Hong Kong Shares Closes after Eight Day Winning Streak
As investment from the mainland cools down after an eight day winning streak, shares in Hong Kong has closed down yesterday with the Hang Seng Index down the most in Asia falling by 1 percent with buying using a trade link with Shanghai.
Mainland investors bought around 2.4 billion yuan Monday using the Shanghai Hong Kong stock connect program and around 5.4 billion Friday hitting the 10.5 billion yuan daily quota on Wednesday and Thursday. This underscores a volatile trading environment for global investors that are facing the prospect of mainland investors raging into the market using a different strategy which is more speculative and momentum driven.
Investors are expecting a flood of cash from the mainland to buoy the market in Hong Kong for the coming months, this are considered mutual funds and needs time to set up to use the stock connect program. Even its may hav sounded caution towards the sudden increase that placed the Hang Seng up by 14 percent in the eight days for the first time in more than seven years.