The friction between China and G7 does not fit Hang Seng

The Hang Seng, Hong Kong Stock Exchange benchmark index, closed today with losses of 0.71% after the latest friction between China and Western countries represented in the recent G7 and NATO summits.

The selective lost 203.6 points to 28,638.53. At the same time, the Hang Seng China Enterprises, the index that measures the behavior of mainland Chinese companies listed on the Hong Kong stock market, fell by 0.76%.

All sub-indices closed in the negative territory. The Commerce and Industry sector dropped by 0.3%), the Services yielded 0.6%. Meanwhile, the Finance sector lost 1.18%, and the Real Estate sector depreciated by 1.21%.

In Real Estate, Country Garden tumbled by 2.92%. In Finance, the state-owned Bank of China plummeted by 1.77%, and its local subsidiary, BOC Hong Kong, yielded 1.81%. 

Among digital trading companies, Meituan dropped by 1.56%. In contrast, Alibaba advanced by 0.58%, and Tencent profited 0.67%.

The session has been extraordinary for car manufacturers. Geely added 4.76%, and BYD hiked by 4.66%.

The trading day has been less exciting for the state-owned companies. The oil firm Cnooc contracted by 2.41%, and China Mobile, the telephone operator, shrank by 1.23%.

The business volume of the session was 143,690 million Hong Kong dollars.

Unprecedented criticism confronting China at NATO and G7 meetings 

China was the subject of confrontation and unprecedented criticism at the NATO and G7 meetings. 

The North Atlantic Treaty Organisation stated that the country posed systemic challenges for the transatlantic security alliance. For the first time, NATO made a move to stand up to China’s military ambitions. Besides, the leaders of the organization expressed worries about deepening military ties with Russia.

It was a diplomatic victory of US president Joe Biden. He had urged the thirty-member strong alliance to confront China’s rapidly expanding military, political and economic force.