Hong Kong shares advanced early Thursday after opening lower, ignoring a weak finish on Wall Street and a sharp decline in Shanghai. Shares of market heavyweight HSBC Holdings jumped 2.7% on an improved outlook after its first-half results earlier in the week, with property stocks also higher. The Hang Seng Index rose 0.6% to 20,615.63, while the Hang Seng China Enterprises Index was flat at 11,965.12. China's Shanghai Composite Index slumped 2.2% to 3,352.26 amid concerns regulators there might fine-tune moderately loose monetary policies. Most banks declined, and steelmakers extended losses in Shanghai, with Bank of China losing 1.8%, while Baoshan Iron & Steel sunk 4.3%. http://www.marketwatch.com/story/hong-kong-advances-while-shanghai-stocks-tumble-2009-08-05
The Chinese market is likely to fall 25 percent, taking U.S. stocks with it, with the S&P 500 possibly falling below 800, Robin Griffiths, technical strategist at Cazenove Capital, said Monday. But then U.S. indexes will rise again for a substantial amount of time. China has been the "strongest market on the planet," Griffiths said. It bottomed in October last year and went more or less straight up, he added.
Depends on your time horizon. The Hang Seng Index was over 30,000 about two years ago. It is now around 21,000. Since then earnings have grown considerably, so you could argue that Chinese stocks are dirt cheap now relative to 2007 pricing.
you should realized that officials from Chinese Central Bank has express concern with new loans been funneled back into stock market and housing at end of last month. Timing is very strange, 2 moths before Chinese celebrating national day in Oct1.
The fact that Hong Kong, China, Brazil Russia stock markets are surging like nothing ever happened helps prove my original 2007-2008 thesis that there was never a credit crunch nor credit crisis and that the fundamentals of the US & global economies are strong.
yep, yep, yep. They said that on the first big rise after 1929 too. And the next one as well. Bear market rallies are impressive to behold. So we wait and see if for once stcktrdr knows something about fundamentals that overturns the debt baggage and the loss of baby boomer spending.