Hang Seng Plummets Toward Recent Lows While Shanghai Falters

Wednesday’s close in Both Hong Kong and Shanghai reflected the reality of growth slowing beyond the 7% strongly held target.

shanghai hang seng

All sectors were hit as all but 4 of the Hang Seng constituents crashed.  Hardest hit were financials and energy-related but no sector was safe with the exception of the traditional utility haven which included CLP holdings, HK 2 and Power Assets Holdings, HK 6, with minor increases.  Insurance companies moved downward in tandem on news that China would restrict overseas insurance sales  to quash attempts to move money out of China beyond allowed limits.  Beating them all to the bottom, however, was Lenovo, HK 992, falling over 10% thanks to a a 3 month year on year revenue drop of 8% primarily from  a 12% drop in computer revenue and smartphone revenue 4% decline.  Industry wide computer sales have been weak and the Motorola late 2014 purchase has done little to increase it’s smartphone market share which is hovering at around 5%.

Hang Seng Movers Daily

Thanks to reportedly extraordinary efforts, the yuan held relatively steady.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s