Hong Kong Stocks Fall Below 20,000 Mark as Beijing's Latest Economic Stimulus Fails to Impress Investors

MT Newswires Live11-12

Hong Kong stocks fell below 20,000 benchmark today on investors' persisting disappointment over the weak stimulus package and the uncertainty about Trump's next steps regarding trade with China.

Although Beijing announced a 10 trillion yuan debt package last week to mitigate domestic government financing strains, it seems to have failed to impress investors.

The Hang Seng Index fell by 2.84%, or 580.05 points, to close Tuesday's session at 19,846.88. The Hang Seng China Enterprises Index fell by 3.11%, or 228.43 points, to close at 7,127.14.

Hong Kong saw a rise in the current diffusion index on business receipts among SMEs in the city to 42.3 in October from 41.6 in September. For November, the outlook for the current diffusion index is 47.3.

For imports and exports, the current diffusion index rose to 44.7 in October from 44.5 in September, improving business sentiment among small and medium-sized businesses in Hong Kong, according to data from the city's Census and Statistics Department released Monday.

China's balance of broad money or M2 rose 7.5% year over year to 309.7 trillion yuan while total social financing, the broad measure of the economy's credit and liquidity, rose 7.8% year over year to 403.5 trillion yuan in October, according to data by the People's Bank of China.

In corporate news, Yidu Tech's (HKG:2158) affiliate Yidu Cloud (Beijing) Technology won the bid for the Healthcare Big Data Platform project of Tianjin Binhai New District Economic and Technological Development Zone with a project amount of 21.8 million yuan. The company's shares still closed over 5% lower on Tuesday.

Glory Health Industry (HKG:2329) signed a contract with Computershare Hong Kong Investor Services on Thursday, for the latter to take over as the former's share transfer registrar. Shares of the company closed nearly 8% higher on Tuesday.

Prudential (HKG:2378, SGX:K6S) repurchased for cancellation 1,486,757 shares in London on Monday at an average price of about 6.46 pounds sterling per share. The shares of the company still closed nearly 4% lower on Tuesday.

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