June 13, 2018 / 8:28 AM / 12 days ago

Hong Kong stocks end lower as investors brace for Fed decision

* Hang Seng index closed 1.2 pct down

* China Enterprises index HSCE falls 1.4 percent

* HSI financial sector sub-index is 1 percent lower; property sector down 1.8 percent

June 13 (Reuters) - Hong Kong stocks ended lower on Wednesday as a slump in shares of telecommunications giant ZTE Corp unnerved market participants, while investors braced for a Federal Reserve policy decision later in the day.

** The trade frictions between the United States and China have resurfaced ahead of Friday, by when Washington is expected to release a list of about $50 billion worth of Chinese goods that will be subject to a 25 percent tariff. ** The Hang Seng index closed down 1.2 percent at 30,725.15, while the China Enterprises Index ended down 1.4 percent at 12,035.63 points. ** The sub-index of the Hang Seng tracking energy shares dipped 1.8 percent, while the IT sector dropped 0.96 percent, the financial sector was 0.97 percent lower and property sector slid 1.81 percent. ** Investors wiped about $3 billion off embattled Chinese telecommunications giant ZTE Corp’s market value as it resumed trade on Wednesday after agreeing to pay up to $1.4 billion in penalties to the U.S. government. ** The Hong Kong-listed shares of ZTE slumped 41.6 percent for the day, their steepest single-session drop since its debut in 2004, following a two-month trading suspension. Its Shenzhen shares dropped by their 10 percent limit to 28.18 yuan after it confirmed details of the agreement publicised by the U.S. government on Monday. ** Investors are also looking forward to the Federal Reserve policy decision later in the day. ** The Fed is widely expected to raise interest rates for the second time this year after a move in March, but the bigger question for investors is the outlook for future monetary tightening amid an ongoing economic expansion. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.7 percent, while Japan’s Nikkei index closed up 0.38 percent. ** The yuan was quoted at 6.4054 per U.S. dollar as of 0810 GMT, 0.02 percent weaker than the previous close of 6.404. ** As of previous trading session, the Hang Seng index was up 3.96 percent this year, while China’s H-share index rose 4.2 percent. As of previous close, the Hang Seng climbed 2.08 percent this month. ** About 1.68 billion Hang Seng index shares were traded, roughly 94.1 percent of the market’s 30-day moving average of 1.79 billion shares a day. The volume traded in the previous trading session was 1.42 billion shares. ** At close, China’s A-shares were trading at a premium of 18.88 percent over the Hong Kong-listed H-shares. (Reporting by the Shanghai Newsroom, Editing by Sherry Jacob-Phillips)

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