Hang Seng gains, but China stocks fall on uncertainty about what is ahead on trade deal if Trump signs bill supporting protesters
- Liquor giant Kweichow Moutai falls 3 per cent in worst tumble in six weeks
- Meituan Dianping surges 6.7 per cent on third-quarter revenue that beat expectations
Hong Kong stocks rose Friday, but China shares slid, as traders grappled with uncertainty about what might happen to negotiations on a partial US-China trade deal if President Donald Trump signs legislation supporting the city’s pro-democracy protesters.
The Hang Seng Index closed up 0.5 per cent at 26,595.08, snapping the past two days of losses, with social media giant Tencent rising 1.5 per cent to HK$334.2.
The hot Hong Kong stock of the day was Kasen International Holdings, which closed with a 478 per cent gain after rebutting claims of misdeeds by US short seller Blue Orca. Trading of the Chinese furniture maker and developer was halted Thursday, after it plunged 90 per cent on the claims, wiping HK$6 billion off its market value.
On the mainland, the Shanghai Composite Index dropped below the key 2,900-point level, falling 0.6 per cent to 2,885.29. That was its lowest level in three months.
Two of the most heavily traded stocks by northbound traders on the Stock Connect took hard tumbles.
Kweichow Moutai dropped 3 per cent to 1,194 yuan – its biggest fall in more than six weeks.
Jiangsu Hengrui Medicine fell 3.9 per cent to 88.98 yuan.
“We are seeing conflicting noise in the market,” said Ken Wong, a portfolio manager specialising on China at Eastspring Investments, referring to uncertainty about the pro-democracy bill.
“For the moment, momentum traders don’t want to be in a position too long. Overall, it’s just that sentiment is not that strong,” he said.
Before markets closed on the mainland and in Hong Kong, President Xi Jinping kept uncertainty about a trade deal alive, saying in Beijing, “When necessary we will fight back, but we have been working actively to try not to have a trade war.” Beijing has warned Trump not to sign the legislation.
In Hong Kong, online ticketing-to-food-delivery giant Meituan Dianping jumped 6.7 per cent to HK$6.7 on third quarter revenue that beat expectations.
Insurer AIA rose 0.7 per cent to HK$77.2, and China Construction Bank was up 1.1 per cent at HK$6.34.
WH Group, the world’s largest pork producer, was the top percentage gainer on the Hang Seng, rising 1.9 per cent to HK$8.2.
Among other Hong Kong stocks, Chinese marble producer Artgo Holdings fell 8.2 per cent to 28 HK cents after it resumed trading following a plunge of nearly 98 per cent Thursday.
The plunge was due to global index compiler MSCI’s decision to reverse its plans to add it to the MSCI China All Shares Index. The stock had gained 3,800 per cent this year as of Wednesday’s close.
Vitasoy International tumbled 6.8 per cent to HK$27.95 after lacklustre results on Thursday.
The beverage maker saw a year-on-year drop of 9.8 per cent in its first-half net profit to HK$174.7 million in its home market Hong Kong. But overall net profit for the company, which also includes its biggest market China, rose 3 per cent to HK$533 million.
Sa Sa International Holdings took another beating after reporting Thursday that its first half year-on-year retail sales in the Hong Kong and Macau markets decreased by 19.4 per cent.
It fell 3.3 per cent to HK1.74, after dropping 3.7 per cent on Thursday.
It cited the double whammy of the US-China trade war and Hong Kong protests for beating down traffic, especially from the mainland.
