Night futures follow Hang Seng lower

Night futures of Hong Kong stocks fell further last night, following the Hang Seng Index which has been falling for five consecutive trading days.

Joyce Chen and Jeannie Tang

Wednesday, September 12, 2018

Night futures of Hong Kong stocks fell further last night, following the Hang Seng Index which has been falling for five consecutive trading days.

The HSI closed at 26,422.55, 190.87 points or 0.72 percent less than the previous trading day while the SSE Composite Index in Shanghai ended at 2,664, the lowest in 31 months.

Both of new economy and gaming sectors were red in the city.

China Literature (0772) dropped 2.55 percent to HK$44.00, and Yixin (2858) dipped 3.90 percent to HK$2.22, a record low. Index heavyweight Galaxy Entertainment (0027) plunged 5.69 percent to HK$48.10 while Sands China (1928) ended at HK$32.35, down 3.72 percent from Monday.

The share price of Xiabuxiabu Catering Management China Holdings (0520) slumped 6.32 percent, losing HK$1.5 billion in market capitalization in Hong Kong amid authorities conducting food safety checks at one of Xiabuxiabu's restaurants in the mainland.

On the other hand, Ping An Healthcare and Technology (1833) surged 2.68 percent to HK$44 after its inclusion in stock connects.

Steven Yang Ling-xiu, Chief Strategist (A/H) of CLSA, said the downside risk of Hong Kong shares has not been eliminated due to the China-US trade war, while A-stocks is more worthy of investing.

He predicted that the trade war will reduce China's exports by 5 percent and affect the profit of listed companies by 4 percent to 6 percent.

Elinor Leung, CLSA's head of telecom and research, said the mainland gaming industry will face stronger supervision, while the government has no intention to slow down the industry as it can be a soft power strategy.

CLSA's head of China financial research Patricia Cheng believed that the bad loans ratio in China will improve, adding that the slowdown of economic growth in China result in fluctuating capital liquidity, bringing more uncertainty.