Stocks log another weekly advance as traders await stimulus tonic from Beijing. Chow Tai Fook surges after proposing to reward shareholders with special dividends.
Keeping an underweight position in favour of ‘home bias’ could be a drag on performance, the private bank says. Although China has lagged this year, economic recovery is durable and ‘the tide could be turning.’
Hong Kong stocks gave up their initial gains triggered by an agreement between US lawmakers to raise the US debt ceiling and avert a default, as investors worried about demand conditions in China following downbeat industrial profits data.
Hong Kong stocks dropped as investors are still not convinced about the strength of China’s economic recovery despite a better-than-expected 8.5 per cent jump in exports in April.