Headline shares of the Hong Kong financial market closed little changed on Monday, 17 December 2018, as traders avoided risk taking amid concerns over trade and growth outlook, while awaiting fresh developments linked to Sino-American trade tensions and the U.S. Federal Reserve's policy review meeting. At closing bell, the Hang Seng Index declined 6.81 points or 0.03% to 26,087.98. The Hang Seng China Enterprises Index fell 7.62 points or 0.07% to 10,351.81.

Chinese President Xi Jinping marks the 40th anniversary of Deng Xiaoping's opening of the nation's economy to the world with a keynote speech at a conference scheduled for Tuesday. Top leaders are also due to map out economic and reform plans for 2019 during an annual Central Economic Work Conference this week. It comes as Beijing's trade war with Washington spurs government advisors and think tanks to urge for urgent reforms in Asia's largest economy.

China will temporarily suspend additional 25 per cent tariffs on US-made vehicles and auto parts starting Jan. 1, 2019, the finance ministry said on Friday, following a truce in a trade war between the world's two largest economies.

In the United States, the Federal Reserve holds its final policy meeting of 2018 on Tuesday and Wednesday. The rate decision will be followed by a press conference with chairman Jerome Powell. The Federal Reserve is set to raise interest rates by 25 basis points at its Dec. 18-19 meeting and possibly indicate a trajectory for further tightening expectations, which could set the tone for currencies and other financial markets in coming months.

Brexit developments also remained in focus after U.K. Prime Minister Theresa May attacked one of her predecessors - accusing Tony Blair of undermining the Brexit talks by calling for another referendum. She reportedly called his comments an insult to the office he once held and said MPs could not abdicate responsibility to deliver Brexit by holding a new poll.

Shares of auto makers declined after China announced to suspend tariffs on US-made vehicles and auto parts, triggering the downward adjustment of manufacturer's suggested retail price for some automakers. Geely Automobile (00175) fell 2.6% to HK$14.1. BYD (01211) sank 4.4% to HK$54.7. Brilliance China Automotive (01114) dipped 3.1% to HK$6.03. BAIC Motor (01958) slipped 2% to HK$4.32.

Shares of utilities gained as some investors parked their funds on defensive counters. CLP Holdings (00002) gained 1.7% to HK$89.55. CKI Holdings (01038) added 1.5% to HK$59.65.

Shares of Macau gaming counters closed lower. MGM China (02282) declined 2.2% to HK$13.64. Galaxy Entertainment (00027) slipped 1.9% to HK$50.2. Sands China (01928) shed 1.4% to HK$34.8. Wynn Macau (01128) dropped 0.8% to HK$18.26. Melco International (00200) retreated 0.4% to HK$15.12. But SJM Holdings (00880) added 0.4% to HK$7.31.