The half-century-old Hong Kong stock market index has become a victim of market mistimeliness. But while the Hang Seng Index was adding shares of China’s new economy, regulators in Beijing embarked on a massive crackdown on the country’s growing domestic tech giants that caused a massive sell-off. “The growth in market capitalization in the Hong Kong market has been driven by its ability to raise capital for more companies rather than an increase in share prices,” said Redmond Wong, market strategist at Saxo Capital Markets. But Chinese stocks listed in Hong Kong are likely to remain at the mercy of the Fed’s deliberations on a rate hike. That will be the main driving force for all stock markets, not just the Hang Seng Index, said Louisa Fook, China equities analyst at Bank of Singapore.

Source: Wall Street Journal October 16, 2022 04:38 UTC