Asian indexes mostly rose, with oil and blue-chip gains driving Chinese markets to record closes while technology gains boosted Tokyo shares ahead of earnings reports. HK rose 702 to close at 29,540 which is yet another new high.
The HK market is being re-rated. Back in 1997, we had 6 million of population and 800,000 investors. Now with the announced QDII, through train, and other investors potentially coming from the Mainland, the market is looking very different from a domestic demand standpoint. Then we need to add the demand from overseas investors who is looking at HK as a proxy market for the Mainland because over 60% of the HK market capitalisationa dn over 70% of the daily turnover are in Maionland stocks.
The main investors are from the Middle-East. When I visited Saudi Arabia and Abu Dhabi early this year, I was told by their government investment authories that their national budget is based on US$35 per barrel. With oil now at US$85 per barrel, the excess need to be invested somewhere. Of the BRIC countries (Brazil, Russia, India, and China) HK is the biggest market and has the best regulatory and corporate governance environment.
Market Indices
Australia All Ordinaries 6751.60 - 0.13%
Bombay Sensex* 19085.12 + 3.60%
Hong Kong Hang Seng 29540.78 + 2.44%
Japan Nikkei 17358.15 + 0.16%
Shanghai Composite 6030.08 + 2.15%
Singapore STI 3862.02 + 0.12%
South Korea Composite 2035.39 + 0.44%
Taiwan Weighted 9518.45 + 0.23%
*Intraday trading
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment