Sands China Gains as Hang Seng Falls Amid US-China Trade Tensions

Macau Gaming Stocks Rally Despite Market Volatility Triggered by Tariff Fears

Sands China shares climbed as the broader Hong Kong stock market retreated on June 2 due to rising concerns over a renewed US-China trade war. The Hang Seng Index closed down 131 points, or 0.6%, at 23,157, with muted trading volumes marking the lowest turnover in nearly a month.

Market Performance Overview

The market opened sharply lower, falling 246 points at the open to 23,043 and briefly dipping to 22,668 before recovering part of the losses. The China Enterprises Index fell 0.9% to 8,359, while the Technology Index declined 0.7% to 5,134. The session's total turnover was HK$145.2 billion (US$18.6 billion).

Investor caution followed the US government’s announcement to double tariffs on imported steel and aluminium, increasing them from 25% to 50% effective June 4. This move sparked a flight to safe-haven assets such as gold, lifting spot gold prices above US$3,340 per ounce. Tongguan Gold shares surged over 18% as a result.

Macau Casino Stocks Outperform

In contrast to the broader market, Macau gaming stocks saw a notable rise. May revenue in the sector climbed 5% year-on-year to MOP21.19 billion (US$2.63 billion), beating forecasts. Sands China led blue-chip gains with a 4.3% rise. Other outperformers included Mixue Bingcheng, up 7.5% following a revised price target, while Longfor real estate stock dropped 5.1%.

Capital Flows and Policy Signals

Muted trading was largely attributed to a pause in northbound capital flow, contributing to the lowest turnover seen in weeks. Analysts warned that unless the Hang Seng Index breaks past the 23,083 level soon, a retest of the 22,000 support level could follow.

Meanwhile, Chinese authorities are expected to implement policy measures aimed at supporting domestic demand. These include trade-in subsidies for consumer goods and accelerated local bond issuance to boost liquidity and market confidence.

Investor Takeaways

While geopolitical risks continue to weigh on market sentiment, sectors tied to Macau tourism and gold are emerging as relative winners. As the market navigates through tariff shocks and capital flow volatility, investor focus may shift to defensive and high-yield segments like gaming and precious metals.