Everything – except the temperature – is up.
The stock market is onto its biggest party, with the Hang Seng Index posting gains for the 11th straight session and notching fresh 10-year highs, taking the benchmark past the 31,000 level.
Led by Tencent (0700.HK) and Hong Kong Exchanges and Clearing (0388.HK), this has been the longest bull-run in Hong Kong since October 2012.
The question now is not whether HSI will break its 32,000 high of a decade ago, but when it will hit 40,000 or even higher.
Not impossible, assuming the two big stocks keep going up until they reach what they seem to promise in their stock codes – HK$700 for Tencent and HK$388 in the case of HKEx.
The exciting technology sector is up, so is the traditional and boring banking, property and other sectors.
The old counters are up, so are the new offerings. Right now, all eyes are on C-MER Eye Care Holdings, which has emerged as the city’s hottest IPO in more than a decade after its retail tranche reportedly lured massive oversubscription of 1,557 times.
Oil is up, gold is higher. And so are the global markets. No wonder US President Donald Trump bragged about the record-breaking Dow Jones Index surging 1,000 points in five weeks, its fastest thousand-point move in history.
It is the goldilocks global economy that we never dreamed of, with a moderately growing economy offsetting slowly rising interest rates that kept inflation intact.
And some seemingly bad news also turned out to be good news. As the MSCI prepares to include China’s A-shares into its key indexes in June, there is talk that China may embark on an initiative that could unlock some nearly US$400 billion non-tradable state-owned shares.
With such a big supply on the horizon, investors showed no sign of retreat and instead pushed up equity prices to new highs.
People are looking forward to a market boom in China, where Hong Kong has a special role to play in working for national development and reform, which will in turn help the city become an even more important world finance center.
That will really be good for Hong Kong, and even better for China.
Who knows when the party will end? For now, it seems the summer hangover is still here – and that winter is still far away.
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