Hong Kong shares slide as pandemic, US sanction pressures weigh
- 26 Jun 2020
Hong Kong shares ended lower on Friday, after US lawmakers moved closer to sanctioning people and companies they consider China's accomplices in curbing the city's autonomy, while new coronavirus outbreaks globally also soured the sentiment.
The Hang Seng index closed down 0.9% at 24,549.99. The Hang Seng China Enterprises index fell 0.8%.
The Hang Seng index posted a 0.4% weekly fall, as comments by U.S. President Donald Trump that the trade deal with China remains "fully intact" helped offset earlier losses during the week.
Hang Sang's sub-index tracking energy shares fell 1.4%, the IT index dipped 1.6%, financials ended 0.9% lower and the property sector lost 1%.
Financial markets in mainland China were shut for the Dragon Boat Festival, while Hong Kong markets were closed for it on Thursday, when global equities slipped on worries of further coronavirus outbreaks across the world.
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The U.S. Senate passed a legislation on Thursday that would sanction people or companies it deems in support of China's attempt to restrict Hong Kong's autonomy, pushing back against Beijing's new security law for the city.
Investors turned cautious as Chinese authorities could pass that security law during a June 28-30 meeting, amid mixed signals in global markets, CHIEF Securities said in a note.
About 1.51 billion shares were traded on the Hang Seng index, compared to the traded volume of 1.43 billion in the previous trading session.
The offshore yuan weakened less than 0.1% to 7.0870 per U.S. dollar. The Hong Kong dollar stayed close to its strengthening limit, trading at 7.7503.
Asian stocks followed Wall Street to trade higher. MSCI's Asia ex-Japan stock index was firmer by 0.3%.
Reuters.
