The Year of the Ox is auspicious for Hong Kong stock investors, CLSA’s Feng Shui Index says

The Hang Seng Index will peak in August and end the year higher than where it starts, with pullbacks to occur in April and October, according to the Chinese-styled astrological index

As the Year of the Ox is related to water and metal, industries linked to the two natural elements, such as logistics, shipping and financial services, will do well

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CLSA analysts Jamie Chan (left) and Gabriel Ke unveil the Feng Shui Index on Wednesday. Photo: Handout

Published: 7:30am, 28 Jan 2021Updated: 7:30am, 28 Jan 2021

The Year of the Ox bodes well for Hong Kong stocks, as the world’s third-largest equity market is expected to finish the lunar year higher, according to CLSA’s Feng Shui Index.

The Hang Seng Index will peak in August and end the year higher than where it starts, with pullbacks to occur in April and October, said Jamie Chan and Gabriel Ke, analysts at the investment bank who compiled the Chinese-styled astrological index.

As the Year of the Ox is related to water and metal, from a feng shui perspective, industries linked to the two out of the five natural elements, such as logistics, shipping and financial services, will do well, they said. The Year of the Ox starts on February 12, and coincides with the start of the spring festivities.

CLSA’s Feng Shui Index, which takes a tongue-in-cheek look at the stock market based on the principles of feng shui, the ancient Chinese system of harmonising individuals with their surroundings, has been released every year since 1992. It surprised investors on its debut by correctly predicting the seven inflection points of the Hang Seng Index that year.

While CLSA says the feng shui guidance is for entertainment purposes only, the index is still seen by many investors as an important informal indicator of Hong Kong stocks.