Hong Kong stocks world’s worst performers in third quarter, as investors lose ‘patience and confidence’ amid protests, trade war
- Hang Seng Index drops 8.6 per cent in third quarter
- Politics ‘a core factor’ weighing on Hong Kong stock market, asset manager says
It has been a tumultuous third quarter for Hong Kong stocks, with protests in the city and flare-ups in the US-China trade war weighing on the market. More importantly, a reversal of this downward spiral is unlikely any time soon.
“The downtrend is not finished, and this is not the bottom” for Hong Kong stocks, said Hong Hao, managing director at Bocom International Holdings in Hong Kong. “There is no clear solution to the social unrest at hand. The market is losing patience and confidence.”
By comparison, the Shanghai Composite Index fared better during this period, falling only 2.5 per cent as sentiment swung between hope and despair, thanks to flare-ups in the trade war and expectations of more policy easing. Technology companies, led by small-capitalisation stocks, stood out, buoyed by a recovery in risk appetite and the start of a new stock board in Shanghai to support home-grown technology start-ups.
In Hong Kong, property developers bore the brunt of a sell-off. New World Development and Wharf Real Estate Investment fell at least 17 per cent, as the protests kept homebuyers at home and forced shops to close.