The Hong Kong Stock Exchange, nestled in Exchange Square in Central, saw a positive turn as the Hang Seng Index continued its rebound, showcasing resilience amidst global economic uncertainties. The recent turmoil caused by the US’ tariff escalations seems to be waning, with the benchmark index climbing 0.78 percent to 21,562 points.
Following a significant drop triggered by the tariff announcements, the index has managed to claw back more than half of its losses, instilling a sense of stability among investors. The Hang Seng China Enterprise Index and the Hang Seng Tech Index also showed modest gains, reflecting a broader sentiment of cautious optimism in the market.
Francis Kwok Sze-chi, Vice-Chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators, noted that the initial shockwaves from the tariffs have subsided, allowing for a more rational approach to trading. This shift in sentiment is expected to support a sustained recovery in the Hong Kong stock market in the coming days.
Experts believe that the current market conditions present an opportune moment for global investors to tap into the Hong Kong market, leveraging the city’s advancements in AI innovation and the attractive valuation metrics compared to US stocks. Jeff Lam Chak-fai, a lecturer at Hong Kong University, emphasized the potential for Hong Kong stocks to outperform their US counterparts in the near term.
Sam Lee, Head of Equity Research at China Merchants Securities International, highlighted the favorable price-to-earnings ratio of the Hang Seng Index, making it an appealing option for investors seeking value opportunities. Despite the positive outlook, concerns linger about the ongoing market volatility influenced by external factors such as US market trends and policy decisions.
The uncertainties surrounding the global economic landscape, exacerbated by the US’ tariff policies, continue to loom large over the financial markets. Tom Chan Pak-lam, Director of the Institute of Securities Dealers, cautioned that while short-term measures may stabilize the market, the long-term impacts remain unpredictable and could manifest in the near future.
Looking ahead, market analysts anticipate that the Hong Kong Stock Exchange will remain intertwined with global market dynamics, particularly influenced by US-China trade relations, Federal Reserve policies, and currency fluctuations. The evolving geopolitical landscape and economic shifts are expected to shape investment strategies and market sentiments in the months to come.