per cent to HK$11.26. MTR, whose property development business contributed some 20 per cent of its profits last year, fell 3.2 per cent to HK$52.10. Link REIT, which has retail facilities including shopping centers, fell 2.8 per cent to HK$92.35.
Sun Hung Kai, whose weekend sales were dampened by the protests, closed down 0.6 per cent at HK$127.20.
“For someone who is more pessimistic and believes that the current turmoil will drag on for months, then I’d say there could be a 10-15 per cent downside in share price in some of the leading Hong Kong property developers,” said Alex Wong, a director at Ample Finance Group.
US Federal Reserve rate cut could boost Hong Kong-listed bank shares, weigh on weaker property developers, experts say
The American Chamber of Commerce in Hong Kong urged the city government to resolve the crisis and restore international business confidence.
In a survey of its members, AmCham said it found businesses are already reporting serious consequences from the demonstrations.
“These range from an immediate hit to revenue caused by disruption to supply chains and consumption, to longer term doubts over cancelled events and shelved investments. Respondents also reported a deepening perception within their companies and among overseas customers that Hong Kong has become less safe and a riskier place in which to conduct business,” AmCham said in a news release.
“While members made clear Hong Kong’s many unique competitive advantages remain largely intact, they voiced concern that a failure to address the instability and worsening perceptions toward the city now may lead to irreparable damage over the long term.
In China, the CSI 300 and the Shanghai Composite Index were down 0.1 per cent, ending at 3854.27 and 2941.01 respectively.
The Shenzhen Component Index edged up by less than 0.1 per cent, at 9,354.28.
Leading the index lower in Shanghai was Industrial and Commercial Bank of China, which slipped 0.7 per cent to 5.65 yuan, after it said its wholly-owned unit, ICBC Financial Asset Investment, will invest up to 3 billion yuan for a 10.82 per cent stake in the troubled Bank of Jinzhou.
Huatai Securities dropped 4.7 per cent, to 20.4 yuan as the third biggest stock in turnover, after the brokerage said some 1.09 billion of its shares would be released after their lock-up period expires on August 2, meaning an additional supply of stocks equivalent to 12 per cent of the company’s total outstanding share capital will be released.
Star stocks began trading under curbs for the first time on Monday, with a maximum movement of 20 per cent up or down. Diamond cutting tool maker Beijing Worldia Diamond was the only stock that hit the daily 20 per cent up limit, closing at 88.68 yuan.
Additional reporting by Daryl Choo


Hong Kong stocks rebound from US$196 billion rout on China PMI reports, NPC meeting

Taking stock: all eyes on China’s ‘two sessions’ for catalysts to drive AI-fuelled rally

Trump’s escalated China tariff threat wipes away US$196 billion from Hong Kong stocks

China’s robotics star Unitree warns of scams as investors seek a way in

China stock market

Hang Seng falls on protest worries, but investor sentiment appears to get late boost from Chinese officials addressing crisis

A man monitors stock prices at a brokerage in Beijing on June 25, 2019. Photo: Associated Press

American Chamber of Commerce in Hong Kong urges Chief Executive Carrie Lam to ‘restore business confidence’ after protests against extradition bill

Tara Joseph, president of the American Chamber of Commerce in Hong Kong. “People understand the value of Hong Kong,” she said. Photo: May Tse

President of AmCham Hong Kong Tara Joseph photographed at AmCham Hong Kong office at Bank of America Tower in Central. 18JUN19 SCMP/ May Tse

China STAR Market stocks lose trader interest as ‘temporary craziness’ wears off, curbs kick in

A Chinese investor monitors stock prices at a brokerage in Beijing on July 19, 2019. Photo: Associated Press

US Federal Reserve rate cut could boost Hong Kong-listed bank shares, weigh on weaker property developers, experts say

A bronze sculpture of a bull, the symbol of the Hong Kong Stock Exchange, at the Exchange Square in Central. Photo:Warton Li

Business

Companies

Money

Stock Talk

Markets & Investing

China Business

Markets

Property stocks fall the most in city on concerns about protest impact on retail rents and property sales
China spokespersons offer ‘resolute support’ for city leader, police


The Hang Seng narrowed earlier losses as investor sentiment appeared to be buoyed by Chinese spokespersons who offered “resolute support” for city leader Carrie Lam and the police.


Hong Kong Stock Exchange

Stock Connect

Stocks

Hang Seng falls on protest worries, but investor sentiment appears to get late boost from Chinese officials addressing crisis

Property stocks fall the most in city on concerns about protest impact on retail rents and property sales China spokespersons offer ‘resolute support’ for city leader, police

Property stocks fall the most in city on concerns about protest impact on retail rents and property sales

China spokespersons offer ‘resolute support’ for city leader, police