Hong Kong Stocks Fall on Weak Stimulus Package from Beijing, Concerns Over Trump's Tariff Plan Weaken Investor's Sentiment

MT Newswires Live11-11

Hong Kong stocks fell on Monday on less than expected stimulus from Beijing as the high-profile authorities meeting last week failed to provide a large-scale stimulus to boost domestic demand and fight deflation.

This amid the growing concerns over Trump's plans for higher tariffs on Chinese imports has left many investors uncertain about the strength of the Chinese economy.

The Hang Seng Index fell by 1.45%, or 301.26 points, to close Monday's session at 20,426.93. The Hang Seng China Enterprises Index fell by 1.42%, or 105.87 points, to close at 7,355.57.

Economic growth in Hong Kong is seen to be at the lower end of its forecast range for the rest of the year, according to a forecast by Finance Secretary Paul Chan on his weekly blog released Sunday. Chan's forecast comes after the Hong Kong government released its growth estimate for the first three quarters at 2.6% whereas in August, the city had forecasted its economy to grow 2.5% to 3.5% for the year.

In corporate news, Yun Lee Marine Group Holdings (HKG:2682) expects a profit attributable to the owners of about HK$10.5 million for the six months ended Sept. 30, a 52.5% decrease, compared with the profit of HK$22.2 million in the corresponding period of the previous year, plummeting the company's shares by nearly 9% on Monday's close.

Grandshores Technology Group (HKG:1647) expects a loss of SG$3 million for the six months ended Sept. 30, wider than SG$1.6 million in the corresponding period last year. The shares of the company however closed nearly 9% higher on Monday.

Huarong International Financial (HKG:0993) Chairman Zhang Xing stepped down effective Friday, citing changes in work arrangements. Wang Cheng, a deputy general manager at controlling shareholder China CITIC Financial Asset Management (HKG:2799) succeeded Zhang effective the same day. Shares of the company closed over 7% lower on Monday.

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