Yao Lina, an accountant in Shanghai, says the 43 percent opening-day gain for China’s first initial public offering in more than a year isn’t enough to bring her back to the $3.2 trillion equity market.
Hong Kong Exchange Fund reported an investment income of HK$75.9 billion ($9.8 billion) last year, the second-lowest in five years, according to a statement posted on the Hong Kong Monetary Authority website.
Hong Kong stocks are poised to gain in 2014, with the Hang Seng Index climbing to a five-year high on a stronger global economy and steady growth in China as it pushes forward with policy changes, according to strategists.
Hong Kong’s property market is still in danger of overheating and a rise in interest rates would “indisputably” affect the city, Norman Chan, chief executive of the Hong Kong Monetary Authority said today.
Hong Kong dwellings from one-bedroom apartments to 5,000 square-foot (465 square-meter) houses are on offer at discounts of as much as 20 percent as developers brace for a plunge in prices, which have more than doubled since 2009.
Chu Kin-lan has already shuttered six of 11 offices of her Hong Kong real estate agency, whose Chinese name translates as Precious Prosperity, and let go half of her 70 employees amid the city’s toughest curbs on home buying in its history. The worst pain may be still to come.
Yuan settlement of trade between Hong Kong and China more than doubled to 7.2 billion yuan ($1.05 billion) in May, compared with as much as 3 billion yuan in both March and April, the Hong Kong Monetary Authority said.