{"id":73835,"date":"2023-10-18T01:37:24","date_gmt":"2023-10-18T05:37:24","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/hong-kongs-stock-market-is-withering-china-is-the-problem\/"},"modified":"2023-10-18T01:37:27","modified_gmt":"2023-10-18T05:37:27","slug":"hong-kongs-stock-market-is-withering-china-is-the-problem","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=73835","title":{"rendered":"Hong Kong\u2019s Stock Market Is Withering. China is the Problem."},"content":{"rendered":"<div id=\"js-article__body\" itemprop=\"articleBody\" data-sbid=\"WP-BAR-0000768951\">\n<div data-layout=\"wrap\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          wrap\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--wrap\n    article__inset--lead\n  \"><\/p>\n<p>        <!-- eventually when we know what this card will be we can change it and leave this one --><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-wrap\n        article__inset__image\n      \" itemscope=\"\" itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<\/figure><\/div>\n<p>As Hong Kong\u2019s shriveling stock market continues to shed billions in liquidity and trading volumes fall, even the bears are wondering if things have hit bottom.<\/p>\n<p>Until recently, the city\u2019s exchange had been one of the premiere stock markets in the world. In seven of the last 14 years, it was the top destination globally for initial public offerings. This year, listings have hit a 20-year low, with only 42 newly public firms raising $3.13 billion in the first nine months so far.<\/p>\n<div class=\"paywall\">\n<p>The reluctance among companies is due in part to the anemic secondary market, analysts said, with the benchmark<br \/>\n        Hang Seng<br \/>\n       Index nearly hitting a one-year low earlier this month, and trading volume surpassing a one-year low. <\/p>\n<p>Hong Hao, chief economist for Shanghai-based hedge fund Grow Investment, told <em>Barron\u2019s <\/em>this was normally a sign that things should be bottoming out. But he is anxious about mainland China\u2019s property industry, whose firms are mostly listed on the Hong Kong Exchange. It could take a decade to fix the sector, he said, for the simple reason that China built far too many homes needed to house its population.<\/p>\n<p>\u201cDespite the government\u2019s efforts to roll out support measures for the property sector, a sustainable recovery has yet to be seen,\u201d Hang Seng Bank wrote in a recent research note.<\/p>\n<p>China\u2019s property crisis is just one example of pain in the country\u2019s economy that is spilling over into Hong Kong\u2019s market. China\u2019s overall economy continues to defy rebound predictions, and its tensions with the U.S. and unpredictable regulatory rules have made foreign investors and firms nervous.<\/p>\n<p>Foreign fund managers have to contend with the possibility of being forced to sell as the Biden administration\u2019s investment restrictions intensify in the lucrative tech space or even into other sectors.<\/p>\n<p>Despite little to show in actual policy, Beijing has shown signs it feels the pinch of weakened foreign sentiment and political tensions.<\/p>\n<p>\u201cChina is studying the ease of foreign stake limits in Chinese firms,\u201d Ministry of Commerce spokesman He Yadong said last week. \u201cChina is looking forward to working with the United States to create a fair and stable business environment for bilateral business cooperation.\u201d<\/p>\n<p>Regardless, the economy seems to be haunting Hong Kong.<\/p>\n<p>\u201cIn the last 20 years, Hong Kong has really become sort of a proxy market for foreigners who want to trade in China stocks. So, you know the fact that China is struggling so much right now is making Hong Kong\u2019s already not great situation even worse in terms of trading,\u201d said Doug Young, director of Hong Kong-based Bamboo Works, which provides analysis on Chinese companies listed in the city.<\/p>\n<p>With control of China\u2019s unwieldy economy far out of Hong Kong\u2019s hands, city authorities have turned to doing what they can at the local level. A much-talked-about task force was formed last month to review liquidity and other market problems and offer policy prescriptions.<\/p>\n<p>One step investors are hoping the group will advocate is reducing the so-called stamp duty on stock trades, which was hiked two years ago to 0.13% from 0.1%, making trades on the bourse higher than most of its peer markets globally.<\/p>\n<p>\u201cIf total exemption is not in the cards yet, maybe they can consider halving it or only charging one trading party instead of both,\u201d said Dickie Wong, executive director of research at Kingston Securities, according to a report by Bamboo Works. \u201cThe Hong Kong stock market is bleeding, so the top priority should be stopping the bleeding. As long as trading costs stay high, high-frequency traders will sit on the sidelines.\u201d<\/p>\n<p>Some advocates are pushing for change in the exchange\u2019s rules that don\u2019t allow the purchases of low quantities of shares\u2014even as low as one share, as the U.S. allows. With many firms\u2019 shares trading in the $100 or more range, requiring bulk buys can be prohibitive for smaller investors, which the exchange has said it wants to attract. But there again, barriers are high.<\/p>\n<p>\u201cHong Kong is fairly closed to smaller Western investors. It\u2019s very accessible for the Morgan Stanleys and JPMorgans because they all have offices there, you have to open a registered company, and have a locally registered bank account. It\u2019s possible they\u2019ll make it easier for smaller brokerages to set up accounts,\u201d Young said.<\/p>\n<p>That inaccessibility seems to extend even to mom-and-pop investors in the mainland, where the share of retail trading is much higher than it is in Hong Kong. The Stock Connect system was established years ago to allow mainlanders to buy Hong Kong-listed shares, but the rules are prohibitive to most unprofessional Chinese day traders, with capital requirements and extensive paperwork.<\/p>\n<p>Beijing hair stylist Wu Ming, 34, said he uses an app on his phone to buy stocks in Shanghai and Shenzhen. \u201cBut I have no idea how I would buy anything from the Hong Kong market,\u201d he told <em>Barron\u2019s<\/em>.<\/p>\n<p>Write to editors@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketwatch.com\/articles\/hong-kongs-stock-market-is-withering-china-is-the-problem-6828a6d1?mod=markets\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As Hong Kong\u2019s shriveling stock market continues to shed billions in liquidity and trading volumes fall, even the bears are wondering if things have hit bottom. Until recently, the city\u2019s exchange had been one of the premiere stock markets in the world. In seven of the last 14 years, it was the top destination globally [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":73836,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-73835","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Hong Kong\u2019s Stock Market Is Withering. China is the Problem. | iFintechWorld<\/title>\n<meta name=\"description\" content=\"As Hong Kong\u2019s shriveling stock market continues to shed billions in liquidity and trading volumes fall, even the bears are wondering if things have hit\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=73835\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Hong Kong\u2019s Stock Market Is Withering. China is the Problem. | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"As Hong Kong\u2019s shriveling stock market continues to shed billions in liquidity and trading volumes fall, even the bears are wondering if things have hit\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=73835\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-18T05:37:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-18T05:37:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/10\/1697607445_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=73835#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=73835\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Hong Kong\u2019s Stock Market Is Withering. China is the Problem.\",\"datePublished\":\"2023-10-18T05:37:24+00:00\",\"dateModified\":\"2023-10-18T05:37:27+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=73835\"},\"wordCount\":846,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=73835#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=73835\",\"url\":\"https:\/\/ifintechworld.com\/?p=73835\",\"name\":\"Hong Kong\u2019s Stock Market Is Withering. China is the Problem. | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-10-18T05:37:24+00:00\",\"dateModified\":\"2023-10-18T05:37:27+00:00\",\"description\":\"As Hong Kong\u2019s shriveling stock market continues to shed billions in liquidity and trading volumes fall, even the bears are wondering if things have hit\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=73835#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=73835\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=73835#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Hong Kong\u2019s Stock Market Is Withering. China is the Problem.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Hong Kong\u2019s Stock Market Is Withering. China is the Problem. | iFintechWorld","description":"As Hong Kong\u2019s shriveling stock market continues to shed billions in liquidity and trading volumes fall, even the bears are wondering if things have hit","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=73835","og_locale":"en_US","og_type":"article","og_title":"Hong Kong\u2019s Stock Market Is Withering. China is the Problem. | iFintechWorld","og_description":"As Hong Kong\u2019s shriveling stock market continues to shed billions in liquidity and trading volumes fall, even the bears are wondering if things have hit","og_url":"https:\/\/ifintechworld.com\/?p=73835","og_site_name":"iFintechWorld","article_published_time":"2023-10-18T05:37:24+00:00","article_modified_time":"2023-10-18T05:37:27+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/10\/1697607445_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=73835#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=73835"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Hong Kong\u2019s Stock Market Is Withering. China is the Problem.","datePublished":"2023-10-18T05:37:24+00:00","dateModified":"2023-10-18T05:37:27+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=73835"},"wordCount":846,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=73835#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=73835","url":"https:\/\/ifintechworld.com\/?p=73835","name":"Hong Kong\u2019s Stock Market Is Withering. China is the Problem. | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-10-18T05:37:24+00:00","dateModified":"2023-10-18T05:37:27+00:00","description":"As Hong Kong\u2019s shriveling stock market continues to shed billions in liquidity and trading volumes fall, even the bears are wondering if things have hit","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=73835#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=73835"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=73835#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Hong Kong\u2019s Stock Market Is Withering. China is the Problem."}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/73835","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=73835"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/73835\/revisions"}],"predecessor-version":[{"id":73837,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/73835\/revisions\/73837"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/73836"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=73835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=73835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=73835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}