16-10-2019, 06:04 PM
Hazard investing? Here are 10 stocks to buy, if and when Hong Kong’s street mayhem end, according to Morningstar
* A “V-shaped recovery” is possible for Hong Kong’s key stock index, which has fallen 12 per cent in six months
* Hang Seng stock index was the third-biggest loser out of 94 global benchmarks in the past six months, surpassed only by Kazakhstan and Zambia
Daniel Ren
Published: 1:28pm, 16 Oct, 2019
Updated: 4:56pm, 16 Oct, 2019
The Hang Seng Index, the world’s third-biggest loser in the past six months, stands to recover its lost ground if Hong Kong can put a quick end to the four months of street protests that are pushing the city’s economy into recession, according to research by Morningstar.
“The question is how quickly the government can reinstate confidence,” said Morningstar’s equity research analysts Philip Zhong and Michael Wu, in an emailed report. “We believe that confidence can return quickly, and a V-shaped recovery is possible given past response.”
Morningstar’s bullish forecast is in stark contrast to the sense of doom that has gripped one of the world premier fundraising hubs, as the worst political crisis in Hong Kong’s history drives the city’s economy to a technical recession in the fiscal third quarter ending in December. Visitors have stayed away from the city, causing retail sales and consumption in the services-dependent economy to plummet.
The Hang Seng Index has fallen 12 per cent in six months, while the China Enterprises Index fell 11.2 per cent. Only the benchmarks of Kazakhstan and Zambia did worse than Hong Kong during the period, according to Bloomberg analytics. Real estate developers, which make up 11.4 per cent in combined weight on the Hang Seng Index, were the biggest drivers of the benchmark’s decline, Morningstar said.
More details in https://www.scmp.com/business/companies/...hong-kongs
* A “V-shaped recovery” is possible for Hong Kong’s key stock index, which has fallen 12 per cent in six months
* Hang Seng stock index was the third-biggest loser out of 94 global benchmarks in the past six months, surpassed only by Kazakhstan and Zambia
Daniel Ren
Published: 1:28pm, 16 Oct, 2019
Updated: 4:56pm, 16 Oct, 2019
The Hang Seng Index, the world’s third-biggest loser in the past six months, stands to recover its lost ground if Hong Kong can put a quick end to the four months of street protests that are pushing the city’s economy into recession, according to research by Morningstar.
“The question is how quickly the government can reinstate confidence,” said Morningstar’s equity research analysts Philip Zhong and Michael Wu, in an emailed report. “We believe that confidence can return quickly, and a V-shaped recovery is possible given past response.”
Morningstar’s bullish forecast is in stark contrast to the sense of doom that has gripped one of the world premier fundraising hubs, as the worst political crisis in Hong Kong’s history drives the city’s economy to a technical recession in the fiscal third quarter ending in December. Visitors have stayed away from the city, causing retail sales and consumption in the services-dependent economy to plummet.
The Hang Seng Index has fallen 12 per cent in six months, while the China Enterprises Index fell 11.2 per cent. Only the benchmarks of Kazakhstan and Zambia did worse than Hong Kong during the period, according to Bloomberg analytics. Real estate developers, which make up 11.4 per cent in combined weight on the Hang Seng Index, were the biggest drivers of the benchmark’s decline, Morningstar said.
More details in https://www.scmp.com/business/companies/...hong-kongs