Mainland cash chasing Hong Kong stocks after record year

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The inflows have been so strong that the central bank had to weaken the local currency. FMTNews China HongKong Market Stocks

HONG KONG: In a year disrupted by a global pandemic, political upheaval and abrupt setbacks for some of Hong Kong’s biggest stocks, investors point to one constant as to why 2021 looks brighter: relentless levels of money coming in.

The inflows have been so strong that Hong Kong’s de-facto central bank had to repeatedly step in to weaken the local currency. “We believe the Chinese government is resolved to return stability in Hong Kong and would continue to support Hong Kong as its key financial hub,” said Sean Taylor, Asia Pacific chief investment officer at DWS Group.

The retail euphoria remained unfettered even after Ant’s listing failure left investors in shock – with one deal as much as 422 times oversubscribed. Hong Kong is also the brokerage’s most preferred market in Asia when it comes to 5G, saying per-user revenue growth has been the highest in the region.

 

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