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The Hong Kong share market closed slight higher in sluggish trade on Wednesday, 26 June 2019, as investors exercised caution ahead of the meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping. At closing bell, the Hang Seng Index added 0.13%, or 36 points, to 28,221.98. The Hang Seng China Enterprises Index was up 0.22%, or 23.65 points, to 10,766.06. Turnover decreased to HK$64.8 billion from HK$82.4billion on Tuesday.
Market participants are cautiously looking toward developments on the U.S.-China trade front, with Presidents Donald Trump and Xi Jinping set to meet at the G-20 summit later this week. The two leaders are expected to discuss the protracted trade fight between their two countries.
China and the U.S. have already slapped tariffs on billions of dollars worth of each other's goods over the past year. In May, the two economic powerhouses hiked tariffs targeting some goods. The Trump administration has said previously that Trump is ready to raise tariffs on all Chinese imports into the U.S. if the two countries fail to arrive at a deal.
Market expectations for a meaningful breakthrough being achieved in U.S.-China trade talks are quite low, so any signs of an improvement could bode well for risk sentiment.
Property counters were weaker after Fed Chair Powell dampened hopes of a rate cut. Sun Hung Kai Properties (00016) retreated 1.7% to HK$131.4, becoming the worst performing blue chip. Hang Lung Properties (00101) descended 0.8% to HK$18.46. Sino Land (00083) softened 1.1% to HK$13.2. Henderson Land (00012) shed 1.4% to HK$42.45. New World Development (00017) declined by 1% to HK$12.18. Wharf REIC (01997) dropped 1% to HK$55.75.
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