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Hang Seng, Shanghai Composite post monthly losses in July, as ongoing trade battling between the US and China bites

  • Hang Seng ends July with monthly loss of 2.68 per cent
  • US Federal Reserve expected to cut rates overnight

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Buses slow in Wan Chai as Tropical Cyclone Wipha left Hong Kong drenched in rain. Photo: Tory Ho
Georgina LeeandDeb Price

July was a washout for Hong Kong investors, mercifully ending early when tropical storm Wilpha forced the stock exchange to close not long after the lunch break.

The monthly loss for the Hang Seng Index – only the second this year – stood at 2.68 per cent, as investors dealt with massive demonstrations, mixed company earnings and dashed hopes for real progress toward ending the trade war between the world’s two largest economies. In May, when trade negotiations unravelled, it posted a 9.42 per cent loss.

The benchmark ended the shortened Wednesday trading session down 1.3 per cent, at 27,777.75 points. It was the first time the Hang Seng had fallen below the 28,000 level since June 18.

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In a negative sign, market turnover on the main board totalled HK$60.3 billion, almost reaching the same full day level on Tuesday at HK$61.7 billion, as traders sold down stocks on Hong Kong economic concerns.

Hong Kong’s second-quarter GDP shrank 0.3 per cent from the first quarter, worse than the expected 0.9 per cent growth.
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