Hong Kong stocks slip as US trade deals signal hurdles for China's offshore shipments
stocks fell after US trade deals with Vietnam and other trading partners showed Washington was putting hurdles to curb Chinese goods shipped from offshore factories, potentially heightening trade tensions.
The Hang Seng Index dropped 1.2 per cent to 23,936.66 at 10.23am local time on Thursday, surrendering all the gain on Wednesday. The Hang Seng Tech Index declined 1.1 per cent. On the mainland, the Shanghai Composite Index fell 0.2 per cent and the CSI 300 Index rose 0.1 per cent.
Smartphone and car maker Xiaomi retreated 1.9 per cent to HK$59 while on-demand food delivery platform Meituan slid 2.1 per cent to HK$123.40. WeChat operator Tencent lost 0.5 per cent to HK$498.80 and e-commerce leaders Alibaba Group fell 2.7 per cent to HK$106.40, and JD.com dropped 2.2 per cent to HK$125.20.
The US will impose a 20 per cent tariff on Vietnamese exports and slap a
40 per cent levy on goods deemed to be transshipped through the Southeast Asian country, US President Donald Trump said on his social media. Vietnam agreed to drop all tariffs on US imports in the deal struck before the July 9 deadline, he added.
The Trump administration's tiered approach was also evident in the agreements with Canada and Mexico, a move that could hurt US-bound Chinese goods – mainly assembly parts – produced in offshore manufacturing bases to overcome punitive tariffs on direct exports from China.
Elsewhere, Cloudbreak Pharma slumped 39 per cent to HK$6.19 on the company's trading debut.
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