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28-11-2017, 06:37 PM
Hong Kong's China-Fueled Equity Rally Is Now at Beijing's Mercy
By Justina Lee
November 28, 2017, 5:43 PM GMT+8
Hong Kong shares have been among the world’s best performers this year, but concern is mounting that China could take away the punch bowl.
The Hang Seng Index fell as much as 1.2 percent on Tuesday after China was said to have stopped approving mutual funds that plan to invest mainly in Hong Kong stocks. Mainland investors have been a major force behind the market’s surge, with their net inflows totaling $86 billion from April 2016 through last month, data compiled by Bloomberg show, compared with just $3.3 billion from foreign funds based elsewhere, according to EPFR Global data.
With these rising Chinese inflows comes the risk of a reversal, especially given the nation’s notoriously fickle regulations and market conditions. The question now is whether the latest move signals China’s policy makers are growing uncomfortable with the large flows into the Hong Kong equity market, which has posted gains five times Shanghai’s this year.
More details in https://www.bloomberg.com/news/articles/...ng-s-mercy
By Justina Lee
November 28, 2017, 5:43 PM GMT+8
Hong Kong shares have been among the world’s best performers this year, but concern is mounting that China could take away the punch bowl.
The Hang Seng Index fell as much as 1.2 percent on Tuesday after China was said to have stopped approving mutual funds that plan to invest mainly in Hong Kong stocks. Mainland investors have been a major force behind the market’s surge, with their net inflows totaling $86 billion from April 2016 through last month, data compiled by Bloomberg show, compared with just $3.3 billion from foreign funds based elsewhere, according to EPFR Global data.
With these rising Chinese inflows comes the risk of a reversal, especially given the nation’s notoriously fickle regulations and market conditions. The question now is whether the latest move signals China’s policy makers are growing uncomfortable with the large flows into the Hong Kong equity market, which has posted gains five times Shanghai’s this year.
More details in https://www.bloomberg.com/news/articles/...ng-s-mercy
Specuvestor: Asset - Business - Structure.
