China, HK stocks drop as Sino-U.S. trade tensions escalate

Shenzhou International group

29/11/2019 05:02

* SSEC -0.6%, CSI300 -1.0%, HSI -2.0%
    * HK->Shanghai Connect daily quota used -1%, Shanghai->HK
daily
quota used 2.4%
    * FTSE China A50 -1.3%

    SHANGHAI, Nov 29 (Reuters) - Hong Kong's benchmark index
dropped 2% on Friday on concerns how an overdue truce might be
agreed between Washington and Beijing amid fresh trade-war
headlines. 
    ** The Hang Seng index  .HSI  was down 2% at 26,363.78
points, while the Hong Kong China Enterprises Index  .HSCE  lost
2.4% to 10,309.46. 
    ** Sino-U.S. tensions flared after the U.S. government's
decision to sign a bill backing anti-government protesters in
Hong Kong.  
    ** China warned the United States on Thursday that it would
take "firm counter measures" in response to U.S. legislation
backing anti-government protesters in Hong Kong, and said
attempts to interfere in the Chinese-ruled city were doomed to
fail.  urn:newsml:reuters.com:*:nL4N2880S4 
    ** "The main concern is still the trade deal," said Alex
Wong, a director at Ample Finance Group in Hong Kong. 
    ** "We are in thin trading, so as we break out on the
downside some people will chase (the sell-off)," he added. 
    ** Market participants were also worried about signs of more
economic damage as the island city geared up for weekend
protests.   
    ** Hong Kong braced for a fresh wave of protests over the
weekend as police on Friday withdrew from a university campus,
which was the site of some of the worst clashes between
protesters and security forces in nearly six months of unrest.
 urn:newsml:reuters.com:*:nL4N2890DZ 
    ** Hong Kong private home prices slipped for a fifth
consecutive month in October as the Asian financial hub grapples
with its biggest political crisis in decades, although the pace
of decline slowed.  urn:newsml:reuters.com:*:nL4N2862IP 
    ** "Looking at the social and market situation, the price
index will continue to decline in November and December," said
Thomas Lam, executive director of property consultancy Knight
Frank.
    ** Luxury brands are likely to retreat from Hong Kong as the
city is wracked by protests at a time when wealthy Chinese
shoppers are staying on the mainland, consultancy Bain said on
Thursday, highlighting a shift that is reshaping the global
industry.  urn:newsml:reuters.com:*:nL8N2875CI 
    ** On the mainland, stocks also eased, led by a slump in the
healthcare sector after major players slashed prices in China. 
 urn:newsml:reuters.com:*:nL4N2890PU 
    ** The CSI300 index  .CSI300  fell 1% to 3,823.22 points at
the end of the morning session, while the Shanghai Composite
Index  .SSEC  lost 0.6% to 2,871.08 points.  
    ** China on Thursday reiterated its pledge to further widen
market access for foreign capital and lower non-tariff trade
barriers, as it aims to boost flagging trade amid a slowing
economy and a trade war with the United States.  urn:newsml:reuters.com:*:nL4N28838U  
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  dropped 0.99%, while Japan's Nikkei index
 .N225  was down 0.25%.
    ** The yuan  CNY=CFXS  was quoted at 7.0325 per U.S. dollar,
0.03% firmer than the previous close of 7.0348. 
    ** So far this year, the Shanghai stock index climbed
15.87%, while China's H-share index is up 4.3%. Shanghai stocks
declined 1.34% so far this month. 
    ** As of 0423 GMT, China's A-shares were trading at a
premium of 29.49% over the Hong Kong-listed H-shares.

 (Reporting by Luoyan Liu, Noah Sin and John Ruwitch, Editing by
Sherry Jacob-Phillips)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))