Hong Kong Signals Serious Bearishness

L.Desjardins submits:

Last week's stocks performance in Hong Kong is a vote of non confidence in the short term direction of markets. Hong Kong was down 4.5% on the week but Shanghai took the rate hike in stride and closed up for the third week in a row. The Hang Seng Index had it worst week in more than nine months with all sectors down. Its weakness may be an indication of investors, especially foreigners, wariness in regards to Chinese stocks.

INDICES 1 week 4 weeks YTD Hang Seng Index -4.5% -6.0% -0.9% HS China Enterprises -4.9% -8.1% -4.8% FTSE/Xinhua A50 0.7% 0.0% 0.7% Shanghai Composite 1.0% 1.3% 0.7% CSI 300 1.4% 0.9% -0.2% US ETFs EWH -4.7% -6.3% -1.3% FXI -2.8% -6.4% -3.3% PGJ -0.6% -0.6% 3.7%

On Thursday for instance, stocks that were up in Shanghai were down in Hong Kong. On the same day Petrochina (PTR) announced it was

Complete Story