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The China-US trade war worsened. Hong Kong market fell sharply.
The Hong Kong market opened higher on Wednesday. Hang Seng index opened up 22 points, H share index up 9 points and technology index down 21 points. Alibaba rose 2.95% to become th...
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The China-US trade war worsened. Hong Kong market fell sharply.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The Hong Kong market opened higher on Wednesday. Hang Seng index opened up 22 points, H share index up 9 points and technology index down 21 points. Alibaba rose 2.95% to become the top gainer for 49-point gain. On the contrary, Meituan lost 1.14% for 22-point loss. HK Exchanges lost 1.43% to become the top loser for 15-point loss. A shares opened down 4 points. The market fluctuated after opening. It turned from gain to loss and to gain again. Meituan lost 1.54% for 30-point loss. However, Alibaba rose 3.8% for 63-point gain to lift the market again. Technology stocks were weak. GDS lost 5.8%. Bili Bili lost 4.7%. PA Good Doctor lost 2.6%. Mainland developers and property management shares rebounded. CG Service rose 4.34%. CR Land rose 2.77%. China Overseas rose 1.2%. Fantasia rose 2.9%. China Aoyuan rose 2.55%. Colour Life rose 7.6%. GCL made placement at 2.55% discount to raise $2 billion. Share price soared 15%. Jingcheng Machinery rose 14%. NE Electric rose 11%. Cansino rose 9%. A shares closed unchanged at morning’s close. Hang Seng index closed the morning up 50 points, H share index up points, and technology index up points. Turnover was $ billion.

The market fell sharply in the afternoon. Hang Seng index lost more than 200 points. China-US relationship took a turn for the worse. The US Department of Commerce might place Chinese biotech pharmaceutical companies in the blacklist. Wuxi Biologics crashed 24%to become the top loser for 158-point loss. Meituan lost 1.95% for 38-point loss. Xiaomi lost 4% for 24-point loss. Anta Sports lost 5.4% for 14-point loss. However, Alibaba rose 2.7% for 45-point gain. HSBC rose 1.6% for 27-point gain. Power generators rose against the market. CR Power rose 6.6%. China Power rose 2.9%. Huaneng rose 6.6%. Datang Power rose 6.9%. Huadian rose 8.3%. Shipping stocks also rose. Cosco Holding rose 4.1%. OOIL rose 4.8%. Pacific Basin rose 2%. Pharmaceutical shares fell sharply. Clover Biopharm lost 20%. Remegen lost 14%. Pharmaron lost 11%. Genscript lost 12%. Technology stocks fell sharply. GDS lost 8.2%. PA Good Doctor lost 6.1%. SMIC lost 5.3%. Bili Bili lost 5.2%. A shares closed down 14 points. Hang Seng index closed down 215 points, H share index down 75 points and technology index down 89 points. Turnover was $127.7 billion.

Overnight, European markets were mixed. DAX rose 23 points and CAC rose 32 points. Yet, FTSE lost 48 points. The US Federal Reserve decided to accelerate tapering. The probability of interest rate hike next April was 90%. The news sparked a rally in US equity markets. Dow Jones rose 328 points. S & P rose 75 points. Nasdaq rose 328 points. Hong Kong ADR’s lost 90 points. Night future lost 280 points. We expect the market to fall today.  
 
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