Hong Kong stocks down a wretched 14 per cent in 2018 – the worst performance in 7 years
- About US$575 billion in market capitalisation was wiped out in 2018
- Stocks rose on last day of trading; markets reopen on Wednesday
Hong Kong stocks dropped 13.6 per cent during 2018 – the worst performance in seven years – despite surging on the last trading day on the back of signals of trade talk progress.
About HK$4.5 trillion (US$575 billion) in market capitalisation was wiped out since the beginning of the year, as worries over the US-China trade war, China’s slowing economy and rising interests rates pushed the market down from an all-time high in January.
Only 12 out of the 50 Hang Seng Index constituents recorded positive returns this year, while the worst performing index member – smartphone audio components maker AAC Technologies, which supplies Apple and Huawei – plummeted by as much as 67 per cent.
Defensive tactics made the utilities the only subindex still in green territory, with a modest 4 per cent gain, while the commerce and industry subindex recorded a 19 per cent loss.
“The market has been troubled by the US-China trade war and many other uncertainties this year,” said Stanley Chan, director of research at Emperor Securities.