Main reference: Story in Beijing Youth Daily
HONG KONG SHARES mainly tracked weakness in the A-share markets in the first half of last year but took off in the second half.
And the Special Administrative Region's market chief says 2013 will be even better.
The head of the Hong Kong Exchange is upbeat on the potential for more of the same for a variety of reasons.
The year 2012 definitely took Hong Kong investors by surprise, managing to add 23%.
The benchmark Hang Seng Index added another 4.7% in January.
And Mr. Zhou Songgang, Chairman of the Hong Kong Exchange, expects more of the same in 2013, citing recent blue chip performance.
“January new bank loan growth in Mainland China exceeded 330 billion yuan. Although there is no immediate overall market impact, listed PRC banks rebounded on the news.
“Hong Kong-listed PRC banks like Minsheng, BOC, ABC, ICBC, CCB and Bocom all rose in recent trade.”
On Thursday, the first day of share trading after Hong Kong’s three-day Chinese New Year holiday and the first shot at the market for investors in the Year of the Snake, shares headed towards the important 23,400 point level
Minsheng Bank shot up nearly 6% on the day with fellow top-shelf lenders keeping pace.
“I expect that the global economic recovery will continue apace, and this will of course be good for our local market development and performance,” Mr. Zhou added.
He said that spirits were high in both China and Hong Kong with their shared cultural weeklong holiday just finishing up.
The Hong Kong bourse executive pointed to a slowly improving EU debt situation and improving share prices overseas as evidence of better days to come for Hong Kong equities.
Blue chip stock performance on the Hong Kong exchange has also given investors reason to smile as Spring approaches.
Mr. Zhou said that Chinese banks listed in Hong Kong as well as property plays were showing signs of a sustained upward climb and investors would do well to take note.
See also:
NY AUDITOR: Chinese Firms 60-70% Undervalued On Credibility Issues
China Bull Run Affecting Investors Differently
Top HK Gainers & Losers In January
SGX Stocks To Reap Harvest From China’s Agri Support
