13 Nov 2017 Can Hong Kong and other stock markets keep climbing high?

HSI has been reaching 29000 points and most investors are waiting for 30000 points given it seems to be stable at 29000 points. However, the performance of stock markets in other countries does not seem as good as Hong Kong and China. Both Japan and Europe markets have been undergoing adjustment period where the NIKKEI 225, DAX and CAP dropped over 1% on 13 Nov. This phenomenon indicates the weakness and investors tend to keep more money for the downward adjustment period.

Despite the weak performance of Japan and Europe markets, the China and Hong Kong markets keep moving upward and attempt to reach a higher level. Recently, the investment amounts through South bound trading have increased which shows the high demand for Hong Kong stocks and provides fuel for HSI to reach a higher level. After reaching 29000 points, HSI is also undergoing adjustment period but the trend is flatter compared to the Japan and Europe Markets. This trend provides huge support for investors of Hong Kong stock market that they could still hold stocks and wait for HSI 30000.

After the astonishing performance of Chine Lit.(772.HK), the IPO market in Hong Kong is getting hotter and attract more laymen to invest. The reasons for investors are not about their profitability but the industries that companies are involved and how famous the fundamental investors are, which definitely show the irrationality of investors. 13 Nov is the listing day of one the most popular stocks with technology and new business background Razer(1337.HK). Usually, newly listing stocks would not close at a price that is lower than the closing price of internal trading, but this is not the case for Razer. Another newly listing stock Crystal Group(2232.HK) even closed below the listing price, which is a very surprised for investors. It is a serious warning for every investor that we should not feel easy but take it serious about the IPO market.

As usual, US market is the most influential indicator towards the global stock markets. Recently, the tax reform policies have been under pressure and are against by some billionaires in US. Hopefully, it the tax reform could be implemented as planned to keep the upper trend of the global stock markets.