Hong Kong Bourse Frenzy Fades as $16 Billion Value Erased
- Average daily turnover falls this quarter to lowest in a year
- HKEx shares to extend losses, Haitong, Morgan Stanley predict
Pedestrians cross a road in front of a tram in the central business district of Hong Kong, China, on Thursday, July 9, 2015. After tumbling the most since the financial crisis on July 8 amid a record surge in volatility, the Hang Seng Index rebounded Thursday to its biggest gain in three months.
Photographer: Jerome Favre/BloombergThe outlook for Hong Kong’s exchange operator is dimming after the wildest year for its investors since 2008.
So say analysts at Haitong International Securities Group Ltd. and Morgan Stanley who have sell calls on Hong Kong Exchanges & Clearing Ltd. They’re not alone, with the proportion of analysts making similar recommendations rising this month to the highest since November 2013. HKEx soared 80 percent this year through a May peak before a 35 percent drop erased $16 billion in market capitalization, more than the entire value of London Stock Exchange Group Plc.