Things could not go any better for Hong Kong’s stock market in 2017.
Forget all the doom and gloom you hear about the future of Hong Kong. The Hang Seng Index closed at almost 30,000 (29,919.15, to be exact) and became this year’s best-performing stock market.
Hurrah! The HSI’s 8,000-point gain is also a record high. While the blue-chip index achieved a 36 percent gain this year, Shanghai only managed a growth of less than 6 percent while Shenzhen wallowed in a 4 percent loss.
As it turned out, September was the only month with a negative return for the HSI. This was also the case of the Dow Jones, which trailed Hang Seng Index with a respectable 29 percent gain.
The HSI outperformed other major asset classes, according to Central Asset Investments chief investment officer Eddie Tam, who pointed out that the only better investments were bitcoin and other cryptocurrencies.
Most people in Hong Kong should have felt at least 18 percent richer, based on the returns of their pensions this year.
That’s because the five big cap stocks in Hong Kong and the darlings of fund managers – Tencent Holdings, AIA Group, HSBC, Ping An Insurance and Industrial and Commercial Bank of China –altogether produced a 64 percent return, according to Hong Kong Economic Journal.
Five blue-chip stocks doubled in value – led by Geely Automobile Holdings (260 percent) and followed by Country Garden, Sunny Optical, Tencent and Ping An Insurance.
But not all technology stocks enjoyed a good ride. China Mobile and other telecom stocks had a lackluster year.
But the current momentum that pushed Hong Kong stocks to new peaks is likely to see the HSI go even higher and break the record of 31,958 points it set in October 2007.
Well, all good things do come to an end. But before that, let’s enjoy every moment of it.
Now, on behalf of EJ Insight, thank you for being with us through good times and bad. Wishing you an even better year with more fun to come in 2018, the Year of the Dog!
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