Featured in Gene Linn’s China Weekly Roundup on EQUITIES Magazine Website
Gene Linn’s latest post, ”Back From the Brink”, discusses the numerous factors that plagued Hong Kong’s early losses, including falling U.S. markets and Hong Kong government tightening of the property market.
After closing for a holiday Monday, the blue chip Hang Seng Index pluged more than 400 points three straight days, shedding 1, 325 points, nearly 6%. The index for China stocks fell even more at 6.4%, 849 points. Further, The Hang Seng, which includes numerous Mainland heavyweights, dropped under its 20-day moving average.A big rebound Friday pushed both indexes up more than 2$ and back above the 20-day moving average.
The main culprit for the early losses was worry over losing the lavish global liquidity that has fueled this year’s bull run, according to Francis Lun, general manager of Fulbright Securities. “Norway became the first European country to raise interest rates, and India also planned to withdraw liquidity from the market. That raised fears of a drop in liquidity,” he said. Overall, Lun expects renewed U.S. economic growth to fuel stock price increases.
To continue reading this post and to read more of Gene Linn’s China Weekly Roundup, click here.
About Gene Linn:
After studying Chinese language in the Army, Gene Linn earned Bachelor’s Degree in journalism and a Master’s in East Asian Studies, focusing on Chinese language and politics. He worked for 14 years as a freelance business reporter in Hong Kong. One of his jobs was to write daily Hong Kong stock market reports for UPI for four years. He started writing a column on China-related stocks for EQUITIES Magazine in 2004.
About EQUITIES Magazine:
Since 1951, EQUITIES has served both retail and institutional investors by examining industry trends, analyzing strategies and opportunities, and profiling financial leaders and emerging public companies. Its global audience increased dramatically after the launch of its European and digital versions, as well as its website, which provides free real-time market quotes and a free customizable, real-time portfolio-management interface. EQUITIES is also one of a select group of publications available on the Apple iPhone.
