Nov 27 2019, 03:28 PM
QUOTE(Hansel @ Nov 27 2019, 02:21 PM)
Bros,.. this writeup is via courtesy of Bloomberg News, and selected by DBS Treasures, DBS Chief Investment Office.
MAINLAND CHINA & HONG KONG
Equity traders cheering the prospect of a restoration of stability in Hong Kong keep getting disappointed.
Stocks fell on Tuesday (26 November) with the Hang Seng Index down 0.29% to 26,913.92, as the city’s leader Carrie Lam offered no new concessions in her first public comments since Sunday’s vote. It follows Monday’s 1.5% gain in the Hang Seng Index, partly triggered by a landslide election victory for pro-democracy forces. Some analysts were predicting the results would force the government to address issues that have fuelled the unrest.
It is difficult have a view on Hong Kong’s equity market. Despite violent street protests and events such as a university siege, stocks have shown a tendency to revert to the mean for the better part of four months. The Hang Seng Index is more than twice as volatile as when protests began in early June, even though the index is basically flat.
This month has been particularly tricky for anyone trying to time the market. Hong Kong stocks lost USD118b in value on 11 November, their worst day in more than three months, after police shot and wounded a protester. A week later they rose, despite a dramatic standoff between protesters and police at a local university. A short squeeze then followed, stoking the world’s biggest gains. That ended after only two days.
For investors tired of the whiplash, hopes were high that another day of gains for the Hang Seng Index on Tuesday would provide a much-needed breather. But even if the weekend’s peaceful vote removed some near-term uncertainty, stock bulls have plenty of reasons to stay on the side lines. Turnover in Hong Kong was below this year’s average for 14 straight days before Alibaba Group Holding Ltd’s debut, showing a lack of conviction either way. – Bloomberg News.
Meanwhile, the Shanghai Composite Index eked out a 0.03% gain to 2,907.06.
Day by day it's very volatile, but the market has been trending up since mid Aug. I would say avoid HK domiciled stocks and stick to Chinese stocks (HSCEI). HSCEI index is up nearly 8% since Aug compared to HSI which is up 6.77%.MAINLAND CHINA & HONG KONG
Equity traders cheering the prospect of a restoration of stability in Hong Kong keep getting disappointed.
Stocks fell on Tuesday (26 November) with the Hang Seng Index down 0.29% to 26,913.92, as the city’s leader Carrie Lam offered no new concessions in her first public comments since Sunday’s vote. It follows Monday’s 1.5% gain in the Hang Seng Index, partly triggered by a landslide election victory for pro-democracy forces. Some analysts were predicting the results would force the government to address issues that have fuelled the unrest.
It is difficult have a view on Hong Kong’s equity market. Despite violent street protests and events such as a university siege, stocks have shown a tendency to revert to the mean for the better part of four months. The Hang Seng Index is more than twice as volatile as when protests began in early June, even though the index is basically flat.
This month has been particularly tricky for anyone trying to time the market. Hong Kong stocks lost USD118b in value on 11 November, their worst day in more than three months, after police shot and wounded a protester. A week later they rose, despite a dramatic standoff between protesters and police at a local university. A short squeeze then followed, stoking the world’s biggest gains. That ended after only two days.
For investors tired of the whiplash, hopes were high that another day of gains for the Hang Seng Index on Tuesday would provide a much-needed breather. But even if the weekend’s peaceful vote removed some near-term uncertainty, stock bulls have plenty of reasons to stay on the side lines. Turnover in Hong Kong was below this year’s average for 14 straight days before Alibaba Group Holding Ltd’s debut, showing a lack of conviction either way. – Bloomberg News.
Meanwhile, the Shanghai Composite Index eked out a 0.03% gain to 2,907.06.
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