Name: SCMP
Telephone: +852-2680-8888

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

sponsorType

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

seriesContainer

printHeadline

socialHeadline

headline

glossary

flattenTypeIds

paywallTypes

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

factSheets

series

summary

updatedDate

flag

knowledgeQuestion

disableOffPlatformContent

published

subHeadline

body

keywords

copyrighted

customTimezone

liveContents

Xie Yu

Azar Zaidi

The global economy is expected to be in focus in Asia on Wednesday following weak US manufacturing data overnight. The data comes on the heels of disappointing figures from Europe earlier this week.
The US will remain in focus this week, with attention now turning to the ADP employment report due on Wednesday and the monthly jobs report on Friday. Moreover, slowing growth globally, coupled with the US-China trade war, has sparked yet more speculation about US Federal Reserve interest rate cuts this year.
With the China markets resuming trading only on October 8, we will sharpen our focus on Hong Kong, which witnessed its worst day of violence on Tuesday amid anti-government protests that are in their fourth month now.
Follow us, Xie Yu and Azar Zaidi in Hong Kong, as we keep track of the day’s developments. If you would like to receive the Stocks Blog each trading day via email, shoot a message to Deb Price (deb.price@scmp.com) and she will add you to the list.


Stocks Blog: Weighed down by Tencent, MTR, Hang Seng closes 0.2 per cent lower after lacklustre day of trading

Business

Markets

Retailers, financial services providers and utilities are among Wednesday's biggest losers 
 Macau casinos and mainland Chinese telecoms services providers are among the day's biggest gainers
 


Retailers, financial services providers and utilities were among the biggest losers, while Macau casinos and mainland Chinese telecom services providers were among the biggest gainers. Hong Kong property developers, meanwhile, managed to close above water


Stocks

China stock market

Hong Kong Stock Exchange

Live

Overnight markets/ What futures foretell:
– Overnight in US markets, the S&P 500 lost 1.23 per cent, the Nasdaq lost 1.13 per cent and the Dow Industrials lost 1.28 per cent.
– Hong Kong futures lost 0.35 per cent, FTSE A50 is down by 0.67 per cent.IPO debuts: nothing majorEconomic statistics/Central Bank action: nothing majorCorporate events, earnings, meetings, news conferences: nothing major


Morning guidance

The Hang Seng Index was down 0.88 per cent to 25,862.19 as it opened trading on Wednesday. Index heavyweights were down too - Swire Pacific (19 HK) was down 2.3 per cent to HK$71.3, Bank of China (Hong Kong) (2388 HK) was down 2.1 per cent to HK$26.1 and Galaxy Entertainment (27 HK) was down 2 per cent to HK$47.8.
– Xie Yu


Hang Seng Index, heavyweight stocks open lower

US investors currently hold about US$785 billion in Chinese equities across the Hong Kong, A share and American Depository Receipts (ADR) markets, Goldman Sachs said on Wednesday in a report aimed at gauging the impact of an exit from exposure to China-related assets.
On aggregate, the investment bank estimated, US investors’ exposure to Chinese equities was equivalent to 7 per cent of the market cap of Chinese listed companies, which currently stands at about US$11 trillion.
Specifically, they calculated that it would take 195 days for US investors to liquidate their stakes in the whole ADR universe, assuming that they represent a third of the three-month based average daily turnover.
– Xie Yu


US investors will take 195 days to unwind positions in Chinese stocks: Goldman

Mainland China-based commercial banks were broadly trading lower on Wednesday morning. Bank of China (Hong Kong) (2388 HK) lost 1.3 per cent to HK$26.3, China Construction Bank (939 HK) was down by 1.2 per cent to HK$5.9, Industrial and Commercial Bank of China (1398 HK) eased 1 per cent to HK$5.2, and Agriculture Bank of China (1288 HK) was down by 0.3 per cent to HK$3.1. The declines come a day after buildings and banks linked with the mainland were targets by protesters on Tuesday. These were spray painted with anti-Beijing slogans, while a Bank of China branch in Tin Hau was attacked with a petrol bomb.
– Xie Yu


Mainland banks trade lower in step with broader Hong Kong market 

Index heavyweights continue to lose ground, dragging the Hang Seng Index to 0.9 per cent lower at 25,863. WH Group (288 HK) shed 2.1 per cent to HK$6.9, Hong Kong Exchanges and Clearing (388 HK) lost 1.7 per cent to HK$226.2 and Tencent Holdings lost 1.6 per cent to HK$325 on Wednesday morning. BOC (HK) retreated further, by 1.9 per cent, to HK$26.1.
– Xie Yu


Index heavyweights continue to lose ground in Hong Kong

Meanwhile, Ray Dalio, the billionaire founder and co-chairman of Bridgewater Associates, the world’s biggest hedge fund, says preliminary discussions on limiting US investments in China make him wonder if the Trump administration is “inching toward bigger moves”.
Read the full story here.


Ray Dalio on Trump's plans to limit US capital flows to China

“It seems the current market has not fully priced in risks that could stem from the Hong Kong protests,” said Kakei Lam, investment strategy director at Grand View Assets Management. 
He said investors should avoid companies directly involved in the protests, such as property developers and operators. He recommended businesses related to everyday necessities, such as Mengniu Dairy (2319 HK) and Tingyi (322 HK) in the food and beverage category, as well as some sports brands, as defensive stocks. 
In the medium term, Lam said, the passage of a bill linked with Hong Kong human rights in the US could lead to more political disputes, and further jeopardise the city’s status as a free-trade and international finance hub. 
He said investors should also keep an eye on the Hong Kong dollar exchange rate, as well as signs of massive capital outflows initiated by foreign investors.
– Xie Yu


Current market has not fully priced in Hong Kong protest risks

Budweiser Brewing Company APAC (1876 HK) rose 4.4 per cent to HK$29.5 on Wednesday, rising by a total of 9.3 per cent from its IPO price of HK$27. Kakei Lam, investment strategy director at Grand View Assets Management, said the company’s business in mainland China offered a good hedge against the current situation in Hong Kong. He said investors could pay more attention to other upcoming initial public offerings by businesses heavily focused on the mainland.
– Xie Yu


Budweiser rises again, suggests mainland-focused firms a good hedge against protests

The Hong Kong market clawed its way back up marginally in late morning trading. The Hang Seng Index closed 0.27 per cent lower at 26,022.33 at the lunch break. Utilities and financial services heavyweights dragged on the gauge. MTR (66 HK) lost 1.3 per cent to HK$43.5, CLP Holdings (2 HK) lost 1.7 per cent to HK$80.95, Hang Seng Bank (11 HK) eased 1.3 per cent to HK$166.8, and Hong Kong Exchanges and Clearing dropped 1.2 per cent to HK$227.2.
– Xie Yu


Hong Kong market marginally lower at lunch

Macau casinos are trending higher. MGM China (2282 HK) was up by 2.3 per cent to HK$12.5, Galaxy Entertainment (27 HK) was up by 0.8 per cent to HK$49.15, and Paradise Entertainment (1180 HK) was up by 4.5 per cent to 92 HK cents. The uptrend comes despite data from Macau’s Gaming Inspection and Coordination Bureau, released on Tuesday, showing casino operators generated just under 22.1 billion Macanese patacas (US$2.73 billion) in the month of September as combined revenue, a 0.6 per cent higher year on year, but 2 billion patacas lower than August.
– Xie Yu


Macau casinos rise despite monthly decline in revenue

Hong Kong property developers were trading stronger post lunch, and helped push up the Hang Seng Index, which has erased most of its losses from the morning. New World Development (17 HK) was up by 2 per cent at HK$10.4, Henderson Land (12 HK) was up by 1.9 per cent at HK$37.2, and Wharf Real Estate Investment Company (1997 HK) was up by 1.6 per cent at HK$43.5. The Hang Seng was still 0.06 per cent lower at 26,075.95.
– Xie Yu


Hang Seng almost flat post lunch as property firms trade higher

Budweiser Brewing Company APAC (1876 HK) has shot up, and is now 5.3 per cent higher at HK$29.7. Meanwhile, the Hang Seng has see-sawed to 26,040.33, a decline of 0.2 per cent. 
– Xie Yu


Budweiser rises by more than 5 per cent in afternoon trading

Lenovo Group (992 HK) was trading 2.9 per cent higher at HK$5.38, a ten-day high, in the afternoon in Hong Kong. Telecoms firms were also trending higher – China Telecom (728 HK) was up by 1.7 per cent at HK$3.6, China Unicom (762 HK) was up by 1.8 per cent at HK$8.5 and China Mobile (941HK) was up by 0.77 per cent at HK$65.4. The telecom services providers have started accepting applications for 5G services from customers, the Beijing Youth Daily reported on Tuesday.
– Xie Yu


Lenovo, telecoms trend higher in afternoon trading


Watch and jewellery stocks seem to have lost their lustre amid the protests in Hong Kong. Chow Tai Fook (1929 HK), the world’s largest jewellery retailer, was down by 1.2 per cent at HK$6.4, Earnest Borel Holdings (1856 HK) was down by 4.2 per cent at HK$1.58, and Oriental Watch (398 HK) was down by 0.6 per cent to HK$1.5 in late afternoon trading.
– Xie Yu


Watch and jewellery stocks lose their shine

The Hang Seng Index closed 0.2 per cent lower at 26,042.7, weighed down by heavyweights such as Tencent, CLP Holdings and MTR. Retailers, financial service providers and utilities were among the biggest losers, while Macau casinos and mainland Chinese telecoms service providers were among the biggest gainers. Hong Kong property developers, meanwhile, managed to close above water.
– Xie Yu


Hang Seng closes 0.2 per cent lower