The U.S. has considered delisting Chinese Stocks especially the IPOs from the stock market. Also, it is limiting its investments to China. This would mean a shift of capital flow to Hong Kong.
The Budweiser APAC IPO was priced at the lower end of it’s anticipated range of HK$27 to HK$30.
Hang Seng Index(26,041.93 points) and Hang Seng China Enterprises Index(10,212.27 points) both gained 0.4% at closing on Thursday.
Hong Kong Stocks down at 3-week low due to political instability and after trade talks exchanged between Washington and Beijing. The talks diminished hopes of relaxed trade practices as reported by Reuters.
Amidst trade talks between China-US in order to cool down the after effects of the tariff hikes, Hong Kong shares were losing value since the last 6 days.
The economic situation in Hong Kong is worsening even further. This time the trade council in the city said that there will be a shrink in exports this year.
Sa Sa and Chow Sang has been down by 23 per cent and 24.5 per cent since mid of July. The luxury sales come mainly from Mainland Chinese tourists.
The lending rate has been cut down to 2.25 per cent (25 basis points) by the Hong Kong Monetary Authority (HKMA) as reported by South China Morning Post.
The strength of Hong Kong’s institutions are eroding, as suggested by rating agencies.
It has become too expensive to short sell in present-day Hong Kong financial market.
