21 November 2018

HKEx sees subdued market amid China concerns

Hong Kong Exchanges and Clearing Ltd. (HKEx, 00388.HK) said Wednesday that market sentiment is unlikely to improve significantly in the near term due to uncertainties surrounding China’s economy.

The subdued investor mood will weigh on trading activity and keep in check the average daily turnover of the Hong Kong market, the local bourse operator said.

“Given the outlook — you guys know better than we do — what investors are thinking about China these days,” said Romnesh Lamba, co-head of global markets at HKEx. “Probably we won’t see a huge uplift in market sentiment anytime soon.”

At a post-results briefing, Lamba also attributed weaker growth in daily turnover to structural issues such as the absence of high-frequency trading and mutual market access on the exchange, which allows more fund flows across the border.

Lamba said average daily turnover on the Hong Kong bourse has fallen about 12 year on year since the beginning of 2014. Nevertheless, there was “decent momentum” compared to the fourth quarter last year, he said.

– Contact the reporter at [email protected]


EJ Insight reporter

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