Hong Kong stocks slump to nearly two-month low, with insurers to techs ending deep in the red as city braces for protests, union strikes
- The Hang Seng Index shed 2.35 per cent on Friday, bringing its losses for the week for the week to 5.2 per cent
- Washington’s push for additional 10 per cent tariff on Chinese goods starting next month bashes hopes for resolution to trade war
Hong Kong stocks fell to a nearly two-month low on Friday, as investors were caught off guard by a surprise escalation of the US China trade war and fears that the local economy will continue to deteriorate amid unresolved protests.
The Hang Seng Index lost 2.35 per cent to close at 26,918.58, reflecting the biggest decline since May 9 and its lowest close since June 5. The benchmark was dragged for a 5.2 per cent loss for the week, while Friday’s turnover at HK$114.2 billion (US$14.59 billion), was the highest since June 21.
The Shanghai Composite Index ended the day 1.4 per cent lower at 2,867.84, its biggest single-day drop since July 8. The CSI 300, which tracks blue chips in Shanghai and Shenzhen, fell 1.5 per cent to 3,747.44.
Investors were rattled by escalating trade tensions, after US President Donald Trump said on Thursday that Washington would apply a 10 per cent tariff on US$300 billion worth of additional Chinese goods starting September 1, adding that the tariff could be raised in stages and go beyond 25 per cent.
Alex Wong, a director at Ample Finance Group, said share trading in Hong Kong was weighed down by concerns that the city’s economic outlook will be negatively affected by continuing protest and a citywide strike action on Monday organised by the Confederation of Trade Unions.
“Intraday there was actually some selective bottom fishing of stocks that had dropped considerably this week. The problem now is that both within and outside Hong Kong, the economic outlook is deteriorating,” said Wong.