[ET Net News Agency, 22 September 2017] HK stocks closed sharply lower on Friday after
credit rating agency S&P downgraded both the ratings of China and Hong Kong. The Dow also
snapped its 8-day winning streak overnight. The Hang Seng Index opened down 160 points to
27,949. It then fell as much as 264 points to an intra-day low of 27,845.
The Hang Seng Index ended down 229 points or 0.8% to 27,880. The H-share index fell 89
points or 0.8% to 11,109. Turnover decreased to HK$92.6 billion from HK$108.5 billion on
Thursday.
The northbound quota balance of the "Shanghai-HK Connect" program was RMB13.44 billion,
surpassing the daily allowed quota of RMB13 billion. It indicated net outflow of RMB340
million. The southbound quota balance was RMB93.35 billion, accounting for 89% of the
daily allowed quota of RMB10.5 billion.
As for the Shenzhen-HK Connect, the northbound quota balance was RMB11.95 billion,
accounting for 91.9% of the daily allowed quota of RMB13 billion. The southbound quota
balance was RMB9.696 billion, accounting for 92.3% of the daily allowed quota of RMB10.5
billion.
WH Group (00288) and New World Development (00017) were the two blue chips that
registered gains. WH Group added 1% to HK$8.05. New World put on 1.6% to HK$11.22.
Chinese developers saw profit-taking selling. China Resources Land (01109) dipped 3.9%
to HK$25.65. China Overseas Land & Investment (00688) fell 2.3% to HK$27.3. China Vanke
(02202) slipped 3.6% to HK$26.95. Sunac China (01918) slid 3.4% to HK$34.6. China
Evergrande (03333) declined 3% to HK$29.5.
Automakers also saw selling pressure, with BYD (01211) falling 1.5% to HK$70.6. Geely
Automobile (00175) and Brilliance China Automotive (01114) were down 3.5% and 5% to
HK$23.35 and HK$22.6.
Share price of Apple weakened as investors worry about the sales of new iPhone models.
The iPhone components supply chain fell across the board. AAC Technologies (02018) fell
2.8% to HK$136.6. Sunny Optical Technology (02383) sank 1.7% to HK$131.3. (KL)