Hong Kong stocks: what money managers at BNP Paribas, Haitong and Schroders say about recent market actions

Name: Tightened regulations among key trends shaping China’s internet in 2021
Uploaded: 2022-01-10T06:21:37.000Z
Duration: 9 min 40 s
Description: Tightened regulations among key trends shaping China’s internet in 2021

Look for an upswing in China’s growth this year, as policies like the ones aimed at ‘common prosperity’ are implemented less aggressively than before: BNP

No need for pessimism, according to Haitong International and Soochow Securities

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People cross a road in the central business district in Beijing on December 16, 2021. Photo: AFP

Cheryl Heng

Published: 2:21pm, 10 Jan 2022

Hong Kong’s stock market is leaving behind a choppy first week of the new year. As China’s securities watchdog on Friday vowed to ensure stability, investors have regained confidence amid cheap valuations to send the tech benchmark to its best run in a month.

Whether the regulatory traumas that have rocked stocks in recent months will persist in the new year remains to be seen. Many expect the authorities to turn pro-growth to avoid deepening a painful economic slowdown.

Here is a compilation of asset managers’ comments, gathered last week, of where Hong Kong’s markets will go this year and how they viewed recent corporate and industry developments.

BNP Paribas Asset Management: reforms even in bad times

Last year made clear Beijing’s shift in gears to pursue quality over quantity in terms of growth. But it came at an economic cost. Growth slowed to 4.9 per cent in the third quarter, compared with 7.9 per cent in the previous quarter.

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Tightened regulations among key trends shaping China’s internet in 2021

Policy tightening in the property sector has led to defaults, most notably by China Evergrande Group. The embattled giant suspended trading last week after it was ordered to demolish dozens of apartment buildings.