The Hong Kong Government’s amendment of the Fugitive Offenders Ordinance has caused great controversy and caused shocks to the Hong Kong society. The bill was originally scheduled to resume its second reading in the Legislative Council yesterday. The Hong Kong stock market reversed the past few days of rising momentum. It opened lower by 186 points yesterday and then fell almost from the head. At the end, the maximum is 567 points, and the low is 27222 points. The Hang Seng Index fell 480 points or 1.7% for the day and closed at 27,308 points. The HSCEI also fell 125 points or 1.2% to close at 10,494 points. The market turned soft, with a turnover of nearly 77 billion yuan, a decrease of about 15% from the previous trading day.
The public responded to the amendments to the Fugitive Offenders Ordinance by launching strikes, strikes and strikes. A large number of people started demonstrating in the Legislative Council yesterday. The market is worried about the situation. Hong Kong stocks have been under pressure since the market opened, with a drop ranging from 200 to 400 points. After 3 pm, the police fired tear gas bombs at various locations and fired bag bombs and rubber bullets to disperse the demonstrators. The market sentiment warmed up, dragging the market further down, and the Hang Seng Index closed nearly 500 points.
Although the Chairman of the Legislative Council, Mr Leung Chun-yan, decided yesterday to cancel the original Legislative Council meeting, the Government’s position on the amendment of the Fugitive Offenders Ordinance has not changed. I believe that there will still be large-scale demonstrations in Hong Kong in the future. This will have an impact on the local economy and the financial market will be affected. As a result, Hong Kong stocks are naturally difficult to stabilize.
The Hong Kong Stock Exchange (00388), a symbol of Hong Kong’s financial market, was the big day of its 19th anniversary. It was scheduled to hold a cocktail reception in the afternoon. It has also invited senior government officials and industry representatives to attend. However, the Chief Executive, Mrs Carrie Lam and the Financial Secretary, Mr Chan Mao-po, temporarily decided not to attend the meeting. The HKEx finally decided to cancel the reception in response to traffic conditions and the safety of the guests. HKEx shares fell 2.1% to close at 259.2 yuan.
The real estate sector is under heavy pressure.
The impact of political disputes on the business community has taken the lead in the real estate sector. Gao Yin Finance (00530) won a commercial land in Kaide in the middle of last month with a total of RMB 11.1 billion, but independent non-executive director Shi Liqian asked for an emergency board meeting on Monday (10th). The directors of the board took a recent social conflict and economy. The reason for the instability may have a negative impact on the growth of the commercial real estate market in Hong Kong. It was finally decided to make a loss of 25 million yuan. In addition, Wheelock (00020) and SHKP (00016) also announced the cancellation of the new property launch conference scheduled for yesterday.
The announcement of the event and the postponement of local property developers have caused the market to pay attention to the Hong Kong economy and the property market. Local property stocks have been under pressure. Although the stock price of the protagonist Gao Yin has not risen or fallen, it closed at 2.31 yuan, but the new disc was released. The club’s Wheelock fell 2% to 53.3 yuan; the new land plunged 3.1%, making 125.1 yuan. The rent-receiving stock was even more hurt. Wharf Real Estate (01997) had a 6.1% share, and the market still fell 5.2% to 52.25 yuan. New World Development (00017) tumbled 4.7% to close at 11.64 yuan.
Huawei extended product release
Sino-US trade negotiations have met with cold front. In addition to US President Trump, Commerce Minister Ross and White House economic adviser Kudlow have successively reached an agreement on the US-China agreement during the G20 summit, and believe that the US economic growth will not Subject to trade agreements. Local companies are ready to respond, and Apple has allegedly had a backup plan. If the trade war worsens out of control, the iPhone production line can be withdrawn from China. Huawei, which has been shut down by US companies such as Microsoft and Intel, originally planned to release new laptops at the Consumer Electronics Show in Asia this week, but it is reported that it will be postponed indefinitely.
Mobile phone equipment stocks fell sharply, and the big bank Citigroup sang Shenyu Optics (02382), referring to the potential impact of the Huawei ban, cut its profit forecast for this year by 5% to 8%, and the target price is lowered by 14% to 105 yuan, dragging down Share price plummeted 6.1% to close at 69.15 yuan, the worst performing blue chip stocks; AAC Technologies (02018) fell 3.4% to 42.1 yuan; Gao Wei Electronics (01415) plunged more than 4% to 1.42 yuan; Qiu Ti Technology (01478) ) fell nearly 6% to 5.69 yuan; Fu Zhikang (02038) fell 6.3%, closing at 0.9 yuan.