Inventory markets rise and fall, however there are days when the plunge defies gravity. The Hold Seng Index slumped 13.2 per cent on Monday, its worst drop in share phrases because the 1997 Asian monetary disaster. Nevertheless, some brokers are bullish the market will quickly discover a backside and rebound because it has achieved so many occasions up to now.
How dangerous was the droop?
The Hold Seng Index sank 13.2 per cent to 19,828.30, however the decline was far worse than these seen in different Asian markets, which slumped between 4 and eight per cent.
Whereas the decline wiped off the benchmark’s close to 15 per cent achieve within the first quarter, the gauge has misplaced greater than 20 per cent from a current peak, dragging it right into a technical bear market.
The autumn got here after China on Friday imposed a tit-for-tat 34 per cent tariff on US items following US President Donald Trump’s “Liberation Day” package deal on Tuesday in opposition to all its buying and selling companions, together with exports from Hong Kong and China to the US.
“There was pent up promoting strain after a public vacation on Friday in Hong Kong and mainland China,” mentioned lawmaker Robert Lee Wai-wang, who can also be the chairman of Hong Kong-based Grand Finance Group.