Good Articles to Share
Hong Kong protests knock investor confidence in city’s shares
HONG KONG: Hong Kong property stocks are turning into the biggest casualties of the city’s escalating street protests as investors worry about the economic impact and Beijing’s response.
Swire Properties Ltd. and Wharf Real Estate Investment Co. slumped more than 4% to lead declines on the MSCI Hong Kong Index, which retreated 1.8%. Volume on the gauge already topped the daily average for the past three months.
Link REIT and New World Development Co. also slid before a rare briefing by China’s top office for Hong Kong affairs.
Hong Kong’s financial markets had been relatively resilient to the unrest, with the MSCI measure trading on Friday less than 5% away from its record high.
But after an eighth weekend of protests saw police again firing tear gas and rubber bullets in downtown Hong Kong, investors are turning more cautious.
“Compared with the past political events, this round is the worst in Hong Kong so far,” said Shaun Tan, UOB Kay Hian analyst in Hong Kong.
“It’s still very difficult to forecast the long-term impact. There will be lots of pressure on the retail sales given the recent political events. Sales of large residential units can also be coming down due to that.”
The social unrest is affecting Hong Kong’s economy, Financial Secretary Paul Chan said on his blog.
Some global luxury retailers said in recent weeks the unrest weighed on sales due to store closures and fewer tourists.
The Hang Seng Properties Index tumbled 2.4%, poised for its worst loss since June 12. The measure is down 11% from this year’s high. Swire headed for its worst decline this year, while New World slid to its lowest level since January.
With Hong Kong’s leader Carrie Lam keeping a low profile, investors are looking to see what the Communist Party will do to maintain public order.
The Hong Kong and Macau Affairs Office, which reports to China’s cabinet, scheduled a news conference at 3 p.m. Monday in Beijing, which the South China Morning Post newspaper said was a first since the end of British colonial rule in 1997.
"The events over the weekend show that the government seems to be unable to control the situation," said Jackson Wong, asset management director at Amber Hill Capital Ltd. If China says it is "coming to help, it would be a big negative to the market due to the speculation about the People’s Liberation Army."
- Bloomberg
More articles on Good Articles to Share
Private equity flops leave institutional investors vulnerable to sell-off
Created by Tan KW | Aug 07, 2024
Discussions
Be the first to like this. Showing 1 of 1 comments
Post a Comment
Featured Posts
Latest Videos
Apps
Top Articles
1
CEO Morning Brief
2
Genetec - A baby step
3
6
7
8
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
MQ Trading Signals
Stock
Time
Signal
Duration
Stock
Time
Signal
Duration
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
VWWong
There is no glory in forcing people to live like you and under your roof. What makes you think, you can run my life and tell me how to live? Who are you to tell me how shall I live? Just because you got more money and bigger cock, therefore you can tell me and dictate me how should I live my life. I don't care about the glory of China. I am a human being who values freedom of speech , religion and democracy. If you love Chinese commmunist party so much, go and live there. Go home to china and dont' speak 1 word of english. Forcefully occupying neighbours and countries and people who don't want to be under the Chinese Communist party is a gangster approach. If the Chinese communist party really cares for the people, then hold a referendum to determine whether Hongkongers or Taiwanese want to live under COmmunist rule. Why force it. Britain didn't force the british for Brexit. They hold a referendum. THis is the only fair way.
2019-07-29 19:23