Hong Kong stocks fall for 3rd week amid tech cold war fears

Techtronic Industries Co

24/05/2019 09:29

* HK->Shanghai Connect daily quota used 0.5%, Shanghai->HK
daily
quota used 2.3%
    * HSI +0.3%, HSCE +0.4%, CSI300 +0.3%
    * FTSE China A50 +0.8%

    May 24 (Reuters) - Hong Kong stocks ended higher on Friday,
but lost ground for a third week in a row, as the Huawei
sanctions raised fears about Sino-U.S. trade tensions morphing
into a tech cold war.  
    ** The Hang Seng index  .HSI  rose 0.3%, to 27,353.93, while
the China Enterprises Index  .HSCE  gained 0.4%, to 10,445.54.  
    ** For the week, HSI sank 2.1%, while HSCE lost 2.3%, both
declining for the third week in a row.
    ** U.S. President Donald Trump said on Thursday that
Washington's complaints against Huawei Technologies might be
resolved within the framework of a U.S.-China trade deal, while
calling the Chinese telecom giant "very dangerous.  urn:newsml:reuters.com:*:nL4N22Z35N 
    ** The U.S. Commerce Department said on Thursday it was
proposing a new rule to impose anti-subsidy duties on products
from countries that undervalue their currencies against the
dollar, another move that could slap higher tariffs on Chinese
products.  urn:newsml:reuters.com:*:nL2N22Z1XT 
    ** China said the United States needs to correct its "wrong
actions" in order for trade talks to continue after it
blacklisted Huawei, a blow that has rippled through global
supply chains and battered technology shares.  urn:newsml:reuters.com:*:nL4N22Z2GD
 urn:newsml:reuters.com:*:nL4N2301MB  
    ** Leading losses in the market, the Hang Seng information
technology index  .HSCIIT  has lost 14.6% so far in May as the
tech cold war fears simmers. The index is set for its worst
monthly drop since October 2018. 
    ** Tech giant Tencent Holdings Ltd  0700.HK  slumped 8.5%
for the week, losing 16.1% in May so far.  
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  added 0.19%, while Japan's Nikkei index  .N225 
closed down 0.16%.
    ** The yuan  CNY=CFXS  was quoted at 6.9038 per U.S. dollar
at 08:15 GMT, 0.11% firmer than the previous close of 6.9116. 
    ** The top gainers among H-shares were China Gas Holdings
Ltd  0384.HK , up 5.1%, followed by Great Wall Motor Co Ltd
 2333.HK  that gained 3.86% and PICC Property and Casualty Co
Ltd  2328.HK , which rose 3.3%.
    ** The three biggest H-shares percentage decliners were
China Tower Corp Ltd  0788.HK , which shed 2.91%, Bank of China
Ltd  3988.HK , which fell 1.2% and China Pacific Insurance Group
Co Ltd  2601.HK , down 0.9%.
    ** At close, China's A-shares were trading at a premium of
25.67% over Hong Kong-listed H-shares.

 (Reporting by the Shanghai Newsroom; Editing by Shreejay Sinha)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))