Hang Seng index jumps 20% from January low, heads for bull market

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Hong Kong’s benchmark equity index headed for a technical bull market as stocks in the city extended this month’s stellar rebound sparked by overseas inflows.

The Hang Seng Index rose as much as 1.7% on Monday, taking its advance from a January 22 low to over 20%. A close at these levels will see the gauge meet the definition of a bull market, joining a cohort of other indexes in China and Hong Kong that have reached such a milestone in recent weeks.

Stocks in Hong Kong are among the best performers globally in April, having rallied on the back of strong inflows from mainland Chinese investors, who according to some strategists are looking to diversify their currency exposure amid continued depreciation pressure on the yuan.

There are also signs that foreign funds are rotating money away from expensive technology stocks in the US and elsewhere to snap up Chinese internet names, which command a high weighting on Hong Kong’s equity benchmark.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow