Hong Kong stock market’s finest wager is extra accumulate entry to to mainland financial savings
Hong Kong is a key beneficiary of mainland China’s high household financial savings price. A spillover of capital into Hong Kong from the mainland’s overflowing reservoir of household financial savings might well present noteworthy-well-known reduction for Hong Kong, which is struggling with protracted economic and geopolitical uncertainties.
While the mainland is subjected to capital controls, Hong Kong is handled as a selected case, with Beijing gradually easing restrictions to enable money to waft below various schemes.
On the World Monetary Leaders Summit held in Hong Kong in November, Vice-Premier He Lifeng, the nation’s top economic reliable, mentioned: “To bustle up the enchancment of our nation into a financial powerhouse requires Hong Kong to become an even stronger world financial centre.”
The very fact is that Hong Kong’s stock market has been held help by insufficient funding demand of for years. This is obvious in different techniques, comparable to how most preliminary public choices (IPOs) in Hong Kong don’t slay. Within the past 5 years, 473 firms were listed and of these 81 per cent accrued commerce below their IPO mark.
2d, procuring and selling volume is lacklustre. Up to now this three hundred and sixty five days, the market’s common each day turnover is HK$128 billion (US$16.4 billion), which is below ranges viewed in 2020 and 2021. For comparability, the mixed each day turnover of the mainland’s Shanghai and Shenzhen exchanges is about 5 cases greater than Hong Kong.
Third, Hong Kong allotment prices had been inclined, with the Hang Seng Index declining 16 per cent within the past 10 years. All thru the same duration, the S&P 500 index increased nearly 190 per cent.
