STREAMING NOW: Watch Now

Global stocks boom: Hong Kong hits record closing high

Hong Kong is joining the global stock market party.The city's main market index surged to its...

Posted: Jan 16, 2018 12:55 PM
Updated: Jan 16, 2018 12:55 PM

Hong Kong is joining the global stock market party.

The city's main market index surged to its highest ever close on Tuesday. The Hang Seng gained 1.8% to end at 31,904 points, topping its previous closing peak from way back in 2007.

That leaves it just 50 points or so shy of the record high set during a trading day in November 2007.

Hong Kong shares have been on a tear, returning more than 45% in the past 12 months. That's almost double the gains recorded by the S&P 500 in the U.S. over the same period.

Related: U.S. stocks had a banner year in 2017. These markets did even better

The Hong Kong rally has been propelled in part by tech companies like Tencent, which is often referred to as the Chinese equivalent Facebook.

Tencent, which has surged 125% in the past year, is the second-biggest component in the Hang Seng.

"Every time Tencent hits a historical high, it brings up the entire index," said Dickie Wong, research director at Hong Kong broker Kingston Financial. "The nickname for the Hang Seng is now the Tencent index."

Share prices have also been buoyed by renewed optimism over the Chinese economy, and a torrent of money from mainland China flowing into big stocks like bank HSBC, Wong said.

Hong Kong brokers think the Hang Seng's winning streak still has a ways to go.

Douglas Morton, an analyst at money manager Northern Trust Capital Markets, said he expects the momentum to continue through 2018.

Related: Everything's near a record high. Is the market too hot?

He points out that investment flows from mainland China into Hong Kong's market are "surging," while a "robust" Chinese economy is helping to boost corporate earnings.

Kingston's Wong is also positive. He predicts the Hang Seng will hit 35,000 points by the end of this year, about 10% above current levels.

He said Hong Kong shares are much cheaper than they were back in 2007, based on a key earnings metric that many investors use to value stocks.

The possibility of new big tech listings in the city this year, such as smartphone maker Xiaomi, could help sustain enthusiasm, too.

West Lafayette
Clear
79° wxIcon
Hi: 86° Lo: 64°
Feels Like: 80°
Kokomo
Partly Cloudy
80° wxIcon
Hi: 85° Lo: 63°
Feels Like: 80°
Rensselaer
Clear
79° wxIcon
Hi: 85° Lo: 63°
Feels Like: 79°
Fowler
Clear
79° wxIcon
Hi: 87° Lo: 63°
Feels Like: 80°
Williamsport
Clear
81° wxIcon
Hi: 86° Lo: 62°
Feels Like: 81°
Crawfordsville
Clear
79° wxIcon
Hi: 86° Lo: 62°
Feels Like: 79°
Frankfort
Clear
79° wxIcon
Hi: 85° Lo: 62°
Feels Like: 79°
Delphi
Clear
80° wxIcon
Hi: 87° Lo: 64°
Feels Like: 80°
Monticello
Clear
80° wxIcon
Hi: 86° Lo: 66°
Feels Like: 80°
Logansport
Clear
79° wxIcon
Hi: 86° Lo: 62°
Feels Like: 79°
Warm and windy with plenty of sunshine!
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 947918

Reported Deaths: 15377
CountyCasesDeaths
Marion1291181990
Lake635721103
Allen53899761
Hamilton44082449
St. Joseph42122590
Elkhart33803491
Vanderburgh30574449
Tippecanoe26915251
Johnson23727418
Hendricks22410342
Porter21832347
Clark17562231
Madison17492385
Vigo16302285
Monroe14545191
LaPorte14389239
Delaware14183222
Howard13971273
Kosciusko11498135
Hancock10935166
Warrick10737178
Bartholomew10635170
Floyd10514208
Wayne10077226
Grant9213204
Morgan8928160
Boone8463111
Dubois7791123
Dearborn769490
Henry7691133
Noble7466101
Marshall7409128
Cass7219118
Lawrence7026153
Shelby6647111
Jackson661386
Gibson6190107
Harrison609386
Huntington604495
Montgomery5853105
DeKalb581091
Knox5535104
Miami548888
Putnam543268
Clinton537465
Whitley529354
Steuben501768
Wabash488692
Jasper483861
Jefferson474492
Ripley457777
Adams446068
Daviess4231108
Scott409165
Clay394957
White393858
Greene393392
Wells389884
Decatur388797
Fayette378578
Posey362341
Jennings356056
Washington334747
LaGrange325175
Spencer321136
Fountain318455
Randolph317190
Sullivan309449
Owen287064
Starke282864
Fulton280454
Orange277859
Jay257038
Perry254152
Carroll245229
Franklin242838
Rush237030
Vermillion235050
Parke221420
Tipton212055
Pike211740
Blackford170534
Pulaski168551
Crawford147318
Newton145845
Benton143916
Brown135846
Martin130217
Switzerland126910
Warren115616
Union98511
Ohio80511
Unassigned0482

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events