(Updates prices, adds context)
HONG KONG, June 2(Reuters) – Chinese stocks listed in Hong Kong weakened to near a one-month low on Monday and offshore yuan slipped as renewed Sino-U.S. tariff tensions weighed on sentiment.
Concerns over U.S.-China trade tensions flared up again following a fresh spat over tariffs. China’s Commerce Ministry rebuked U.S. President Donald Trump’s accusations that Beijing had violated the consensus reached in Geneva talks, calling them “groundless,” and vowed to take “forceful measures” to safeguard its legitimate rights and interests.
U.S. President Donald Trump and Chinese President Xi Jinping will speak soon to iron out trade issues including a dispute over critical minerals, Treasury Secretary Scott Bessent said over the weekend.
The Hang Seng China Enterprises Index, which tracks mainland companies listed in Hong Kong, tumbled 2.6% to the lowest since May 6, while Hong Kong’s benchmark Hang Seng Index slipped 2.2% to 22,778.45.
The offshore yuan traded at 7.2193 yuan per dollar, falling about 0.2% in Asian trading hours, while the Hong Kong dollar continued to hover around weaker side of the 7.75-7.85 per dollar trading band.
Mainland markets are closed for Dragon Boat Festival and will resume trading on Tuesday.
The declines on Monday were across the board, with the Hang Seng Tech Index losing 2.4%, while property subindex and healthcare sector both sliding more than 3%.
Among the biggest laggards, local property firm New World Development plunged 7.5% to a fresh two-month low after it deferred coupon payments.
Car makers continued the slide amid ongoing price war concerns. Shares of Li Auto tumbled 4.2%, while BYD and Nio lost more than 3%.
(Reporting by Jiaxing Li in Hong Kong; Editing by Janane Venkatraman and Rashmi Aich)
