Is City punishing speculators: Hong Kong futures market seems a battlefield
Article Abstract:
The Hong Kong futures market is in a correction phase, as government regulators force speculators out of the stock-exchange. The Hang Seng Index fell by 55.69 points to 7834.40, and closed at 7829.74 on the August 28, 1998 trading day. Stock exchange observers noted that the the Hong Kong Monetary Authority has been selling futures contracts that tracks the Hang Seng Index, resulting in what seem to be a blatant attempt to prop up the exchange. Hong Kong officials defended the action as an attempt to flush out speculators from the market by influencing the short-term interest rates. The action has allowed the Hang Seng to rise by 18% since the start of the intervention activity on Aug 14, 1998.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
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Caught in a guessing game
Article Abstract:
A number of fund managers prefer not to follow Hong Kong Monetary Authority's (HKMA) move of buying blue-chip stocks. HKMA has been acquiring blue-chip stocks to curb speculations in an effort to control currency devaluation in the region. Managers prefer to disengage themselves from HKMA's decision because of the difficulty in making accurate stock valuations during times of government intervention which dictate stock prices. However, other fund managers claim that the government's intervention has not severely affected the buying and selling decisions.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
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Blood on the City's Streets?
Article Abstract:
The stock market of Hong Kong was declared to have suffered a massacre on Oct. 23, 1997, as the stock market's main index dropped by 10% at the end of the day. The development caused professional investors in Hong Kong to fear that the country may be the next economy to suffer the currency crisis that is prevalent in Asia. Some investors, however, were more optimistic of the situation, citing that the stock market dip in Hong KOng is only a part of a cycle.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1997
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