Equity Bulls Are Abandoning Hong Kong as China Turmoil Mounts
- Hang Seng Index just posted its first quarterly loss in six
- Yuan weakness and Federal Reserve hikes impact financial hub
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Valuations have cratered, earnings estimates are down and forecasters are slashing their targets on Hong Kong’s stock market, which has gone from darling to pariah in under half a year.
While investors the world over worry about a tumbling yuan and the Federal Reserve’s plans to lift borrowing costs, the brunt of the impact is increasingly felt in a city that is entwined with both. The Hang Seng Index fell 1.1 percent Wednesday, its second day of losses, as yet another sign that China’s economy may be slowing faster than expected added fuel to the selloff and took multiples to two-year lows.