Hong Kong stocks plunge more than 3% at open

Hong Kong stocks plunge more than 3% at open

The flags of the Hong Kong Stock Exchange, China and Hong Kong.
The flags of the Hong Kong Stock Exchange, China and Hong Kong. (Photo: AFP/Anthony Wallace)

HONG KONG: Hong Kong stocks dived more than 3 per cent in the first few minutes of business on Monday (Aug 26) after US President Donald Trump ramped up his trade row with China, while the city was hit by fresh violent protests over the weekend.

The Hang Seng Index dived 3.27 per cent, or 857.33 points, to 25,322.00 at the open.

The benchmark Shanghai Composite Index sank 1.6 per cent, or 46.41 points, to 2,851.02 and the Shenzhen Composite Index, which tracks stocks on China's second exchange, shed 1.96 per cent, or 30.87 points, to 1,547.83.

Last week, Trump accused China of taking advantage of the United States on trade, intellectual property theft and "much more".

READ: US-China trade war deteriorates, as Trump lashes out at Beijing

READ: Explainer: Trump's China tariffs - paid by US importers, not by China

"We must balance this very ... unfair trading relationship," he said, adding that the existing 25 per cent tariffs on US$250 billion Chinese goods will increase to 30 per cent starting Oct 1. 

Meanwhile, the 10 per cent tariffs on US$300 billion in products, set to take effect on Sep 10, will now be 15 per cent.

"We don't need China and, frankly, would be far ... better off without them," he said.

China previously announced it will apply 5 to 10 per cent on 5,078 US items, including lobster, peanut butter and soy beans.

It will impose a 25 per cent tariff on US autos and 5 per cent on auto parts, starting Dec 15.

Source: AFP/ga

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