Hang Seng ends with tiny loss as normalcy returns to Hong Kong after huge protests

The Hang Seng Index closed slightly down while China shares eked out a tiny gain, as traders battled nerves over trade uncertainty while feeling excited about the official launch of a Nasdaq-style board on the mainland and a return of normalcy in Hong Kong after large protests.

The Hang Seng fell 0.05 per cent to 27,294.71, crawling out of a morning hole in which lows were as deep as 1.6 per cent. In addition to trade, investors were focused on ongoing tension over a controversial proposal that would allow extraditions to the mainland. Huge protests roiled the city on Sunday and Wednesday.

Meanwhile, Brent crude prices jumped by as much as 4.5 per cent after two tankers were damaged in a suspected attack in the Gulf of Oman. The two tankers, the Marshal Islands-flagged Front Altair and the Panama-flagged Kokuka Courageous, have been evacuated and the crews were safe, shipping sources said.

“The market is still impacted by the uncertainty both in Hong Kong as well as the trade war between China and the US,” said executive director of Phillip Capital Management (Hong Kong) Louis Wong, referring to the street protests on Sunday and Wednesday against the extradition bill.

The Shanghai Composite Index closed up 0.05 per cent at 2,910.74, as gains in brokerages on the start of the new technology board in Shanghai countered worries about US-China trade relations. Trading could start within two months, with some of the stocks available eventually to northbound traders on the Hong Kong-Shanghai Stock Connect.

A gauge of the mainland-traded brokerages added 0.7 per cent on expectation the start of the new technology board will boost revenues from broking and investment bank businesses. Among them, Tianfeng Securities rose 4 per cent to 10 yuan and China Galaxy Securities climbed 3.4 per cent to 11.09 yuan.