The new share index named The Hang Seng Tech Index was launched recently, and officially went live last Monday. It is home to some of Asia’s major tech firms such as Alibaba, JD.com and Tencent.
The top 30 tech companies located in Hong Kong will be listed, making a trade into the regions’ brightest tech stars that much easier.
With the current uncertainty surrounding Chinese tech firms within the US, the most dire example of this being that of Huawei, and more recently TikTok, many Chinese and Hong Kong located firms are exploring different listing options. By choosing to access International capital via listings on China and Hong Kong indexes, the tech giants of Asia are now shunning US stock market listings. This will allow local companies access to foreign capital without the intrusion from the US.
The Hang Seng Tech Index is more specialised and hopes to move away from the Hang Seng Index which is dominated by more traditional banking, and energy firms etc. The Hang Seng Tech Index will focus on larger tech companies that have their hands in e-commerce, fintech, and any other online related companies.
Big Asian IPOs to come
The Ant Group, a fintech company responsible for Alipay, which is the affiliate arm to the very successful Alibaba will use the Hong Kong and Shanghai indexes for its initial public offering and then moving onto the Hang Seng Tech Index. The IPO of Ant Group being offered exclusively within the Asian markets shows China’s caution with the US. Tensions between the two have increased recently with the closure of consulates in both Chengdu and Texas.
The Hang Seng Tech Index aims to rival the US NASDAQ, similar to China’s Star market and with its recent release, it should make waves among the worldwide trading scene.
With the continued confidence and growth behind tech stocks globally, the prized tech giants of Hong Kong definitely make this one index to keep an eye on.
Have we woken up to the stock market in 2021 with a full economic recovery well under way and a Coronavirus vaccine being administered to the many?
With a shifted focus on the global recovery from the Coronavirus pandemic, the post Memorial Day weekend markets has been strong and has us asking the question if investors are already looking at 2021 markets and building this in to stocks today.
Starting the post bank holiday weekend with all 3 key U.S. indexes up alongside those of the UK and most of Asia investor sentiment is continuing down a bullish path.
The Dow is fairing best of the US indexes making gains of more than 2 % and time of writing and this just seems a far cry away from the current economic data we are looking at.
The current economic data is still gloomy. Unemployment is at 14.7%, which is the worst since the Great Depression and almost 20 million jobs in the US have been lost due to the pandemic from the low levels experienced prior. Will these jobs return as industry kicks into gear?
There is a broadly similar pattern worldwide but the investor sentiment is taking every positive in the current market conditions and running with it so we may still be in 2020 but stock markets are very much already in 2021.
Strategists have linked the strength of the markets this week to investors looking at the ‘inevitable’ global recovery in 2021, but are they jumping the gun, and being too optimistic of the current global situation and ignoring the signs?
With so many of the variables still vastly unknown and consumer sentiment still heavily dampened, we may be moving too far into bullish territory for our liking with even the 2021 picture hazy at this point in time.
The key London index of top 100 firms closed 4.29% up or almost 250 points on a day where investor sentiment reached the best level in months.
With economies around the world re-opening (even in this tentative phase), traders have taken been taking the opportunity to enjoy some positivity amidst the pandemic and pushed markets up on a busy Monday trading.
Supplementing the easing of restrictions, we have also seen positive indications coming from Moderna surrounding their vaccine candidate that has pushed their share price up more than 26% today at the time of writing and some rumblings from the Fed that they have more weaponry at their disposal to support the Worlds’ largest economy if they need it.
Markets are thoroughly enjoying every piece of good news at the moment and the reactions and volatility seen during the COVID-19 pandemic have been at levels we have not seen for many a year.
This columnist feels it is safe to say, knuckle down for a bumpy ride, this is one roller-coaster that is not yet close to letting you off.
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