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Xie Yu

Deb Price

Good day, traders --
Those big "olive branch" winners on Wednesday fell today. The protests aren't over, and that went back to weighing on sentiment. China stocks ended up, though, as investors expect looser monetary policy and the US and China plan to talk trade in October.
Catch up on the day's action below.
And if you have any feedback or questions, please shoot them to deb.price@scmp.com. Also, after numerous requests, we're going to try to start sending out the blog via email at the end of the day to those who would like that. If you would like to be added to the list, please shoot Deb an email. We'll see how it works.
-- Xie Yu and Deb Price in Hong Kong  


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Stocks

Stocks Blog: Hong Kong's big gainers on 'olive branch' Wednesday slide; US, China to talk trade in October

Hongkongers watch city leader Carrie Lam announce the withdrawal of the extradition bill. Photo: Robert Ng

Business

Markets

China to implement cuts in amount of cash banks must hold -- the RRR -- 'in a timely manner'
Shanghai breaks through 3,000 for first time in two months 


MTR, Cathay Pacific, retailers and property companies that posted big gains on Wednesday fell today


China stock market

Hang Seng Index

Hong Kong Stock Exchange

Tencent

Hong Kong protests

Cathay Pacific

MTR Corporation

Live

Here's what we are watching this morning:
Overnight markets/ What futures foretell
--The S&P 500 rose 1.08 per cent, the Nasdaq climbed 1.3 per cent and the Dow Jones Industrial Average rose 0.91 per cent. 
-- Hang Seng Index futures are down 0.01 per cent, to 26,474, while the FTSE China A50 is up by 1 per cent, to 13733.6.
IPO debuts: None to note
Economic statistics/Central Bank action: None to note
Corporate events:  None to note
Good reads: The immediate outlook for Macau’s casino sector looks grim, after gross gaming revenue fell 8.6 per cent in August – its biggest monthly drop since June 2016 – from US$3.3 billion in August 2018 to US$3 billion, Ryan Swift reports. Meanwhile, Asian asset managers saw their slowest growth in assets under management in seven years in 2018, but growth should remain strong in mainland China as regulatory changes make it easier for foreign firms to set up shop, Chad Bray reports.


Morning guidance 

The immediate outlook for Macau’s casino sector looks grim, after gross gaming revenue fell 8.6 per cent in August – its biggest monthly drop since June 2016 – from US$3.3 billion in August 2018 to US$3 billion, according to the Macau Gaming Inspection and Coordination Bureau.
And the forthcoming Golden Week Holiday, which starts October 1, could point to how the rest of 2019 will pan out for the sector, said Andrew Chung, an analyst covering the gaming sector for Japanese investment bank Daiwa Securities.
“If the gross gaming revenue doesn’t hold up [during Golden Week], the China slowdown might be worse than everyone thought,” Chung said, adding that Daiwa was forecasting September’s gross gaming revenue to climb 3 per cent.
“If the gross gaming revenue holds up, we could be seeing flat to low single-digit growth for the rest of the year.”
He said long-term investors in Macau gaming stocks might take comfort in the growth of infrastructure, such as the Hong Kong-Zhuhai-Macau Bridge, which opened in October last year and made Hong Kong International Airport a “local” airport for Macau. Such infrastructure brings more visitors, which closely correlates to mass-market gaming revenue.
Read full story by Ryan Swift here. 
 


Macau casinos having an unlucky streak 

Pharmaceutical bellwether Sino Biopharmaceutical (1177 HK) has received approval from China's National Medical Products Administration to sell anlotinib hydrochloride capsules it has developed as "third-line" treatment for small cell lung cancer.
This is the third disease -- after non-small cell lunch cancer and soft tissue sarcoma -- for which the drug has been approved for use in China, it said in a stock exchange filing late on Wednesday.
The firm said anlotinib's efficacy has been clinically confirmed to be able to extend patients' "progression-free survival", without giving numbers. Anlotinib's price is 50 to 60 per cent that of similar imported drugs, it added without giving numbers.
-- Eric Ng


Sino Biopharmaceutical gets green light for lung cancer treatment 

China will implement both broad and targeted cuts in the reserve requirement ratio (RRR) for banks “in a timely manner,” premier Li Keqiang said in a meeting on Wednesday, suggesting a cut in the key ratio aimed at boosting lending to spur the economy.
“At present, the external environment is becoming more complex and severe, and the downward pressure on the economy is increasing,” Li, said as he was holding a meeting under the State Council on Wednesday, according to a statement on the government website.
“(We) will use both broad and targeted RRR cuts in a timely manner as tools to guide financial institutions to guide more funds into inclusive finance, and strengthen support to the real economy,” he said.
-- Xie Yu


China to cut RRR soon to facilitate lending

JPMorgan Chase & Co. will start a phased inclusion of Chinese government debt into its benchmark emerging-market indexes.
The bank will add nine Chinese government bonds, with maturities of five to 10 years, to that index.
China’s presence in the index will increase by 1 percentage point a month over 10 months to hit a maximum 10 per cent weighting, putting it on par with Brazil.
The inclusion will begin February 28, 2020, the bank said in a statement Wednesday.
Goldman Sachs Group analysts earlier estimated that such a move could lead to about $3 billion of inflows into China’s bond market a month, the Wall Street Journal reported.
-- Xie Yu


JPMorgan Chase to start phased inclusion of Chinese government debt into indexes

The Shenzhen Stock Exchange has decided to delist missing oil tycoon Ye Jianming's CEFC Anhui International Holding (002018).
The company's listing status will be terminated as its shares have closed before face value of 1 yuan per share for 20 days in a row.
-- Xie Yu 


Missing tycoon's CEFC Anhui to be delisted in Shanghai

Here's a note from Goldman Sachs on how to read China's State Council meeting on Wednesday: 

This meeting was highly important because the language was strong and measures tangible. Most of the measures were geared toward supporting growth via fixed asset investment. The specific measures include,
1. Next year’s special purpose bond will be issued ahead of the schedule, which effectively means the annual quota will be raised.
2. Broad based and targeted RRR cuts should be used.
3. Accelerate the lowering of the actual interest rate level.
This is the strongest loosening signal from any policy meeting year to date.
As a baseline forecast we still expect this round of loosening to be less aggressive than the one we saw in 1Q. Risks to the 6.1% yoy GDP forecasts we have for 3Q and 4Q (implying sequential real GDP growth of slightly below 6%) appear to be largely balanced. We continue to forecast 100bp RRR cuts and 30bp cut in MLF rate by year-end. We maintain that the next broad based RRR cut can happen at any time and it can be combined with a targeted RRR cut.


Goldman Sachs says State Council meeting sends strong loosening signal

Properties sub sector led gains among all sectors, rising by as much as 6.8%, making up a fifth of the Hang Seng's surge Wednesday.
Wharf Real Estate Investment (1997 HK) jumped by as much as 10 per cent to HK$45.45. Sun Hung Kai Properties (16 HK), the city's largest developer by market value, rose by as much as 8.3 per cent to HK$116.90, the first day of gains in five.
-- Eugene Tang 


Recap on some of the big gains on Wednesday 

Meituan Dianping (3690 HK) said in a morning filing that it has issued 5.23 million new B shares since August 23, under the employee incentive and award programme.
-- Xie Yu


Meituan Dianping says it has issue 5.23 million new B shares under new worker programme

China Tontine Wines (389 HK) has joined forces with “hotpot king” Zhang Yong’s Haidilao International Holding (6862 HK) to launch a customised sweet wine to complement the hotpot restaurant chain’s fiery Sichuan cuisine.
The product is available in an unspecified number of Haidilao restaurants, Jilin-province based Tontine said.
Zhang, a naturalised Singaporean, last month displaced Philip and Robert Ng – who own property developer Far East Organisation and Hong Kong’s Sino Land – to become the city state’s richest man, according to Forbes.
“‘Haidilao semi-sparkling mountain grape wine’ is the first product the group has customised for a restaurant chain,” said Tontine’s chairman Wang Guangyuan.
Read full story by Eric Ng here. 
 


China Tontine Wines and Haidilao cook up a customised sweet wine for Sichuan cuisine

The Shenzhen Stock Exchange is preparing to introduce a registration-based system for initial public offering reviews on its tech heavy ChiNext board, Securities Times reported.
-- Xie Yu


Shenzhen Stock Exchange preparing its registration-based system for IPO reviews on ChiNext

The Hang Seng Index opened lower by 0.04 per cent lower to 26,512.9.
MTR (66 HK) is now trading down by 0.5 per cent to HK$47.1. Wharf Real Estate (1997 HK) is down 3.5 per cent to HK$44.7. Cathay Pacific (293 HK) is down by 0.9 per cent to HK$10.6.
-- Xie Yu


Hang Seng opens slightly lower, with Wednesday big gainers sliding

China shares are trading higher.
The Shanghai Composite Index is 0.8 per cent higher at 2,982.7. The Shenzhen Component Index is up by 0.9 per cent to 9,786.4. The ChiNext index is 1.2 per cent higher at 1,689.2.
-- Xie Yu


Mainland shares open with gains 

China and US will hold the 13th round of trade negotiations in Washington in October, the People's Daily said.
Chinese vice premier Liu He had a call with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin this morning, the report said.
Preparation of negotiations will start by both sides from mid September, it said.
-- Xie Yu


China, US agree to trade talks in October

The top trade negotiators of China and the United States will have a face-to-face meeting in early October to push forward talks to resolve their tariff war.
Chinese Vice-Premier Liu He and the United States’ Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin had a phone conversation on Thursday, their first since their last phone call on August 13, state-run CCTV reported.
The report said both sides agreed to make concrete efforts to create positive conditions to continue dialogue.
The two sides will meet in Washington in early October.
After their previous phone call, US President Donald Trump had said the two sides would meet in September. Since then, both sides have increased tariffs on each other’s imports, and China has said it would not make concessions because of US pressure.
Read full story by Teddy Ng here. 


More on the trade talks development ...

Leading retailers are sliding, after running up big gains on Wednesday.
Sa Sa International (178 HK) is down by 5.8 per cent to HK$1.8. Chow Tai Fook (1929 HK) eased by 2.5 per cent to HK$7. Chow Sang Sang (116 HK) is down by 0.9 per cent to HK$8.9.
-- Xie Yu


Retailers that took off on 'olive branch' Wednesday sliding 

Insurance companies, securities companies and banks are leading the gain of A shares, bolstered by the news of imminent RRR cut indicated by the state council meeting on Wednesday night.
CSC Financial (601066 CH) surged by 9.4 per cent to 22.8 yuan in Shanghai. Anxin Trust (600816 CH) surged by 8.5 per cent to 5.2 yuan. Bank of Xi'an (600928 CH)  hit the daily up limit of 10 per cent to 8.1 yuan.
-- Xie Yu


Insurers soar in China on RRR cut signal 

The Shanghai Composite Index broke the psychological level of 3,000 and is now at 3,001.
The last time it broke the 3,000 level was on July 5, but fell back below on the next trading day.
 

-- Xie Yu


Shanghai Composite breaks through 3,000 for first time in two months

State banks see Hong Kong listed shares resonate with A shares, rising on the State Council signal of a cut in the required amount of cash banks must hold.
China Construction Bank (939 HK) is 2.2 per cent higher at HK$6. ICBC (1398 HK) is 1.6 per cent higher at HK$5.2. Bank of China (3988 HK) is 1.3 per cent higher at HK$3.1. Agriculture Bank of China 1288 (HK)  is 1.3 per cent higher at HK$3.1.
The research departments from Minsheng Bank and Citic Securities expect the broad reserve requirement ratio (RRR) cut to kick off this month.
-- Xie Yu


Hong Kong-listed China bank shares climb on cash reserve cut signal

ChiNext Index breaks through the 1,700 level to 1,704, up by 1.8 per cent.
It marks a four-month high.
Investment sentiment is up today because of signals from the State Council that it will loosen monetary policy through a cut in the amount banks must hold in reserve overnight.
 

<![CDATA[// ><!]]>

-- Yu Xie

ChiNext Index breaks 1,700 for first time in four months

Chart: How Wednesday's big gainers are doing in early trading 

This just out from the Hong Kong Exchanges and Clearing, the operator of the local stock exchange, about a snag in the derivatives trading system:
 
"We are aware of some connectivity issues with our derivatives trading system, the Hong Kong Futures Automatic Trading System. We are looking into the matter and will provide updates in due course. The derivatives market remains open, and all other markets remain fully operational." 
 
-- Enoch Yiu


Hong Kong stock exchange operator looking into snag in derivatives trading system

The Shanghai Composite Index closed by lunch break 1.56 per cent higher at 3,015.6, staying above the psychologically important 3,000 level.
The Shenzhen Component Index gained 1.6 per cent to 9,854.5.
The ChiNext Index added 1.7 per cent to 1,698.1. It eased slighted after briefly touching an intra-day high at 1,704.1.
-- Xie Yu


Shanghai ends morning above 3,000 level 

Asked if she is paving way for invoking the Emergency Regulations Ordinance, chief executive Carrie Lam says the only goal of her announcement on Wednesday was to pave the way for public dialogue.
The Emergency Regulations Ordinance would give the chief executive the authority to “make any regulations whatsoever which he [or she] may consider desirable in the public interest” if she considered it an occasion of “emergency or public danger”.
Check out the SCMP live blog on her meeting with reporters here. 


SCMP live: Carrie Lam takes questions from press on her bombshell olive branch

The Hang Seng Index added 0.38 per cent to close at 26.624.3 at the lunch break.
Some stocks of note: Sa Sa International (178 HK) is down 6.3 per cent at HK$1.78. Chow Tai Fook (1929 HK) slipped 0.6 per cent to HK$7.17. MTR (66 HK) fell 1.5 per cent to HHK$46.65. Wharf Real Estate (1997 HK) fell 2.8 per cent to HK45. And Cathay Pacific (293 HK) is down about 3 per cent at HK$10.38.
These stocks shot up on "olive branch Wednesday".
-- Xie Yu and Deb Price
 


Hang Seng posts gains in morning session, but 'olive branch Wednesday' gainers are down 

The Hang Seng Index is up by 0.3 per cent to 26,603.3 after the lunch break.
The Shanghai Composite Index up by 1.6 per cent to 3,005 after the lunch break.
The Shenzhen Component Index is 1.7 per cent up to 9,864.6.
The ChiNext Index is 1.8 per cent up to 1,699.82.
-- Xie Yu


Mainland, Hong Kong stocks up

HSBC has reinstated coverage of China snack-maker Want Want China (151 HK) with a buy rating and price target of HK$7.16. 
So far this year, the maker of rice crackers, snacks and beverages is up nearly 16 per cent.  
Of analysts tracked by Bloomberg, 13 call it a buy, eight a hold and three a sell, with a consensus price target of HK$6.73.
It is trading flat at HK$6.3.
-- Deb Price 
 


HSBC calls Want Want China a buy

SWS Research reinstated coverage of China beer maker Beijing Yanjing Brewery (000729 CH) with an outperform recommendation and price target of 6.60 yuan.
Analysts have lowered their expectations on the company, dropping their consensus 12-month target price for the beer maker by 9.1 per cent in the past three months, according to Bloomberg. Of analysts covering it and tracked by Bloomberg, five rate it a buy, two a hold and three a sell, with a consensus target price of 5.99 yuan.  
It is up about 8 per cent in 2019.
Today it is trading up 0.99 per cent to 6.12 yuan. 
-- Deb Price 
 


SWS rates Beijing Yanjing Brewery stock as outperform

The offshore yuan strengthened by more than 200 pips against the US dollar in 20 minutes to 7.1228 by 9.34am, ahead of the People's Daily announcement that the 13th round of trade talks between China and US will be held in Washington DC in October.
It was still strong at 7.1323 against the green back at 1.12pm, 471 pips stronger than the mid price on Thursday.
A stronger yuan is pushing up the performance of aviation stocks, due to saved cost for fuel.
China Eastern Airlines (670 HK) is 3.4 per cent higher at HK$3.95 in Hong Kong.
Its Shanghai listed shares (600115 CH) are also 3.2 per cent higher at 5.43 yuan. Air China (753 HK)  is up by 2.3 per cent to HK$7.1. Its Shanghai listed shares  (601111 CH) are up by 2.1 per cent at 8.3 yuan.
-- Xie Yu


Stronger yuan boosts China airline stocks 

The supervisor of a Hong Kong MTR station ended up in the hospital after being attacked by anti-government protesters in the early hours of this morning.
Protesters cornered the man at Po Lam station demanding to know why it had been closed on Saturday, when police and demonstrators again clashed in the city.
Police had to rescue the MTR Corporation employee, and the rail operator shut the station after officers had cleared protesters, who had again vandalised ticket machines and entry gates.
“Our company expresses anger about our worker being attacked, with station facilities being damaged. We strongly condemn all violent acts,” an MTR Corp spokesman said, adding the firm had reported the vandalism to the police.
 
MTR station supervisor hospitalised after attack by Hong Kong protestershttps://t.co/h0j56fgPsp
— Chris Lau (@hkchrislau) September 5, 2019
MTR is trading down 1.9 per cent at HK$46.45. Read full story here.


MTR supervisor taken to hospital after attack by anti-government protesters

Tech companies are trading higher on this after in Hong Kong, boosted by the news that trade talks will resume next month.
Apple supplier AAC Technologies (2018 HK) surged by 7.9 per cent to HK$37.7. Chinese telecom company ZTE (763 HK) added 4.5 per cent to HK$19.8.
-- Xie Yu


Tech companies rally in Hong Kong on news US-China trade talks to happen in October

Hang Seng Index is back to negative territory, dragged by property heavyweights. Wharf Real Estate (1997 HK) declined by 5.4 per cent by 1.55pm, to HK$43.8. Sung Hung Kai Properties (16 HK)  dropped 3.6 per cent to HK$114.2. New World Development (17 HK) is down 3.6 per cent to HK$10.2. Henderson Land Properties (12 HK) lost 3.1 per cent to HK$37.5. Hang Long Properties (101 HK) lost 3.1 per cent to HK$18.4.
-- Xie Yu


Hang Seng slides into losses

The losses of some of the stocks that surged on Wednesday have gotten worse in the afternoon.

 
 
-- Deb Price 


Chart: 'Olive branch' Wednesday gainers see further slides in afternoon 

Hong Kong Exchanges & Clearing (388 HK), the operator of Asia's third-largest capital market, said it would halt trading in the city's derivatives market and after-hours transactions, citing "connectivity issues" on the future trading system.
HKEX's shares, which are also traded on the exchange, fell by as much as 0.7 per cent amid a rising market to an intraday low of HK$246.20 before the announcement was made.
Trading in the derivatives market was halted as of 2pm. 
-- Eugene Tang


HKEX halts trading in city's derivatives market, citing 'connectivity issues'

Losses on the HKEX (388 HK) widened to 1.8 per cent. The stock exchange operator is trading at HK$243.6 now.
-- Xie Yu


HKEX losses widen to 1.8 per cent 

The ChiNext gauge of start-ups trading in Shenzhen has risen 19 per cent from a low in June, close to a 20 per cent gain that is seen by some technical traders as entering the bull market territory.
Sentiment got a lift after Premier Li Keqiang called for cuts in banks’ reserve requirement ratios to support growth and China and the US agreed to return to the negotiating table next month to resolve the trade dispute.
Small-caps are prone to react more strongly to the change of the risk appetite because of their high beta meaning they are more volatile than the broader market. The major Chinese benchmarks are still far from the bull market, with the Shanghai Composite Index up 7.8 per cent from an August low and the Shenzhen Composite 13 per cent from a nadir in June.
 

-- Zhang Shidong


ChiNext nears bull market

China A shares gave up some gains in afternoon trading.
The Shanghai Composite Index closed 0.96 per cent higher, at 2,985.9.
It touched an intra-day high at 3,015.8 in the morning.
The Shenzhen Component Index added 0.86 per cent to 9,783.5.
The ChiNext Index closed up 1.2 per cent at 1,689.1.
Brokerage companies, insurers, banks, tech and telecommunication companies were the day's biggest winners.
-- Xie Yu


China shares close up 

Publicly traded Chinese companies reported slowed earnings growth in the second quarter, as moderation in economic expansion and a flareup in the US-China trade war bit into profits.
Earnings season has wrapped up for another quarter, with all 3,000-plus companies trading on the Shanghai and Shenzhen exchanges releasing their first-half results by the end of last month. The companies posted a 6.5 per cent increase in earnings for the April-June period, compared with a 9.4 per cent growth rate for the first quarter, according to Haitong Securities.
“The slowdown in the macroeconomy had a very big impact on listed companies’ earnings in the second quarter,” said Ken Chen Hao, strategist at KGI Securities in Shanghai. “The trade war was another negative factor, as lots of companies will be indirectly impacted. It has dented external demand and that will, in turn, hurt China’s investment and consumption.”
Chinese economic growth slowed to 6.2 per cent for its weakest expansion since at least 1992 in the second quarter.
Read full story by Zhang Shidong here. 


Chinese companies report slowed earnings growth in 2nd quarter

Hong Kong Exchanges & Clearing Limited (388 HK), the operator of Asia’s third-largest capital market, suspended trading in the city’s derivatives market at 2pm local time, after reporting “connectivity issues” on its trading system.
Trading in the “derivative market has been suspended at 2pm,” an exchange spokesman said. “HKEX is aware of some connectivity issues with the Hong Kong Futures Automatic Trading System. We are looking into the matter and will provide updates in due course.”
Transactions of futures contracts shrank by 70 per cent in morning trading from the daily average, brokers said, as many traders could not input their orders on the trading system when the market opened for business at 9:30am.
The HKEX.com.hk and HKEXGroup.com websites also faced intermittent technical difficulties, the exchange spokesman said, adding that HKEX is working to resolve the issue.
HKEX is trading down 0.6 per cent at HK$246.40.
Read full story here by Enoch Yiu.


HKEX  down 0.6 per cent after suspending trading in derivatives market

Richard Li Tzar-kai, the Hong Kong telecoms tycoon and younger son of Li Ka-shing, the city’s richest man, backed the “One Country, Two Systems” principle in full-page adverts in seven newspapers on Thursday.
First among local industry captains to speak after Chief Executive Carrie Lam Cheng Yuet-ngor said on Wednesday she would formally withdraw the controversial extradition bill and set up a platform to examine the causes behind the unprecedented and sometimes violent protests the city has faced for 13 weeks now, he also called for an end to the protests and the restoration of social order.
“Citizens should stop violence, rebuild a harmonious society and restore social order with the rule of law,” Li, 52, said in the adverts, which appeared in Oriental Daily News, Sing Tao Daily, Ming Pao, Ta Kung Pao, Wen Wei Po and Hong Kong Economic Times, as well as the Hong Kong Economic Journal, which is owned by a trust he owns.
He said the “One Country, Two Systems” principle was the foundation of a prosperous and stable Hong Kong, and backed the recommendations of the Hong Kong and Macau Affairs Office of the State Council, Beijing’s top office overseeing Hong Kong policy. The HKMAO on Tuesday called for all branches of the government, including the judiciary, to help stop violence and restore order.
Read full story by Enoch Yiu and Holly Chik here. 


Tycoon Richard Li takes out newspaper ad calling for end to protests 

The Hang Seng Index closed 0.03 per cent lower to 26,515.5, as gainers on Wednesday ended today with losses.
Kevin Leung, executive director of investment strategy at Haitong International Securities, said city leader Carrie Lam has not brought much positive surprise, and the tension and problems are still there, disturbing the market.
"So it could not build a sustainable rebound... Particularly, many investors are still waiting on the sidelines for clearer signals... Meanwhile, the collapse of system of the Hong Kong bourse also affect market order," he said, referring to the stock operator suspending derivatives trading at 2pm due to a connectivity issue.
-- Xie Yu


Hang Seng Index ends slightly down as concern about protests resurfaces 

Big gainers in the surge on Wednesday closed down today. Reality that protests aren't over resurfaced.
 
 
 

-- Deb Price 


Chart: Wednesday 'olive branch' gainers tumble 

The Hang Seng will find support around the 26,000 point level in the next two weeks, but could see a big fall afterwards if no progress is made in the US-China trade talks and analysts cut their corporate earnings forecasts, says Kenny Wen, wealth management strategist at Everbright Sun Hung Kai. 
"As trade talks resume and investors expect (the People's Bank of China) will loosen monetary policy soon, sentiment improved this morning.  However,  since the government didn’t meet all of the demands requested by protesters, investors used the rally to trim down their exposure," he said.
"For the Hang Seng Index, I think the coming one to two weeks will be safe, supported by policy  expectation," he said, referring to the US Federal Reserve meeting on September 17-18.
"But for the mid term, one to three months, if there is no significant improvement in trade talks and analysts further reduce their corporate earnings forecasts, HSI may have another round of selling pressure," he said.
"Short term, 26,000 will be the initial support level. And 25,000 will be very key. If its drops below that level, we may have 10 per cent more downside risk."
The Hang Seng  closed today down 0.03 per cent at 26,515.53.
-- Deb Price 


Hang Seng will find support at 26,000 for next two weeks, predicts strategist Kenny Wen 

Tycoon Li Ka-shing’s namesake foundation has spent around HK$130 million to buy 1.83 million shares of CK Asset Holdings (1113 HK) at between HK$53.17 and HK$51.9, and 500,000 CK Hutchison (0001 HK) shares at an average HK$66.66, between August 30 and September 3.
As a result, Li’s holding in CK Asset rose to 33.93 per cent from 33.88 per cent, and for CK Hutchison to 30.11 per cent from 30.1 per cent.
It is the third batch of share buying in the market of his two listed flagships, the companies said in a statement after the stock market closed on Thursday.
He spent a total of HK$1.13 billion for 20.2 million CK Asset shares and 500,000 CK Hutchison shares over a recent three-week period, they added.
-- Eric Ng


Stocks Blog: Hong Kong's big gainers on 'olive branch' Wednesday slide; US, China to talk trade in October

China to implement cuts in amount of cash banks must hold -- the RRR -- 'in a timely manner' Shanghai breaks through 3,000 for first time in two months

China to implement cuts in amount of cash banks must hold -- the RRR -- 'in a timely manner'

Shanghai breaks through 3,000 for first time in two months