Hong Kong stocks ‘closer to the bottom’ after breaking 17,000-point floor, but trades are only for the brave, strategist Hong Hao says
- Outspoken China market strategist says Hang Seng Index is closer to the bottom than the top after a 28 per cent beating this year
- Trade is only for the brave as market is still plagued with geopolitical challenges
Myriad problems plaguing the local market since the onset of the Covid-19 pandemic have refused to go away, including China’s zero-Covid strategy, the US-China audit and technology spats, and the threat of global recession stoked by aggressive interest-rate increases in the US and elsewhere.
“Hong Kong is cheap,” Hong, a market strategist and chief economist in Hong Kong at Grow Investment Group, said in an email on Tuesday. “But geopolitical tensions and overseas market volatility will continue to distress Hong Kong. That is the reason why this is a trade for the brave.”
The 73-member Hang Seng Index has now lost 16,286 points, or 50 per cent of its points, in four years after peaking at 33,154 in January 2018, according to market data. It took the index 10 years to accummulate that points en route to its all-time high.
