China Returns at 5 Times Hong Kong Easy Choice for Investors
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The divide in Hong Kong’s stock market between the city’s own companies and those that make most of their money in China will only get bigger.
That’s the verdict of investors and brokerages from JPMorgan Asset Management to UOB-Kay Hian Holdings Ltd. who watched the MSCI Hong Kong Index rise 2 percent last year as the Hang Seng China Enterprises Index jumped 11 percent. Monetary policy that favored Hong Kong since 2010 -- stimulus from the U.S. Federal Reserve and restraint from China’s central bank -- is reversing course, dimming the outlook for everything from casinos to developers and retailers.