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South China morning post
Hong Kong stocks end the week lower after SMIC and CNOOC crash following US blacklist.
Hong Kong shares ended the week lower after the Trump administration added four more Chinese companies, including SMIC and CNOOC, to a blacklist on Thursday. China stocks, on the other hand, were in a “soft bull cycle” and posted a third week of gains. The Hang Seng Index rose 0.4 percent to 26,835.92 on Friday, but fell 0.2 percent for the entire week. The Shanghai Composite Index rose 0.07 percent to 3,444.58, gaining 1.1 percent for the entire week. The indicator has risen for three weeks in a row. On Thursday, the US Department of Defense designated four more Chinese companies as owned or controlled by the country’s military, bringing the total number of blacklisted companies to 35. A recent executive order by President Donald Trump will prevent US investors to buy securities of these companies beginning late next year. In a rare public warning, US Director of National Intelligence John Ratcliffe said overnight that China posed the biggest threat to the US Get the latest insights and analysis from our Global Impact newsletter on the great stories that originate in China. Blacklists will be limited, said Alan Li, a portfolio manager at Atta Capital in Hong Kong. “Market sentiment is still trending positive … although the names of the four companies were confirmed on Thursday, the news had already been absorbed by the market this week,” he said. The SMIC lost 5.4 percent to HK $ 21 after it resumed operations. Friday afternoon. CNOOC led the declines among top stocks in the Hang Seng Index with a 3.9 percent drop to HK $ 7.40. Trading in SMIC’s shares was suspended in the morning. In the afternoon, the semiconductor maker refuted Washington’s claim that it was a military company in a trade show. “The company’s products and services are all for civil and commercial end uses, and are not involved in any military application,” he said, adding that he “strongly” opposed the US decision, which reflected a “fundamental misunderstanding. “On End-use US investors will now be unable to buy their shares for 60 days starting Friday, and they will no longer be able to trade the securities after 365 days, the company said. CNOOC, meanwhile, said it was assessing the impact of the situation and would closely monitor developments. Investors were weighing the ongoing tensions between the United States and China against recent developments on the Covid-19 vaccine front. Vaccine transportation and distribution could be a cause for concern: Pfizer was facing a supply chain bottleneck and last month slashed an initial plan to roll out 100 million vaccines in half, The Wall Street reported. Journal. for a global global economic recovery, said Li Daxiao, chief economist at Yingda Securities. “A shares are in a mild bullish cycle since the July rally. The drop on Thursday and Wednesday was more of a readjustment after big gains, ”he said. The Hang Seng index will fluctuate between 26,500 and 27,000 in the next week or two, Li said. “In the next semester, people will tend to increase their bets on the stocks that will recover after the pandemic,” he added. On Friday, consumer stocks led gains among top stocks in Hong Kong. Mengniu Dairy was up 6 percent. Alibaba Group Holding, which owns this newspaper, was up 2.6 percent and property developers were among the biggest losers. The development of the new world declined by 2.6 percent, while shares of Next Digital, which publishes the Apple Daily newspaper, rose by 20 percent to 0.28 Hong Kong dollars on Friday. The increase came after founder Jimmy Lai Chee-ying and two other top executives were charged with fraud on Wednesday. On the mainland, spirits and beer stocks led the gains. The Chongqing Brewery increased to the 10 percent daily limit. Kweichow Moutai, the world’s most valuable liquor stock, added 2.5 percent to 1,793.11 yuan. Financial stocks hit some of the gains after Chinese regulators issued guidance for major banks. The guide will help these banks reduce systemic risk, improve internal controls and prevent bankruptcy risk. While Xiamen Bank slumped 10%, Postal Savings Bank of China fell 2.3% in Shanghai and 1.1% in Hong Kong. More from South China Morning Post: * Hong Kong Markets Gain, As UK Vaccine Approval, China’s Positive Services Sector Data Fuel Hopes for Covid-19 Recovery * Trump Administration Add China’s SMIC and CNOOC to blacklist our mobile app. Copyright 2020.
