China clearance sale on now!

Chief Investment Officer and founder of Aitken Investment Management
Print This Post A A A

Substantial outflows from emerging market ETFs, driven by US dollar strength, have triggered large and relentless selling in the largest index weightings in Hong Kong (Chinese equities). Fears of a “trade war” have also weighed on China sentiment.

The Hang Seng China Enterprises Index (HSCEI) fell 7.6% in June, while the Chinese mainland benchmark, the Shanghai Composite Index (SHCOMP) fell 8%. From mid-January peak both indices are now down over 20%, triggering a technical “bear market”.

It has been a brutal and indiscriminate technical sell-off in Hong Kong, which has clearly hurt investors, such as myself, who believe in the rise of the Chinese consumer over the mediumterm.

Continue reading on your free trial

Already have an account? Click here to login and continue

Also from this edition