Hong Kong stocks wavered near an eight-month high as traders pondered whether to cash in on the bull run, while robust mainland tourism data for the holiday period helped support sentiment.
Investment banks including Goldman Sachs, UBS and BNP have become more positive on Chinese stocks, with foreign selling having subsided. But the property crisis, deflationary risks and tepid consumer demand mean global investors are yet to go all ‘all in’.
Technical factors, like the unwinding of the ‘Asia ex-China’ trade, seem to be driving Hong Kong’s stock rally, as opposed to underlying fundamentals. In the longer run, the narrative around China’s economy and markets has to brighten considerably if Hong Kong stocks are to continue their recovery.
Foreign investors loaded up on Chinese stocks for a third straight month in April, adding to evidence that global fund managers have become more positive about the world’s second-largest market.
Hong Kong kept its key interest rate unchanged for a sixth consecutive time in lockstep with the Federal Reserve’s overnight decision, with sticky US inflation forcing investors to delay rate cut bets.
Hong Kong’s market is the best performer among major peers globally this month, and better-than-expected manufacturing activity in mainland China is expected to add further impetus.
Hong Kong stocks emerged as the best-performing key market globally in April, after funds sought bargains by shifting out of expensive US and Japanese equities and as China’s growth shows more signs of stabilising.
Mainland Chinese regulator has announced a strong package of measures to support city’s status as Asia’s – and indeed the world’s – premier financial hub.
Hong Kong stocks rose for its best weekly performance since November 2022 as positive earnings from top-tier Chinese companies and supportive policy measures boosted investor confidence
Hong Kong stocks rise on optimism that the appetite for Chinese assets is returning as Beijing pledges support to markets and signs of an earnings recovery emerges.