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Daniel Ren

Deb Price

TGIF traders!
The Shanghai Composite Index snapped a three-day losing streak. The Hang Seng Index closed above 27,000 for the first time since mid-September.
Catch up on the day's action below.
And if you would like to receive the Live Stocks Blog each morning via email, shoot Deb an email at deb.price@scmp.com.
-- Daniel Ren in Shanghai and Deb Price in Hong Kong 


Stocks Blog: Soho China, BeiGene soar, while ESR Cayman also gains on first day of trading

BeiGene researchers work in a laboratory in Beijing. Photo: Bloomberg

Empty shops at Harbour City. Tourism in Hong Kong has plunged amid the anti-government protests. Photo: Linda Lew

Business

Markets

Chinese listed companies’ profits increased in first nine months, exchanges say
Mainland IPO debutants jump


Chinese listed companies’ profits increased in first nine months, exchanges say


Stocks

China stock market

Hong Kong Stock Exchange

HSBC

Tencent

Kweichow Moutai

Trade war

Hong Kong property

Hong Kong protests

Live

Hong Kong’s three largest banks are lowering their prime rates for the first time in 11 years to support local businesses. The cuts are likely to renew pressure on their margins at an awkward time, as the city’s economy shrank deeper than expected and slipped into its first technical recession in a decade.
HSBC, Standard Chartered Bank and Bank of China (Hong Kong), the city’s three currency issuers, will all cut their best lending rate by 12.5 basis points, taking their cues from a quarter-point cut in base lending rate by the local monetary authority.
The best rate at HSBC and Bank of China will stand at 5 per cent, while the rate at Standard Chartered will drop to 5.25 per cent, according to announcements on Thursday. Savings rate on US dollar and local currency deposits will be slashed to 0.001 per cent, putting the city a whisker’s width from zero interest rate.
That leaves little room for any of the big banks to further ease rates without hurting their books in one of their better-performing markets, analysts said. While Hong Kong and Greater China provide the biggest source of income, growth in the region has tapered amid the onslaught of US-China trade war. China’s economy grew at the slowest pace on record last quarter, while Hong Kong has slipped into a technical recession amid anti-government protests.
Read full story by Enoch Yiu here.


ICYMI: Hong Kong's big 3 banks lower prime rates

Here's what we are watching this morning:
US Monday markets/ What futures foretell
--The S&P 500 dipped 0.3 per cent, the Nasdaq slipped 0.14 per cent and the Dow Jones Industrial Average dropped 0.52 per cent.
-- Hong Kong futures inched up 0.04 per cent lower, while the FTSE China A50 futures was up 0.08 per cent
IPO debuts: ESR Cayman Limited (1821 HK), Beijing Baolande Software (688058 CH), NCS Testing Technology (300797 CH)
Economic statistics/Central Bank action: Caixin China PMI manufacturing index to be published in the morning


Morning guidance 

China's blockchain technology frenzy following President Xi Jinping's endorsement last week has raised concerns over the potential for fraud as well as duplicate or worthless projects.
The technology, which is virtually unknown to the general public and is in early stages of application in China, underlies bitcoin and other cryptocurrencies, many of which are still banned in China.
However, Xi said China should treat blockchain as a vital technology that would allow the country to master other areas of the digital economy.
The endorsement from China’s leader prompted a surge in the price of bitcoin, while in China, companies and institutions involved with the development of blockchain applications were celebrating Xi’s speech as a blessing for the industry. One blockchain society even officially proposed that China should designate October 24, the day Xi delivered his endorsement, as “Blockchain Day." Analysts are now wary that Xi’s endorsement could lead to interest groups ranging from local officials to tech start-ups and cryptocurrency investors to misuse and distort the technology to further their own agendas.
This could lead to financial bubbles, fraud and subsequently, social unrest. Precedents for this include the 2015 stock market rout and the collapse of some high-profile peer-to-peer (P2P) lending platforms that wiped out millions of retail investors, and brought thousands to the streets looking for their money back.”
Read full story here.    


B﻿lockchain endorsement from China’s Xi Jinping could lead to fraud and speculation, technology analysts warn

The Chinese companies trading on the onshore markets posted earnings increases in the first three quarters of the year, with those on the Nasdaq-styled new technology board reporting faster growth, according to the Shanghai and Shenzhen stock exchanges. 
The 1,495 companies on Shanghai bourse’s main board registered an 8.06 per cent increase in net incomes from a year earlier, while the growth rate for the 40 companies on the Science and Technology Innovation Board, or the Star market, was 40 per cent, the exchange said. 
Profits for the 2,187 Shenzhen-listed companies grew 2.79 per cent from a year ago in the span, according to a statement by the bourse. While agricultural, defense and non-banking financial companies led profit growth among Shenzhen-traded companies, media companies, automakers and light-industry manufactures were under pressure, the statement said.
-- Zhang Shidong    


Chinese listed companies’ profits increased in first nine months, exchanges say

Shanghai Pudong Development Bank (600000 CH) raised 50 billion yuan (US$7.1 billion) selling bonds that can be converted into equities, the lender said in an exchange statement.
It is the biggest-ever convertible bond sales in China. 
Existing shareholders were placed with 26.4 billion yuan of the bonds, while public investors purchased 23.5 billion yuan of the debts. Five co-underwriters including Citic Securities and Guotai Junan Securities bought the remainder of the offering, the statement said.
-- Zhang Shidong    


Shanghai Pudong Bank completes China’s biggest-ever convertible bond offering

Chicken-breeding Fujian Sunner Development (002299 CH) said its second-biggest shareholder KKR Poultry Investment plans to sell up to 6 per cent stake in the company, according to an exchange statement. 
KKR Poultry, which has an 11 per cent interest in the chicken breeder, will sell as many as 74.4 million shares within the following six months, the statement said. Shenzhen-traded shares of Fujian Sunner had surged 74 per cent through Thursday this year, as rising pork prices boost alternative demand for chicken.
-- Zhang Shidong    


Chicken breeder Fujian Sunner says No. 2 shareholder to cut stakes

The life insurance unit of Ping An Insurance Group (601318 CH) had sold 12.8 million shares, or a 1 per cent stake, in Yunnan Baiyao Group (000538 CH) through October 30 since July, the make of traditional Chinese medicine said in an exchange statement. 
Ping An Insurance said in July that it would sell up to 3 per cent stake in Yunnan Baiyai through either block trade or the secondary market, it said. After the stake reduction, Ping An holds a 5.85 per cent interest in the company, the statement said.
-- Zhang Shidong    


Yunnan Baiyao has 1 per cent stake sold by Ping An

China Citic Bank (998 HK) received the approval from the regulator overseeing the banking and insurance industries to raise as much as 40 billion yuan (US$5.7 billion) selling undated capital bonds, according to an exchange statement. The lender will use the proceeds to replenish the tier-one capital, it said.
-- Zhang Shidong    


Citic Bank approve to sell 40 billion yuan of bonds

Tourist arrivals fell 34.2 per cent in Hong Kong in September, according to government data. The number of visitors from mainland China declined 35 per cent in September, compared with a year ago.
The number of short-haul non-mainland China travellers – including those from Taiwan, South Korea, Japan, Malaysia and Singapore – recorded the deepest decline, at 35.5 per cent, while mainland China visitor numbers plunged 35 per cent.
-- Eugene Tang and Denise Tsang    


ICYMI: Tourist arrivals plunge in September

Hong Kong officially slipped into a technical recession as the economy shrank 3.2 per cent in the third quarter from the previous quarter amid the US-China trade war and ongoing anti-government protests.
The decline between July and September followed a 0.4 per cent drop in the second quarter, marking a fall in two consecutive quarters, the Census and Statistics Department revealed on Thursday.
The preliminary gross domestic product (GDP) shrank 2.9 per cent in the third quarter year on year, the slowest in a decade.
“The figure is alarming and is far worse than what I had initially expected – a 0-1 per cent fall,” ING Bank Greater China economist Iris Pang said.
“The economic situation will worsen as a bad cycle is forming from lay-offs of staff from restaurants, shops and trading companies, which will in turn hurt consumer spending and fuel more lay-offs.”
Read full story by Denise Tsang here.    


ICYMI: Hong Kong slips into recession 

The China Securities Regulatory Commission approved five new share offerings on Thursday after the IPO applicants passed through hearings by the review committee.
The five companies included Chengdu Urban Fuel Gas, Zhejiang Jianye Chemecial Industry, Zhuhai Bojay Electronics, Anhui Actblue and Tianjin Ruixin Technology.
In China, nearly all IPO shares would surge on the first day of trading amid investors’ belief that new shares are good buys.
-- Daniel Ren


CSRC approves five IPOs

ESR Cayman (1821 HK), the largest logistics real-estate platform in the Asia-Pacific region, debuted on the main board of the Hong Kong Stock Exchange today.
The share rose 4.8 per cent to HK$17.60, from its initial public offering price of HK$ 16.8. The company aims to raise about HK$ 4.4 billion. The shares were oversubscribed by 2.22 times before the debut.
It has been bouncing since the open and is trading at HK$17.66.
This public offering is the comeback of the listing plan put off in June when Hong Kong was swirled by the large-scale anti-government protests.
ESR Cayman plays an important role in developing and managing logistics properties to support retailers, manufacturers and e-commerce companies in the Asia-Pacific region. The majority of the assets held by the company are in China where the e-commerce boom fuels the demand for logistics and warehouse.
The big shareholders of ESR Cayman include Warburg Pincus, Redwood Entities, and SK. In addition, ESR Cayman secured a cornerstone investment agreement with the Canadian pension fund Ontario Municipal Employees Retirement System, which has subscribed 9 per cent of the share capital.
ESR Cayman will use 71.7 per cent of the raised money for repaying the notes and preferred stocks issued in 2016, whereas the rest of the money will be used for developing the business of logistics properties.
ESR Cayman Limited (code 1821) started trading on Hong Kong Stock Exchange today. @SCMPNews @scmpbusiness @HKEXGroup pic.twitter.com/xYomzQJwMT
  — Snow Xia (@SnowXia05) November 1, 2019
 
-- Snow Xia


ESR Cayman jumps at open on debut in Hong Kong 

The Hang Seng Index is see-sawing in early trading, and was last up 0.07 per cent to 26,925.67.
AAC Technologies (2018), which derives nearly half of its revenue from Apple, rose 0.1 to HK$51.05. 
Sunny Optical (2382 HK), which makes optical lenses, fell 0.7 per cent to HK$125.90.
PetroChina (857 HK) fell 0.8 per cent to HK3.82. It dropped Thursday after reporting its quarterly profit dropped 58 per cent. 
HSBC (5 HK) slipped about 0.1 per cent to HK$59.45, and Standard Chartered (2888 HK) fell 1.5 per cent to HK$70.85. 
Among property developers, Hang Lung Properties (101 HK), one of the city's largest builders of shopping centres, rose 0.3 per cent to HK$17.32, while Sun Hung Kai Properties (16 HK), the city's largest listed developer by value, slipped 0.4 per cent to HK$118.40.
-- Deb Price    


Hang Seng see-saws in early trading 

Two companies that made their trading debuts on the mainland saw their shares jump after trading opened.
NCS Testing Technology (300797 CH) started at 5.4 yuan, 20 per cent higher than its offering price of 4.5 yuan.
Shares continued to jump to 5.94 yuan in morning trading, up 32 per cent from the IPO price.
Star Market-listed Beijing Baolande Software (688058 CH) opened at 99 yuan, up 24.8 per cent from its IPO price of 79.3 yuan.
They traded at 117 yuan in morning trading, 47.5 per cent higher than the offering price.
-- Daniel Ren 


Mainland IPO debutants jump

The Shanghai Composite Index slipped 0.3 per cent to 2,920 in early trading.
Here's how some stocks heavily traded by northbound investors are starting the day: 
-- Kweichow Moutai (600519 CH)  was flat at 1,179.99  yuan.
-- Ping An Insurance (601318 CH)  inched up 0.1 per cent to 88.24 yuan.
-- Jiangsu Hengrui Medicine (600276 CH)  rose 0.9 per cent to 91.68 yuan.
-- Shanghai International Airport (600009 CH) fell 1.5 per cent to 75.12 yuan.
-- Deb Price 


Shanghai Composite slips in early trading 

Soho China (410HK), one of China’s largest commercial property companies, soared 7.5 per cent to HK$2.88 after media reports it plans to sell most of its commercial property in China for as much as US$8 billion.
Bloomberg  reported earlier that Soho China is considering selling at least eight office towers in Beijing and Shanghai, citing people familiar with the matter.
In an exchange filing Thursday, Soho China acknowledged the buzz but didn't answer the question.
Soho China said in the morning that “it can confirm that it is not aware of any information relating to the sale of Group assets which would require to be announced.” 
If it does this, it would become an overseas investment operation.
-- Deb Price    


Soho China soars after media reports it will sell most of its commercial property

The Hang Seng is on track to post its second day of gains, rising 0.3 per cent to 26,977.30 in early trading. 
The leading declining sector is health care, while information technology and utilities are the top gainers.
WH Group (288 HK) is one of the top early morning gainers on the benchmark, rising 1.9 per cent to HK$8.48, after the world's largest pork processor fell 1.8 per cent Thursday on profit taking after five straight days of gains. 
Sunny Optical (2382 HK) rose 1.9 per cent to HK$129.20.
Leading losses on the Hang Seng is CSPC Pharmaceutical (1093 HK), which fell 2.2 per cent to HK$19.70. Investors have been piling into the stock on faith in its pipeline of medicines, sending the stock up on Wednesday and Thursday to 52-week highs, reaching HK$20.15. It has had six days of gains. 
-- Deb Price    


WH Group, Sunny Optical gaining in early trading 

China’s Star Market-listed firms reported a 40 per cent profit rise for the first three quarters of this year.
According to Securities Times, the 40 companies trading on the mainland’s Nasdaq-style technology board earned a combined 8.58 billion yuan in January to September.
Total revenue climbed 14 per cent to 69.1 billion yuan.
Star Market was ordered into existence by Chinese President Xi Jinping last November.
It started trading on July 22 with a first batch of 25 firms making debuts at the Shanghai Stock Exchange.
-- Daniel Ren


Star Market companies post 40 per cent profit rise

Hong Kong and Nasdaq-listed cancer drugs developer BeiGene (6160 HK) surged as much as 30.2 per cent in Hong Kong after American biotech major Amgen agreed to buy BeiGene shares equivalent to a 20.5 per cent stake for US$2.7 billion, Beijing-based BeiGene said in a filing to Hong Kong's bourse this morning.
The shares sale price of US$174.85 per American depository share is 36 per cent higher than the average price in 30 trading days prior to the agreement. The pair also inked an agreement to collaborate on the commercialisation of products in mainland China and develop new drugs. The shares purchase deal is subject to approval by BeiGene's independent shareholders.
BeiGene is now ahead 29 per cent at HK$107.80.
The deal, if completed as expected in the first quarter of next year, would see Amgen become BeiGene's largest shareholder.
In a separate statement, as part of the collaboration, Amgen said Beigene will commercialise three of Amgen's drugs in China, which treat osteoporosis and  two types of blood cancer known as multiple myeloma and acute lymphoblastic leukemia.
The pair will share profits and losses equally.
The osteoporosis drug was launched in China in September this year, while the other two are in phase three clinical trials -- the last phase before marketing approval can generally be granted. The two firms will also work together to advance 20 drugs in Amgen's oncology pipeline in China and globally, with BeiGene contributing up to US$1.25 billion toward the effort, Amgen said.
-- Eric Ng


BeiGene surges as much as 30 per cent on Amgen stake move

Outlook for China’s small factories rose to its highest level in nearly three years in October, according to findings from a private survey released on Friday, even as larger manufacturers in the country continued to suffer amid the escalating trade war with the United States and overall sluggish global demand.
The Caixin/Markit manufacturing purchasing managers’ index (PMI) improved for a fourth straight month to 51.7 in October, its highest since reaching the same level in February 2017, and from 51.4 in September. The figure beat the expected 51.0 based on a poll compiled by Bloomberg. A reading above 50 indicates expansion, while below 50 points to contraction.
On Thursday, China’s official manufacturing PMI, released by the National Bureau of Statistics (NBS), stood at 49.3 in October, down from 49.8 in September and below the expectation in a Bloomberg survey of analysts for an unchanged reading. The October figure was the lowest since hitting 49.2 in February.
The Caixin PMI mainly tracks 500 smaller private factories, while the official index focuses on 3,000 larger manufacturers.
“A divergence in the official and unofficial PMIs makes it unusually difficult to gauge how the economy performed at the start of Q4,” said Julian Evans-Pritchard, senior China economist at Capital Economics.
Read full story by Karen Yeung here. 


China’s small factories post best outlook for nearly three years, Caixin PMI shows

Blockchain stocks traded on the mainland capped a three-day losing streak, with the East China Money index tracking 172 A-share companies that develop or use the technology gaining 0.66 per cent to 778.51 at the close of morning trade.
The index surged 8.1 per cent on Monday, with 107 of the component companies hitting the daily 10 per cent trading cap, driven by President Xi Jinping’s call for more investment and development in blockchain technology.
It lost 6.7 per cent from Tuesday to Thursday.
Shunya International Brand Consulting (300612 CH) and Easy Visible Supply Chain Management (600093 CH) led the gains in the morning with both surging to the 10 per cent daily upper limit.   
-- Daniel Ren


Blockchain stocks rising again in China after three-day losing streak 

Bank of America has again cut its 2019 forecast for Hong Kong’s economy, which city officials said entered a “technical recession” in the third quarter.
In a research note dated Thursday, Bank of America Merrill Lynch economists Miao Ouyang and Helen Qiao cut their full-year forecast for gross domestic product growth to negative 2.1 per cent, from their previous estimate of negative 0.1 per cent.
They maintained their 2020 growth forecast at 0.4 per cent.
“As a small open economy, Hong Kong is particularly vulnerable to external demand weakness, given its reliance on tourism and dependence on the Chinese economy,” the economists said. “Many sectors (tourism, retail, hotel, catering and transportation) have already taken a blow from the months of disruptions to business. Not to mention that high level of uncertainty also significantly impaired business confidence and suppressed investment demand.”
The forecast cut came as months of protests and civil unrest have cut into the city’s economy, discouraging travellers from visiting the city and residents from eating out or shopping for luxury goods.
On Thursday, a government spokesman said Hong Kong’s GDP shrank by 3.2 per cent in the third quarter on a seasonally adjusted basis when compared with the second quarter.
-- Chad Bray 


Bank of America cuts forecast for Hong Kong's 2019 GDP to negative 2.1 per cent  

Interest has picked up for Chinese mobile game giant CMGE (302 HK), which started trading on the main board of Hong Kong’s stock exchange Thursday.
The shares slipped 0.7 per cent to HK$2.81 at the open Thursday from the public offering price of HK$ 2.83. They ended gaining 2.1 per cent for the day.
Today it has shot up 16.3 per cent to HK$3.36. 
-- Deb Price    


Chinese mobile game giant CMGE shares soaring 

The Hang Seng Index is up 0.5 per cent to 27,051.90 points in afternoon trading.
It hasn't been able to break through and close above 27,000 since mid-September.
On September 16, it traded at 27,124.55.
Its high for the year was on April 9, when it was at 30,157.49.
 
-- Deb Price 


Hang Seng testing 27,000 level 

IPO debutant NCS Testing Technology (300797 CH), which opened 20 per cent higher on the ChiNext market in the morning, hit the daily ceiling for new stocks of 44 per cent in afternoon trading.
The testing instrument development firm started at 5.4 yuan in the morning before it jumped to 6.48 yuan, 44 per cent higher than the offering price of 4.5 yuan.
On the ChiNext market, IPO shares are subject to a 44 per cent daily trading cap on the first trading day.
Star Market-listed Beijing Baolande Software (688058 CH), the other IPO debutant on the mainland today, advanced 27.4 per cent to 101 yuan in afternoon trading.
-- Daniel Ren


Testing instrument maker hit first-day ceiling

Brokerage stocks were among the top gainers today after they showed stellar earnings growth so far this year.
Shanghai Chinafortune (600621 CH) jumped 5.7 per cent to 14.75 yuan in afternoon trading, while First Capital Securities (002797 CH) climbed 4.2 per cent to 6.95 yuan
Mainland brokerages posted a profit jump of 65 per cent for the first nine months of this year.
The 36 brokerage firms traded on the A-share market eked out total profits of 79.7 billion yuan between January and September, according to Securities Times. Revenue grew 47.5 per cent to 274.4 billion yuan.
  -- Daniel Ren


Brokerages among top gainers in mainland trading

The Shanghai Composite Index snapped a three-day losing streak, finishing the day ahead by 1 per cent at 2,958.
Every sector recorded gains, led by real estate. About four times more stocks gained than lost ground, with 1,173 rising, 295 declining and 63 unchanged. 
The CSI 300 Index of large cap stocks traded in Shanghai and Shenzhen rose 1.7 per cent to 3,952.39.
Here's how some stocks heavily traded by northbound investors performed:
-- Kweichow Moutai (600519 CH)  inched up 0.4 per cent to 1,185  yuan.
-- Ping An Insurance (601318 CH)  rose 2.2 per cent to 90.04 yuan.
-- Jiangsu Hengrui Medicine (600276 CH)  increased 1.8 per cent to 92.50 yuan.
-- Shanghai International Airport (600009 CH) eked out a tiny 0.01 per cent gain to close at 76.26 yuan.
-- Deb Price    


Shanghai snaps three-day losing streak 

The Hang Seng Index closed above 27,000, ending the day ahead by  0.7 per cent at 27,100.76.
It hadn't been able to break through that resistance since mid-September. 
Of its 50 constituent members, 37 closed with gains, while only eight lost ground and five were unchanged.
Sunny Optical (2382 HK) posted its third straight day  of gains, rising 2 per cent to HK$129.40, making it the top percentage gainer on the Hang Seng of the day. Zhongtai International  reinstated coverage of the lens maker with a buy rating and price target of HK$146.90.
The three heavyweights on the Hang Seng -- insurance and finance services provider  AIA Group (1299 HK), HSBC (5 HK) and Chinese social and gaming giant Tencent (700 HK) -- closed ahead.
AIA rose 1.3 per cent to HK$79.50, HSBC rose 0.2 per cent to HK$59.60, and Tencent inched up 0.2 per cent to HK$321.60.
Other stocks of note:
BeiGene (6160) shot up 31.9 per cent to HK$110. American biotech major Amgen agreed to buy BeiGene shares equivalent to a 20.5 per cent stake for US$2.7 billion, BeiGene said in an exchange filing. BeiGene is a Hong Kong and Nasdaq-listed cancer drugs developer. 
Chinese mobile game giant CMGE (302 HK), which started trading on the main board of Hong Kong’s stock exchange Thursday, picked up the pace Friday. On Thursday, it gained 2.1 per cent. But today, it jumped 20.5 per cent to HK$3.48.
Soho China (410HK), one of China’s largest commercial property companies, jumped 10.8 per cent to HK$2.97, following media reports earlier in the week that it plans to sell most of its commercial property in China for as much as US$8 billion.
ESR Cayman (1821 HK), the largest logistics real-estate platform in the Asia-Pacific region, netted 5.4 per cent in gains to HK$17.70 on its first day of trading.
  -- Deb Price 


Hang Seng closes above 27,000, with heavyweights AIA, HSBC and Tencent finishing ahead  

Home appliance makers got a boost from growing investor confidence that their earnings will improve amid government incentives.
Gree Electric Appliances (000651 CH), China’s largest air-conditioner maker, jumped 8.65 per cent to 63.78 yuan and Midea Group (000333 CH) shot up 6.1 per cent to 58.89 yuan.
-- Daniel Ren 


Home appliance makers get boost of investor confidence 

Private manufacturing expansion buoyed investor sentiment in both the mainland and Hong Kong, said Louis M.K. Tse, managing director of VC Asset Management. 
The Shenzhen Component Index increased 1.73 per cent, the Shanghai Composite Index rose 1 per cent and Hang Seng Index rose 0.7 per cent.
The biggest reason was the rise of Caixin China General Manufacturing purchasing managers’ index (PMI), Tse said.
The Caixin PMI that measures the performance of small and medium enterprises in China hit 51.7 in October, the highest since February 2017, while the official PMI of big companies this month was 49.9.
“The Chinese government has implemented a lot of measures to help those [small and medium] companies. We see this Caixin PMI outperformed the one reported for the large state companies. I think that should be the main reason,” said Tse.
In addition, biotech and property sectors are fueling the market, too. 
“Those drugmakers are doing quite well because of the new drugs. And we see the third quarter result for the state company and the bank, the property markets are not doing badly. So that helped the [Hang Seng Index] break the barrier of 27,000, which we tried so many times, but failed to do so.”
“So the next major barrier is the 250-day moving average, which is 27,360. But the most important thing is that after breaking 27,400, I think there would be a down trend."
While the Hang Seng ended Friday ahead, the city is wrestling with a recession. The official data released Thursday showed that Hong Kong fell into recession in the third quarter.
“We don't expect retail, tourism, hotels to do well. ” said Tse.
“Don’t worry about the technical recession...I simply ignore it because all the retailers, hotels, and stores are not in the Hang Seng’s main index. So [these sectors] going down doesn’t affect the index much. The only thing affects the index is those property developers.”
The Hong Kong Monetary Authority lowered the interest rate Thursday, making mortgages cheaper.
-- Snow Xia    
