Hong Kong Assets Turn Toxic as Trade War and Protests Cloud Outlook
- Stocks just completed longest streak of losses in 35 years
- Local currency, retailers and property also under pressure
This article is for subscribers only.
Investor anxiety is visible just about everywhere in Hong Kong’s markets as recession warnings and escalating protests strain sentiment to breaking point.
While most of the world recovered Tuesday from a yuan-induced meltdown, Hong Kong saw the biggest spike in interbank rates in more than a decade, the longest stretch of equity declines since 1984 and the wildest stock swings in four years. Bears reloaded on the local dollar in a way not seen since 2017, betting it will soon break through the weak end of its trading band.