Bloomberg: The MSCI Hong Kong Index slumped as much as 3.5% on Monday in a ninth day of declines, matching the longest streak since the 1997 handover
Bloomberg: Hong Kong business confidence, already strained by the U.S.-China trade war, faces fresh challenges as the street clashes damp spending and deter tourists. The economy contracted more than expected last quarter from the previous three months, with retail sales plunging 6.7% in June from a year earlier, while an IHS Markit purchasing managers’ index fell to the lowest since 2009
Bloomberg: A tumbling yuan is the latest challenge to hit Hong Kong’s equity market. The currency on Monday plunged beyond 7 per dollar for the first time since 2008 amid speculation Beijing was allowing depreciation to counter Trump’s tariff threats
“I would advise investors to tread extra carefully when buying Hong Kong shares,” said Alvin Cheung, Associate Director at Prudential Brokerage. “There could be 300-400 more points on the way down for the HSI. Subsiding fluctuations in the offshore and onshore yuan is now a prerequisite for any kind of stability in stocks.”
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