The Hang Seng Index: Buy Or Sell?

The Hang Seng Index operates as a free-float, cap-weighted index with a wide selection of prized companies from the Hong Kong Stock Exchange. There are 4 indices within the Hang Seng and these include: Properties, Commerce & Industry, Utilities and Finance. The index was opened with a base level of 100 over 50 years ago. Naturally, this is one of many Asian stock markets that have been crushed by the Chinese equities meltdown of August and September. When the Shanghai Composite Index and the Shenzhen Index plunged recently, the Hang Seng came in for some serious tap.

The UBS Group AG revised its target level for the Hang Seng  25% lower  on the back of weak economic data and steep declines in tourism to the territory. In terms of performance, the Hang Seng has featured as the world’s worst performer last quarter. Traders have been placing put options on many Asian equities markets since Black Monday in China. The reverberations of that market downturn continue to this day, despite a slight uptick in economic performance.

Updated Key China Metrics

·         GDP per capita of  $3,866

·         Unemployment Rate of 4.04%

·         Inflation Rate of 2%

·         CPI of 102

·         Interest Rate of 4.6%

·         Balance of Trade $60.2 billion

·         Non-Manufacturing PMI of 53.4

·         Consumer Confidence of 104

·         Retail Sales (Year-on-Year) 10.8

·         Business Confidence 49.8