One Stock Shows Hong Kong Market Is Booming. Index Says Not
- Hong Kong exchange operator has seen its shares soar to record
- Hang Seng Index is near the cheapest ever versus world index
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Two of the most straightforward ways to bet on the future of Hong Kong’s stock market are telling opposing stories.
Take the Hang Seng Index, the city’s 50-year-old benchmark that’s down 10% for the year. On a price-to-earnings basis it’s near the cheapest on record relative to MSCI Inc.’s index of global shares. Last month it clocked up the worst quarterly drop versus the S&P 500 Index since the Asian financial crisis in 1998. Three-fifths of its members have lost 16% or more this year.