Hong Kong’s Stock Slump Triggers Wave of Brokerage Closures
- The Hang Seng Index is set for a record fourth year of losses
- Liqiuidity has dried up amid foreign disinterest, IPO drought
Hong Kong’s government has taken steps to arrest the downturn and stimulate trading.
Photographer: Paul Yeung/BloombergThis article is for subscribers only.
A historic slump in Hong Kong’s $4.6 trillion stock market is rippling through the city’s financial industry.
Thirty local brokerages have closed down this year, after a record 49 shut up shop in 2022, according to Hong Kong stock exchange data. That comes as Wall Street banks lay off dealmakers due to a plunge in initial public offerings.