SHANGHAI: Hong Kong shares closed lower on Tuesday, as uncertainty about the impact of the US government’s move to add more Chinese entities to an export control list weighed on sentiment.
The US Commerce Department said on Monday it had added 33 Chinese entities to its so-called ‘unverified list’, which requires US exporters to go through more procedures before shipping goods to the entities.
At the close of trade, the Hang Seng index was down 250.06 points, or 1.02%, at 24,329.49. The Hang Seng China Enterprises index fell 0.89% to 8,513.3.
The biggest loser on the Hang Seng was WuXi Biologics (Cayman) Inc, which fell more than 30% following the addition of its units in Wuxi and Shanghai to the red-flag export list. Trade in its shares was later halted.
The news of the US unverified list is having a large impact on listed companies as well as relevant industries and supply chain, said Zhang Siyi, an analyst with Nanhua Futures. “It will affect the expectations of profitability of those companies and have a bearish impact on the A-share market.”
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