Market Roundup

Hong Kong stocks were dragged down on Tuesday by escalating China-US trade tensions, with all three major indices falling. The Hang Seng Index fell 448 points, or 1.73%, to 25,441 points; the China Enterprises Index fell 143 points, or 1.55%, to 9,079 points; and the Hang Seng Tech Index suffered the biggest drop, falling 222 points, or 3.62%, to 5,923 points. Market turnover reached HK$398.9 billion. Technology stocks led the decline, with Hua Hong Semiconductor (1347) plunging 13.08% and SMIC (981) falling 8.48%, impacted by concerns about the semiconductor industry and Sino-US trade frictions. Alibaba (9988) fell 4.31%, Tencent (700) fell 2.82%, and SenseTime (20) fell 7%, with tech stocks generally under pressure. Mainland banking stocks bucked the market trend, becoming a safe haven. China Merchants Bank (3968) rose 4.7% and China Construction Bank (939) rose 2.3%. Investors turned to high-yield defensive stocks.

Source: KGI Investment Products and Solutions Department

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