Hong Kong stocks fall as US-China trade tensions flare up again
Investors pare bets after Trump says China violated tariffs deal; Beijing says it will take strong measures to safeguard its legitimate rights
The Hang Seng Index closed 0.6 per cent lower at 23,157.97 after slumping as much as 2.7 per cent. The Hang Seng Tech Index slipped 0.7 per cent. Mainland markets were closed for the Dragon Boat Festival holiday and will resume trading on Tuesday.
Electric carmaker Li Auto tumbled 2 per cent to HK$110, while peer BYD lost 1.9 per cent to HK$385.40. Short-video platform Kuaishou Technology dropped 1.6 per cent to HK$52.45, while sportswear manufacturer Anta Sports Products weakened 1.3 per cent to HK$94.25.
Casino operators Sands China added 4.3 per cent to HK$16.08, while peer Galaxy Entertainment Group rose 1.8 per cent to HK$34 after gaming revenue in Macau rose 5 per cent year on year in May to the highest level since January 2020.
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How are Chinese citizens feeling the effects of the US-China tariff war?
Investors reassessed their optimistic bets after US President Donald Trump on Friday said China had violated a big part of the trade tariff agreement, without providing details. The Trump administration’s wide-ranging crackdown on China, including export controls on chips for artificial intelligence and plans to revoke visas for Chinese students, also weighed on sentiment.