As concerted state buying puts a floor under mainland China\u2019s onshore stock market amid Beijing\u2019s stabilisation measures, investors in Hong Kong worry about coping with high volatility at a delicate time, with multiple market-roiling factors.<\/p>\n
These include geopolitical tensions, sluggish earnings growth, a stumbling artificial intelligence trade, possible US tightening and a looming supply glut from expiring share lock-ups.<\/p>\n
Investor worries also grew after renewed military strikes in the Middle East sent oil prices above US$100 a barrel, while Washington\u2019s latest initiative to buy up to US$6 billion worth of long-end Treasuries failed to stem bond-market sell-offs.<\/p>\n
A possible unwinding of the Japanese yen-financed carry trade may also weigh on Hong Kong stocks, which remain vulnerable to overseas flows, after heightened expectations that the Bank of Japan would accelerate interest-rate increases. The shift could trigger sell-offs in assets bought with borrowed cheap Japanese currency.<\/p>\n
\u201cState intervention may iron out volatility and provide liquidity to stabilise [mainland] stocks, at least in the near term,\u201d said Dai Ming, a fund manager at Huichen Asset Management. \u201cThe Hong Kong market is now to some extent marginalised, because of poor liquidity.\u201d<\/p>\n
The Hang Seng Index fell 1.3 per cent by the midday break on Thursday, taking cues from global caution about risk assets amid elevated Treasury yields and crude prices.<\/p>\n
The benchmark was heading for its biggest decline in two weeks, while mainland equities reacted more mildly, with the CSI 300 Index edging 0.3 per cent lower.<\/p>\n","protected":false},"excerpt":{"rendered":"As concerted state buying puts a floor under mainland China\u2019s onshore stock market amid Beijing\u2019s stabilisation measures, investors…\n","protected":false},"author":2,"featured_media":842644,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[77092,105892,550,28,75239,36942,8070,5425,36943,112,1535,17173,1866,356745,356744,3998],"class_list":["post-842643","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-a-shares","tag-asian-financial-crisis","tag-beijing","tag-business","tag-china-securities-regulatory-commission","tag-china-stocks","tag-hang-seng-index","tag-hong-kong","tag-hong-kong-stocks","tag-markets","tag-morgan-stanley","tag-seoul","tag-south-korea","tag-state-buying","tag-state-intervention","tag-taiwan"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/842643","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=842643"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/842643\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/842644"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=842643"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=842643"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=842643"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}