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Feng shui tips for Hong Kong stocks: strong returns for property, transport, renewables and gaming

The Hang Seng Index could peak in July after a flattish start and then pull back modestly, but could still end the year higher, says CLSA

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“In general, our Rooster index predicts fiery returns for gaming, transport and renewables for the overall year,” said Jeffrey Tong, senior research associate for CLSA.
Laura He

The Year of the Rooster, which starts on January 28, could bring positive returns for the Hang Seng Index and see a particular strength in the property, transport, renewable energy and gaming sectors, as well as China plays, according to Wednesday’s feng shui tips by Hong Kong-based brokerage firm CLSA.

It’s CLSA 23rd Feng Shui Index, a tongue-in-cheek play on the influences of the Chinese zodiac on Hong Kong stocks.

Feng shui is popular in east Asia, as many people seek feng shui masters for advice on issues ranging from health and family, to career and wealth.

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In Hong Kong, CLSA’s Feng Shui Index is regarded by many investors as one of the two most important informal indicators of Hong Kong stocks.

Cherry Ma (Left), senior investment analyst and Jeffrey Tong, senior research associate, launch the CLSA Feng Shui Index 2017. Photo: SCMP
Cherry Ma (Left), senior investment analyst and Jeffrey Tong, senior research associate, launch the CLSA Feng Shui Index 2017. Photo: SCMP
The other indicator is the “Ting Hai effect”, a strange stock market phenomenon that the Hang Seng Index often sells off when a movie or television show starring Hong Kong actor Adam Cheng is aired.
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The effect was named after Cheng’s character in a 1992 television drama where he played the primary antagonist who shorted Hong Kong stocks.

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