Stocks are charting a second day of winning in the Year of the Dragon after a wobbly start to trading. Funds are in no rush to chase the rally, despite Beijing’s recent intervention, a Bank of America survey shows.
Hong Kong stocks limped into the new lunar year as the market erased most of the intervention-driven rally this week. The Hang Seng Index ended the Year of the Rabbit in misery with a record 29 per cent loss.
Stocks drift lower as the midweek market rally wanes and Alibaba Group’s report card fails to impress. Deflation in China’s economy deepened in January.
Hong Kong stocks retreat after rising to the highest since January 11 as investors look to Alibaba’s earnings to add to other recent bullish report cards.
Hong Kong stocks jump by the most in two weeks as China’s market regulator pledges fresh measures to check the rout and the nation’s sovereign wealth funds boosted buying of onshore shares.
Stocks advance, aided by a twin boost from Beijing’s softening stance on the online video-gaming industry and signs of robust vehicle sales in mainland China.
Shares on the Hong Kong bourse offer excellent value and the market will receive unstinting support from Beijing. While the US and European markets are outperforming Hong Kong’s now, their ability to keep inflation down relies on the weakness of China’s post-Covid economy.
Bearish investors dominate the local stock market in January, as China’s lack of stimulus shows up in weak manufacturing data. With the Fed seen on hold, there will not be any early relief for the city’s property market.