Hang Seng Index can hardly maintain its high level without substantial economic support: Simon Lee
The recent high trading volume and extreme volatility of Hong Kong stocks have caught attention. Simon Lee Siu-po, Senior Lecturer of School of Accountancy and Co-director of International Business and Chinese Enterprise program at CUHK Business School, stated today (Oct. 9) that the recent market activity has been intense, with even mainland tourists inquiring about how to open accounts in Hong Kong, leading to "system crashes" at banks and securities firms.
He believes that the Hang Seng Index may rise back above 26,000 points during this upward trend, but even if it reaches that target, it may struggle to maintain that level.
Lee noted that there is a chance for the index to rise above 25,000 points, while the likelihood of reaching 26,000 points is slightly lower, though not impossible. However, he emphasized that the stock market needs substantial economic support.
"Currently, the local dining and retail consumption remains weak, which could lead to a lack of continuity in the stock market, making a significant drop again not surprising."
He further pointed out that this year's retail figures have been disappointing, with four out of the first eight months seeing consumption below HK$30 billion. "Hong Kong is overly reliant on land revenue, has high operating costs, and lacks competitiveness... As long as the government does not address the issue of having overly singular sources of revenue, there will be no significant improvement in the retail market," he said.
Related News:
Comment