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Hong Kong’s actions have surpassed their continental companions by the largest margin in almost two decades, since money is thrown from China due to concerns about the domestic economy and enthusiasm for the technological actions of the territory.
The Hang Seng reference index has increased by 16.4 percent this year compared to a 1.2 percent decrease in the CSI 300 index of Continental China, the higher year of higher performance to date in Spray 2008.
The rally has been promoted by the emergence of Deepseek, the new Chinese company that states that artificial intelligence progresses much less computer power than US rivals, which has encouraged the appetite of investors due to technology stocks that are quoted in Hong.
The actions of the territory, which collapsed more strongly from the actions of Thanland after the announcement of the “Day of Liberation” rate of the president of the United States, in April, also helped to relax tensions in the United States/China’s commercial war.
The rally occurs when continental money flows to Hong Kong at record levels.
“Most strong performance this year of Hong Kong has been driven by flows to the south [from the mainland]”Said James Wang, head of the Variable Income Strategy of China in UBS.
“Much of that has been promoted by the trade of AI,” he added, pointing out the high proportion of AI actions in Hong Kong than the continent.
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Hong Kong’s superior performance also “voice of fundamental differences in market composition,” said Wei Li, head of multi -cast investments for China in BNP Paribas.
“The heavy weighting of the Hang Seng index towards the global liquid sectors, such as technology and finance, has allowed it to capitalize on the idiot pivot of the Federal Reserve and the appetite renewed by Chinese technological actions.”
Chinese technology companies such as Tencent and Alibaba appear in Hong Kong and the United States, but not on the continent. Alibaba was first available for continental investors in September after the company improved its list in Hong Kong.
A meeting between Chinese President Xi Jinping and the country’s technology companies in February was also considered positive for Continental and Hong Kong’s stocks, but participulates for the latter.
“Investors feel that the Government is giving green light to the technological sector to grow again,” said Tai Hui, Asia Market Chief Protection in JPMorgan Asset Management.
China’s economy has been affected by the collapse in the real estate market and the commercial war with the US, which has helped the higher performance of Hong Kong.
“In general, it has a bone concern that the domestic economy in China is weak,” said Andrew Tiltton, chief economist of Asia and Pacific and ER Economic Research Chief in Goldman Sachs.
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It is likely that Hong Kong will benefit from any movement outside the rent variable to other markets and more fed features in the second half of the year, JPMorgan’s Hui said.
“Hong Kong is gathering capital of both Chinese investors and international investors,” since it is easier for foreign investors to buy shares in the city of Thanland, Hui added.
International money flows to Hong Kong seems to be short -term investors, such as coverage funds, instead of market participants in the longer term, such as pension funds, according to the UBS Wang.
“I would like it to be a large influx of long -standing money that still returns to the Variable Income Market of China,” he added. “Investors have burned their legs for quite some time in China.”
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