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HK: No anomalies in market selloff
Last Updated: 2024-01-24 09:52 | China Daily
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The Hong Kong Special Administrative Region government is keeping a watchful eye on the local stock market, and has concluded that the market is operating in an orderly manner with no unusual occurrences or anomalies, HKSAR Chief Executive John Lee Ka-chiu said on Tuesday.
 
Lee made the remarks before a weekly Executive Council meeting, responding to the slump of Hong Kong's benchmark Hang Seng Index, which dipped below the key 15,000-point mark on Monday.
 
He said Hong Kong regulatory authorities believe the city's bourse is functioning in line with expectations, despite high interest rates, an intricate geopolitical landscape, uncertainties in supply chains and freight, as well as the impact of shifting dynamics stemming from the US presidential campaign and its ramifications on the global stage.
 
The SAR leader underscored that Hong Kong, as an international financial center, remains competitive and attractive, adding that with free capital flows and a robust regulatory framework in place, the city thrives in an environment of fair competition.
 
The HSI bounced back 2.63 percent, or 392.80 points, to close at 15,353.98 points on Tuesday, while the Hang Seng Tech Index surged 3.7 percent. The Shanghai Composite Index saw a marginal uptick of 0.53 percent to 2,770.98, although still lingering near lows unseen since April 2020.
 
During a State Council executive meeting on Monday, Premier Li Qiang emphasized the importance of improving the quality and investment value of listed companies, increasing the entry of medium- and long-term funds and strengthening inherent market conditions.
 
On the same day, Vice-President Han Zheng met with Mark Tucker, chairman of HSBC Group, in Beijing, during which he reiterated unwavering support for the development of Hong Kong's financial sector, and called for HSBC to deepen cooperation and make new contributions to consolidating the SAR's position as a global financial hub.
 
Citing Han's remarks on the central authorities' support and the city's well-established advantages, Lee said he has full confidence in the local financial market.
 
Lee urged investors to exercise prudence and carefully monitor market fluctuations before making any decisions, as the stock market is inherently characterized by ups and downs.
 
"The HSI is expected to regain momentum and rebound to 20,000 points in the second half of this year as expected interest rate cuts by the US Federal Reserve can have positive implications for the exchange rate of the renminbi and the performance of Chinese stocks," said Conita Hung, executive committee member of the Hong Kong Institute of Financial Analysts and Professional Commentators.
 
The Chinese mainland is likely to continue its efforts to introduce favorable monetary policy adjustments to strengthen investor confidence, particularly against the backdrop of the current lackluster investor sentiment, which is seen as a major obstacle impeding the development of the stock market, Hung added.
 
However, she expects the sluggish property market, which may not recover until the fourth quarter of this year or early next year, could continue to weigh on the stock market.
 

(Editor:Fu Bo)

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HK: No anomalies in market selloff
Source:China Daily | 2024-01-24 09:52