Down more than 20% in two trading days, and the drop of HK market is greater than the 97 financial crisis already. Many stocks trading below 5x PER and 1xPB. Is it because investors are increasing negative on the China/HK market or largely due to hedge fund rememption? Appreciate any input, thanks!
I can think of many reasons why it’s going down (most exports are going to the US which is not buying a lot) but this magnitude… no.
Very interested if anyone could lend some insight to this situation as well, I’ve been shocked this morning…
hedge funds liquidating to meet margin calls would be my best guess.
Makes sense to me: US H-Funds dumping foreign assets places pressure on those foreign assets while proping up the dollar so mightily. Willy
- Margin Calls. 2. Unwinding of yen carry trades 3. The fact that HK still allows short selling http://www.marketwatch.com/news/story/hang-seng-below-12000-regional/story.aspx?guid={9A530A21-01F9-4DE0-A439-504B07C91216}
You would never guess or know it by watching the very annoying CNBC, but the US equity markets have far outperform the major world indices this year.
HK up 13% today, it feels like casino now investing in Asian.
I’ve gone short dollar. This is no way sustainable.