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August 28, 2007
You are on the invidual archive page of Smashing. Click Simon World weblog for the main page.
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Smashing
"Records smashed" reports The Standard, a newspaper who not co-incidentally largely relies on the level of the Hang Seng for its own financial health. The Hang Seng has managed to go from 19000 back up to 23000 in the space of a week, largely thanks to news that China is to allow the hordes of mainlanders (previously despised, now welcomed with open arms) and their wallets to spend as freely on Hong Kong shares as they do on their own. The only problem is a small one...the Tianjin authorities haven't quite got the paper work sorted out yet. This troubling detail means the Hong Kong market has managed to go up in anticipation of the hordes rather than because of them. And no-one has yet asked an obvious question: why is it that the Bank of China branch in Tianjin is the only one on the mainland that gets to run the "Hong Kong stock direct train" scheme? Do the shareholders of ICBC or Bank of Communications really mind that BoC got this supposed golden goose? Don't look for any of this to make any sense. posted by Simon on 08.28.07 at 02:02 PM in the Hong Kong economy category.
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Comments:
Isn't it a general feature of markets to move in anticipation rather in fruition, like certain pleasures one can think of? And what's with the "direct train" cliché? If the mainland's commitment to its "rail-as-backbone" policy is as empty a mantra as its SAR's, then the metaphor may turn out to particularly apposite if and when things grind to a halt.
The Weekend Standard no longer exists as of last week. So, they can't have been making too much money on these records. posted by: cheaprs on 09.21.07 at 10:29 PM [permalink] |
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