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Georgina Lee

Deb Price

Hong Kong’s unresolved protests and growing concerns about its economy continued to batter property stocks, which helped push the Hang Seng Index down to its lowest level in six weeks. China stocks also started the new month with losses.
The Hang Seng Index fell 0.8 per cent to 27,565.7 points, declining for its third day this week.
The Shanghai Composite Index slid 0.8 per cent to 2908.77, weighed down by consumption and financial stocks. It was the benchmark’s second straight day of losses.
“Investors are sidelined and want more directions,” said Louis Tse, managing director of VC Asset Management.
Traders had plenty of news to digest, but overall it was not encouraging.
Hong Kong follows US Fed in cutting interest rate for the first time since 2008 as trade war weighs down on world economy
The US Federal Reserve interest rate cut on overnight Wednesday was on the small side, and came with a message from chairman Jerome Powell not to see it as “the beginning of a long series of rate cuts.”
The Hong Kong Monetary Authority responded on Thursday by also cutting its base rate by 25 basis points, to 2.5 per cent, making money cheaper for borrowers in a slowing economy that is showing the wear and tear of the year-long US-China trade war. But HSBC responded by becoming the first of the city’s commercial banks to say it will keep its prime rate steady.
Sun Hung Kai plunged 4.1 per cent to HK$121.7, CK Asset Holdings fell 3.6 per cent to HK$57.2, and CK Hutchison Holdings slipped 1.6 per cent to HK$72.50.
Stocks Blog: Hong Kong property stocks tumble as GDP data underscores weakness in city’s economy
Nearly two months of protests are hurting city’s real estate market, as new buyers held back completing their purchases and weekly transactions involving used homes fell to their lowest level this year this past Sunday. This is adding to the economic concerns as Hong Kong GDP growth in the second quarter shrank 0.3 per cent from the first quarter, worse than the expected 0.9 per cent growth.
Financials also fell, with insurer AIA down 1.5 per cent at HK$79.7, HSBC down 0.5 per cent at HK$63.05, and Industrial and Commercial Bank of China down 0.9 per cent at HK$5.25.
Chinese companies listed in Hong Kong struggled as well, still feeling the brunt of the Politburo message earlier in the week that it will not use the property sector as a form of short-term stimulus to boost the economy.
China’s Politburo for the first time decides against relaxing property curbs to stimulate slowing economy
Country Garden dropped 2.8 per cent to HK$10.38, while China Overseas Land & Investment slipped 1.3 per cent to HK$26.55.
Other news traders were digesting included that wo days of trade talks ended Wednesday with few signs of progress, although US and China negotiators plan to meet again in September.
Meanwhile, a new survey in China of consumers found they are reluctant to save, an unhelpful sentiment as the country slows amid the trade war.
Liquor distiller giant Kweichow Moutai fell 1.4 per cent to 959.3 yuan and Foshan Haitian Flavouring and Food dropped 3 per cent to 96.9 yuan.
Industrial and Commercial Bank of China slipped 0.5 per cent to 5.61 yuan, while China Merchant Bank fell 1 per cent to 36.2 yuan.
The CSI 300, which tracks blue chips on Shenzhen and Shanghai, was down 0.8 per cent to 3,803.47.
Shenzhen liquor distiller Wuliangye Yibin dropped 1.4 per cent to 119.03 yuan.
But capping the losses were poultry and pork-related stocks, with Wens Foodstuff up 3.7 per cent at 41.98 yuan, Muyuan Foods up 1 per cent at 77.39 yuan, and New Hope Liuhe up 2 per cent at 19.74 yuan. They were boosted by higher production forecasts for chicken and higher prices for pork amid the current African swine fever.
Additional reporting by Daryl Choo


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Hong Kong Monetary Authority matches US Fed rate cut
HSBC says it will not reduce its prime rate


Nearly two months of protests are hurting the city’s real estate market, as new buyers held back completing their purchases and weekly transactions involving used homes fell to their lowest level of 2019 this past Sunday.


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Property stocks hammered again in Hong Kong, as concerns about protests and its economy continue to grow

Hong Kong Monetary Authority matches US Fed rate cut HSBC says it will not reduce its prime rate

Hong Kong Monetary Authority matches US Fed rate cut

HSBC says it will not reduce its prime rate