Hong Kong stocks declined for a third day on Wednesday on the back of renewed trade war fears, weaker China manufacturing data and the country’s reiterated determination to curb home prices at a top leadership meeting.
The Hang Seng Index fell 0.9 per cent, or 242.27 points, to 28,340.74. The Hang Seng China Enterprises Index dropped 0.5 per cent, or 51.69 points, to 10,973.04. In mainland China, the Shanghai Composite Index slid 1.8 per cent to 2,824.53.
“People are turning cautious because conflicting messages about the trade war have caused confusion,” said Stanley Chan, director of research at Emperor Securities.
“The upcoming earnings releases in the rest of this month are likely to provide some support, and the Hang Seng Index will probably swing between the range of 27,800 to 29,000 in August,” Chan said.
The Trump administration may impose a 25 per cent tariff on imported Chinese goods worth US$200 billion, up from the 10 per cent that it had put forward last month, according to a report by Reuters citing an anonymous source.
