ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Nikkei Markets

Hong Kong shares flat amid caution over protests and trade

Stock buyback plan gives lift to phone maker Xiaomi

HONG KONG (Nikkei Markets) -- Hong Kong shares were little changed after a choppy morning session on Tuesday, as caution prevailed while investors awaited further developments on Sino-American trade relations and political unrest in the city.

The Hang Seng Index had slipped 0.1% to 25,601.70 by noon after changing direction at least six times. Chinese offshore oil producer CNOOC declined 1.7%. The company late Monday said Yang Hua, nonexecutive director and chairman of board, was resigning and Yuan Guangyu, chief executive officer, was retiring. The stock contributed about half the gauge's losses by points.

Heavyweight mainland lenders China Construction Bank and Bank of China (BOC) fell 0.7% each.

The local equity benchmark traded in a narrow 238-point range during the morning session. Trade tensions between the U.S. and China remain a drag on sentiment. Both nations imposed fresh tariffs on goods imported from each other on Sunday, but neither has formally announced a date for the next round of trade talks.

In Hong Kong, meanwhile, anti-government protests that have lasted for 13 weeks show few signs of easing. The movement, which started peacefully in June over a demand for the withdrawal of a controversial extradition bill, has turned into a wider call for greater rights and democracy.

Hong Kong Chief Executive Carrie Lam on Tuesday addressed a news conference in the city, saying she has never offered to resign. Reuters on Monday released an audio recording it obtained where Lam can be heard saying "if I have a choice, the first thing is to quit, having made a deep apology." The recording was from a meeting with businesspeople last week, according to Reuters.

"The market seems to be in wait-and-see mode, but we do not know what it is waiting for," said Castor Pang, head of research at Core Pacific Yamaichi International (H.K.). "Investors are not going to risk doing anything special these days, so we won't see big movements."

In the mainland, the Shanghai Composite Index edged lower by less than 0.1%. The yuan traded onshore declined 0.1% against the dollar to 7.1803.

Chinese smartphone maker Xiaomi climbed 5% in Hong Kong after saying its board of directors had resolved to use its share repurchase mandate to buy back shares in the open market worth up to 12 billion Hong Kong dollars ($1.53 billion). The stock was among the most actively traded on the Hong Kong Stock Exchange, with turnover of HK$934.7 million.

Lead-acid battery maker Leoch International Technology added 3.6% after saying it plans to buy property located in Shenzhen for 110.31 million yuan ($15.4 million).

Online travel services company Tongcheng-Elong Holdings slipped 1% to HK$12.54 after saying Travel Maps, a company founded by Tongcheng-Elong Co-Chairman Wu Zhixiang, disposed 3.2 million ordinary shares through a block trade at HK$12.30 apiece.

--Benny Kung

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends June 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media