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.
Stocks resume decline, taking the local market to its worst January since 2016. A significant portion of Goldman clients say the market remains ‘uninvestable’. Evergrande units rebound.
The government is actively engaging with mainland Chinese regulators to speed up the approval process for companies listing in the city. Measures will also be rolled out to attract family offices and wealthy individuals.
The Japanese yen weakened against other major currencies in the Asian session on Tuesday, after the Bank of Japan left its massive monetary stimulus unchanged and downgraded its inflation outlook for the next fiscal year.