Stocks are charting a second day of winning in the Year of the Dragon after a wobbly start to trading. Funds are in no rush to chase the rally, despite Beijing’s recent intervention, a Bank of America survey shows.
China will have to do more to convince stock investors about the sustainability of the market rally spurred by recent rescue measures, fund managers Pictet and Saxo say.
‘Hong Kong stocks posted positive returns in the past four Years of the Dragon,’ says Financial Secretary Paul Chan during a ceremony to mark the first trading day of Lunar New Year. He also cited an improving Chinese economy and potential rate cuts.
Hong Kong stocks limped into the new lunar year as the market erased most of the intervention-driven rally this week. The Hang Seng Index ended the Year of the Rabbit in misery with a record 29 per cent loss.