People wearing face masks walk past an electronic board displaying the Hang Seng Index price on March 26, 2020. Photo: AP
People wearing face masks walk past an electronic board displaying the Hang Seng Index price on March 26, 2020. Photo: AP

Battered Hang Seng Index trading below book value for third time in 27 years may signal massive rally in Hong Kong stocks

  • The Hang Seng Index traded as low as 0.92 times its net asset value in March, as stock prices dropped below the book values of the 50 constituents
  • When the index’s price-to-book ratio fell below 1 in 1998 and 2016, it rose at least 36 per cent in the following year

People wearing face masks walk past an electronic board displaying the Hang Seng Index price on March 26, 2020. Photo: AP
People wearing face masks walk past an electronic board displaying the Hang Seng Index price on March 26, 2020. Photo: AP
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