Market colour: HSI, HSTECH surrender early gains to head lower after China hits back with US shipping curbs
🔻After rebounding more than 1% this morning, the Hang Seng Index (HSI) and Hang Seng Tech Index (HSTECH) are trading 1.4% and 3.3% in the red as of 217PM
❌China's levy of 400 Chinese yuan (US$56) per net ton on US ships that call at Chinese ports came into effect today, with fees set to increase each year, reaching 1,120 yuan by April 2028
🥊The move is a retaliation for the US' plan to charge port fees on Chinese-built, operated, or owned ships, also starting today
This afternoon, Bloomberg reported that China's Ministry of Commerce announced limits on five American entities of Hanwha Ocean, one of South Korea’s biggest shipbuilders.
👮♀️China's Ministry of Transport is also conducting a probe into the impacts from the US Trade Representative’s Section 301 investigation into China’s maritime sector, and may implement retaliatory measures in due time
📛According to Bloomberg, this ongoing dispute has consequences for global economy, as vessels are involved in 80% of worldwide trade
✴✳Following a further drop in the HSI and HSTECH today, the trending put warrants $HSI 24200MBePW251127(9FCW.SI)$ (https://warrants.com.sg/tools/livematrix/9FCW) and $HSTECH 5400MBePW251230(NQKW.SI)$ (https://warrants.com.sg/tools/livematrix/NQKW) are up 19% and 25.6% respectively, while the trending call warrants of $HSI 28600MBeCW251127(IZYW.SI)$ (https://warrants.com.sg/tools/livematrix/IZYW) and $HSTECH 6400MBeCW251230(WKDW.SI)$ (https://warrants.com.sg/tools/livematrix/WKDW) are 26% and 24.1% lower
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