Extradition Bill Row Continues Push HSI Down

Hong Kong stocks on Thursday morning extended the previous days hefty losses fuelled by nervousness after violent protests hit the city, while investors are also keeping a cautious eye on the China-US trade row.

The Hang Seng Index fell 0.9 percent, to 27,072 by the break.

While the protests seems to have subsided for now, the previous day the market had shed 1.7 percent.

And with Beijing backing the law, observers warned the issue could have a detrimental effect on the mainland.

"Beijing's push for this extradition bill could prove costly as investors and businesses value Hong Kong's autonomy," said Oanda senior market analyst Edward Moya.

"Uncertainty with Hong Kong's autonomy will dampen business prospects and put a further strain on Chinese growth. If the US and Europe become involved it could complicate relations and future trade deals."

Across the border, the Shanghai Composite Index gained 0.94 percent to 2,912 and the Shenzhen Composite Index rose 0.4 percent, to 1,534. (AFP)

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