Stocks Blog: Hang Seng ends lower amid Cathay decline, flight cancellations

  • Mainland China markets boosted by margin financing, short selling relaxation 
  • Hang Seng Index ends day 0.44 per cent down at 25,824.72

Market sentiment looks set to be cautious on Monday after a battering last week, following China’s yuan breaching the psychological threshold of 7 against the US dollar, escalating the
US-China trade war
On Friday, Chen Yuan, a former deputy governor of the People’s Bank of China, said at a
China Finance 40 meeting in Yichun, Heilongjiang province
, that the US labelling China a currency manipulator “signifies the trade war is evolving into a financial war and a currency war”. He said policymakers must prepare for long-term conflicts.

US President Donald Trump, meanwhile, said it was “fine” if planned talks in September were called off.

In Hong Kong, protests continued to escalate for a 10th consecutive weekend, with police again using tear gas against protesters, who hurled projectiles and petrol bombs. The social unrest is the biggest challenge to Chinese control of the city since it was handed back by the UK in 1997, and is increasingly starting to impact the economy.
Markets in Japan, Singapore, India, Malaysia, Philippines and Thailand are shut for various public holidays on Monday.

Stay with us, Azar Zaidi and Louise Moon in Hong Kong, as we track developments in the Hong Kong and mainland China markets.