{"id":14673,"date":"2018-09-11T10:22:33","date_gmt":"2018-09-11T10:22:33","guid":{"rendered":"http:\/\/qatar-news.org\/qatarnewsEn\/?p=14673"},"modified":"2018-09-11T10:22:33","modified_gmt":"2018-09-11T10:22:33","slug":"chinas-troubles-push-hong-kong-stocks-into-a-bear-market","status":"publish","type":"post","link":"https:\/\/qatar-news.org\/qatarnewsEn\/?p=14673","title":{"rendered":"China’s troubles push Hong Kong stocks into a bear market"},"content":{"rendered":"
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\"Analyst:\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

Hong Kong’s stock market is caught in a perfect storm.<\/h2>\n

Fears about the trade war, emerging markets, China’s slowing economy, and individual stocks pushed the city’s benchmark Hang Seng Index<\/span> (HSI<\/a><\/span>)<\/span> into a bear market on Tuesday. <\/p>\n

The index ended the day 0.7% lower, closing more than 20% below its recent peak in January. <\/p>\n

The Hong Kong market, one of the world’s most heavily traded, has been rocked this year by the escalating trade war <\/a>between China and the United States. The waves of new tariffs have hurt Hong Kong because many of the biggest companies listed in the city are based in China. <\/p>\n

Dickie Wong, research director at Hong Kong-based stock broker Kingston Securities, predicts the market could potentially fall another 5% in the short term. The gloom is likely to last at least until the US midterm elections in November. <\/p>\n

“Increasing tensions between the United States and China are not going to end before then,” Wong said. <\/p>\n

\"hong
The Hong Kong market has been hit this year by the escalating trade war between China and the United States.<\/figcaption><\/figure>\n

Mainland Chinese stocks entered a bear market<\/a> in late June, and have <\/strong>fallen a further 6% since then. <\/p>\n

The trade war is already beginning to take its toll on the Chinese economy, according to recent data<\/a>. China’s currency, the yuan, has also fallen in recent months. <\/p>\n

That makes it more expensive for Chinese investors to buy Hong Kong stocks because they are priced in the Hong Kong dollar, which is pegged to the US dollar. <\/p>\n

<\/p>\n

Tencent’s tumble<\/h2>\n

<\/strong> <\/p>\n

One of the most notable casualties of recent declines in Hong Kong has been Tencent<\/span> (TCEHY<\/a><\/span>)<\/span>. The internet giant has lost about $200 billion in market value since January, weighed down by concerns about the Chinese government’s moves to tighten restrictions on online gaming<\/a>. <\/p>\n

Tencent is one of the biggest components of the Hang Seng, so steep declines in its share price can drag down the index as a whole, Wong noted. Investors are also pessimistic about the prospects of other heavyweight stocks such as HSBC<\/span> (HBCYF<\/a><\/span>)<\/span>, he added. <\/p>\n

The Hong Kong market, which hit an all-time closing high<\/a> in January, is facing other problems. <\/p>\n

After crises in Turkey and Argentina, nervous investors have yanked money out of other emerging markets<\/a>. That has hit Chinese stocks listed in Hong Kong, since China is considered to be the world’s biggest emerging market. <\/p>\n

Hong Kong is also feeling the heat from the US Federal Reserve, which is raising interest rates<\/a>. Hong Kong follows the Fed when it comes to rate hikes, which make it more expensive for investors to borrow cash and buy shares. <\/p>\n

CNNMoney (Hong Kong) <\/span> First published September 11, 2018: 5:17 AM ET<\/span> <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Hong Kong’s stock market is caught in a perfect storm. Fears about the trade war, emerging markets, China’s slowing economy, and individual stocks pushed the city’s benchmark Hang Seng Index (HSI) into a bear market on Tuesday. The index ended the day 0.7% lower, closing more than 20% below its recent peak in January. The…<\/p>\n","protected":false},"author":10,"featured_media":14674,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-14673","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world_news"],"_links":{"self":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/posts\/14673","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14673"}],"version-history":[{"count":0,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/posts\/14673\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/media\/14674"}],"wp:attachment":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14673"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}