Skip to content
Subscriber Only

Hong Kong Faces Worst Earnings Recession Since 2008 Crisis

  • Analysts predict operating income will slump 19% this year
  • Shares have lost more than $600 billion in value since June
Video player cover image
Hong Kong's Economic Outlook Darkens
Updated on

Hong Kong stocks are poised for their worst quarter since 2015 and corporate earnings are unlikely to save them.

After a sell-off erased more than $600 billion from the city’s equities, attractive valuations stood as a potential bright spot. But those multiples don’t look so good when analysts keep slashing their profit forecasts for 2019. Their call for an average 19% slump in operating income would be the biggest contraction for Hang Seng Index companies since the global financial crisis, data compiled by Bloomberg show.