Divergence between the Shanghai Composite Index and Hong Kong’s Hang Seng Index is apparent over the last 12 months, with Hong Kong rebounding while Shanghai weakens.
With no major changes in the HKDCNY exchange rate, to me this reflects political and economic instability on the mainland.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
Please do not treat Hong Kong same as Mainland China. Hong Kong has it’s own passport and currency. Even an Australian does not need a visa to enter Hong Kong.
That was not my intention