Chart of the day: Bulls not stopping for Hong Kong stocks

The bull run-up on Hong Kong’s stocks has already lasted 21 months and the momentum seems to be sustainable for now. The Hang Seng Index is still the cheapest on a valuation basis among the world’s major indices, including the S&P 500 Index, China’s Shanghai Composite and Europe’s Stoxx 600 Index. The 51-member Hang Seng Index benchmark is valued at 13.4 times estimated earnings for this year after a 68 per cent advance since February 2016. A further 6.6 per cent gain would take the HSI to the level equalling its record set on October 30, 2007. At that time, it traded at about 22 times profit, according to data compiled by Bloomberg.