HSI Falls Sharply As Protest Spook Investors

"); jQuery("#212 h3").html("

Related News Programmes

"); });

2019-06-12 HKT 09:44

Share this story

facebook

  • Mass protests over extradition bill is unnerving Hog Kong investors. Image: Shutterstock

    Mass protests over extradition bill is unnerving Hog Kong investors. Image: Shutterstock

Stocks sank in Hong Kong as the city was hit by huge protests that saw tens of thousands of people block key roads, businesses shut up shop and unions encourage members to miss work.

In scenes that revived memories of the 2014 Occupy movement, traffic was brought to a standstill and government offices blocked as crowds demonstrated against a government plan to allow extraditions to China, which was due to be debated Wednesday.

Campaigners have warned that the law would entangle people in the mainland's opaque courts and hammer Hong Kong's reputation as an international business hub. The protests led authorities to delay the reading of bill to "a later date".

The Hang Seng Index fell 1.6 percent, to 27,348, making it the worst performer in Asia on Tuesday.

"Uncertainty on local policies will confuse investors and affect the flows in and out of Hong Kong stocks," said Ronald Wan, chief executive of Partners Capital International Ltd. "Investors now need to ponder whether or not to pull out of the market given the local events and global factors including the trade war."

Banks listed on the HSI took a hit, with some announcing the closure of branches near the protest areas. HSBC shed more than 1 percent, while Standard Chartered, Hang Seng Bank and Bank of China Hong Kong were around 2 percent lower.

Among other firms, market heavyweight Tencent sank 2.2 percent, while AAC Technologies shed 4.70 percent and New World Development dived 3.93 percent.

The retreat on the HSI was exacerbated by profit-taking after a two-day rally that saw it pile on more than 3 percent, while investors are also on edge as they track developments in the China-US trade row.

Shanghai eased 0.2 percent while Tokyo went into the break 0.1 percent higher, Sydney and Singapore each added 0.2 percent, and Wellington put on 0.1 percent. (AFP)

______________________________



Last updated: 2019-06-12 HKT 12:22

RECENT NEWS

US Stocks Rise On Hopes Of Pause In Rate Increases

Wall Street stocks finished solidly higher on Thursday, reflecting better sentiment on the US economy and a consensus vi... Read more

China's Financial Risks 'controllable': Regulators

The head of the National Financial Regulatory Administration on Thursday told a high-profile forum in Shanghai that the ... Read more

Banks Cut Yuan Deposit Rates, Could Boost Consumption

China's biggest banks on Thursday said they have lowered interest rates on yuan deposits, in actions that could ease pre... Read more

Cheese And Wine Put EU, Australia Deal In Peril

Australia on Thursday threatened to walk away from a blockbuster free trade deal with the European Union unless its prod... Read more

US Stocks End Mixed As Tech Shares Are Sold Off

Gains by industrial companies lifted the Dow on Wednesday, while weakness among technology shares pushed the Nasdaq deci... Read more

Amazon 'plans Prime Video Streaming Service With Ads'

Amazon.com is planning to launch an advertising-supported tier of its Prime Video streaming service, the Wall Street Jou... Read more