Tuesday 19 August 2014

HSI at 6-years highest with oversea inflows inflating with new government policies



Hong Kong stocks traded higher in the morning trade today, as the benchmark index, Hang Seng Index HSI, gained 0.07 percent rising to 25,009. It was a sunny morning in HK markets as HSI opened above 25,000 setting a new record after the last one set on 22 May 2008.
Forex

Foreign investors are buying Chinese companies' stock from Hong Kong (HK) markets as yuan traded shares are starting among the most profitable deals pumped up by under-valuation of equity shares.

China's new government set in new policies and reforms aiming to attract oversea investors which has brought in billions of dollars through HK stock exchange. Market researchers are betting on the new policies as they said, "After four years of tough trades, Chinese companies opened up the buy option with market reforms attracting investors to gain on cheaper values."

Analyst are expecting some switching from investors from the stocks who are not performing or under-performing as compared to the opportunity presented to them from the expanding Chinese economy.  

Exchange Traded Funds (ETFs) qualifying with the Renminbi Qualified Foreign Institutional Investor (RQFII) grew recording final investments worth $1.33 billion (equals to 8.2 billion yuan) in July. It is the highest record set in through ETFs since the last record of 2012 in December.

Foreign investments floated in China through CSOP FTSE China A50 ETF. The flashing top positioned overseas attractor gained 6.8 billion yuan in its portfolio. The second star which received 2.4 billion yuan is Bosera FTSE China A50 Index ETF.

Yuan added 2 percent over its 18-months lowest point last set in April 2014. This recovery of the value of currency market a reviving markets which strengthened the market base further.

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