Hong Kong Property, Casino Stocks Slump After Violent Protests
Hong Kong Property, Casino Stocks Slump After Violent Protests
(Bloomberg) -- Hong Kong shares fell after weekend street clashes caused major disruptions to the international airport and transport networks.
Sino Land Co. and Sun Hung Kai Properties Ltd. both slid more than 2.7%, among leading decliners on the MSCI Hong Kong Index, which fell 1.6%. Subway operator MTR Corp. dropped 3.1% after protesters damaged a number of train stations and disrupted services. Sands China Ltd., Wynn Macau Ltd. and MGM China Holdings Ltd. fell more than 2% after data showed Macau casino revenue dropped in August.
“Protests have become more violent and tense, heightening uncertainty over how all this will end,” said Philip Tse, associate director at Bocom International Co. “The impression among mainland Chinese that Hong Kong is not a pleasant place to travel, or even work or go to school, could be more lasting and that will deal a substantial blow to the local economy.”
It was the 13th straight weekend of political unrest in the Asian financial center, with rallies over a now-suspended bill to allow extraditions to China having widened into a push for democracy. The violence came after police denied permission for a mass rally Saturday and arrested several prominent pro-democracy activists, warning others could also be detained for taking part in unauthorized assemblies.
Real estate developers and casino stocks were among the worst performers on the Hang Seng Index, which closed 0.4% lower. An index of property companies fell 1.5% and is down 17% since early July. The Hong Kong dollar was little changed at 7.8419 per greenback.
Shares on the mainland offered a contrast, with the Shanghai Composite Index climbing 1.3% and the ChiNext gauge adding 2.6%, as traders shrugged off the Trump administration’s heaping of further tariffs and China’s retaliation in the latest trade war escalation.
"The widening gap between H and A shares is a result of worsened investment sentiment in Hong Kong," said Daniel So, strategist at CMB International, adding that mainland stocks were being driven higher by expectations that Beijing could announce further support for domestic consumption. "Hong Kong’s market is more sensitive to global markets."
To contact Bloomberg News staff for this story: April Ma in Beijing at ama112@bloomberg.net;Jeanny Yu in Hong Kong at jyu107@bloomberg.net
To contact the editors responsible for this story: Sofia Horta e Costa at shortaecosta@bloomberg.net, David Watkins, Richard Frost
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With assistance from Bloomberg