The global financial crisis and the rise of trade protectionism appeared to influence the position of Hong Kong exports. According to the data provided by the Valuation and Rating Department current economical instability hits residential rents and prices which have shown the biggest drop since last month.
Land Holdings of Hong Kong, being recognized as the greatest landlord, suffered the first considerable annual net loss in the process of slumping property markets wake in Singapore.
As it was reported, the unstable economic situation damaged the state property sector resulting in the lowest percent index of occupied flats for the last 30 years.
Since last week the country faced the growth of mainland stocks in heavy trade. The slowdown in business observed in China is to be broken with the help of staff operations performed by CLSA, Investment bank of Asia.
According to the analytical data provided on March, 4, 2009, the shares of the company Hutchison Telecommunications International increased by 11.8 percent due to the financial operations of Macau and Hong Kong. Commercial and Industrial China bank being the greatest lender according to the market capital, managed to touch base with other partner shareholders for the purpose of fostering their allegiance. (Trading Markets, 2009)
HKEx, or Hong Kong Exchanges center, is planning to establish the control mechanism of percentage-based price in CAS for market securities; the mechanism adoption provided changes to the banking system functioning controlling the trading system and prices limit. (HKEx News Release, 2009)
According to the data of China stocks the shares of Hong Kong dropped 2.4 percent globally influencing the bank stocks of the country. Nevertheless the Hang Seng Index rebalancing appeared to show lower percent in comparison with China Construction Bank which rose 1.5 percent. As it was stated by the DBS Vickers director, Peter Lai, “With the Dow and Tokyo market at record lows, there is no way Hong Kong can stay unaffected.” (Ullatil, 2009) The movements of Hong Kong funds cannot be controlled because of critical state situation and world economical instability. The hit of financial stocks in the country, such as BOC Hong Kong and East Asia bank, experienced the fall of index by almost 5 percent.
As it was underlined by the Ample Finance director, Alex Wong, “You just have to look at how Wells Fargo, Bank of America and Barclays performed on Thursday to understand why banking stocks are down today. Fear has gripped the sector.” (Ullatil, 2009)
The last two weeks appeared to play a crucial role in the global markets development as this period brought the market value loss of about 50 percent impacting the turnover of the states. But the gold miners companies of China experienced the rise of price due to the increase of the world demand and international price on the metal by 2 percent.
One more point to discuss relates the shares of the oil producers falling 3.2 percent because of the price drop worldwide. Such companies as PetroChina and Sinopec Corp suffered the drop 2.7 and 3.1 percent.
The report provided the changes of Hong Kong Stock market allowing evaluating the shifts on the international level caused by financial and economic instability all over the world. The movements of funds and shares position show global internal changes in Hong Kong economy and industrial development as well as in banking system.
References
HKEx News Release: HKEx plans to Add a Price Control Mechanism to its Closing Auction Session. 2009.
Hong Kong Newspaper Highlights – Trading Markets. South China Morning Post. 2009.
Ullatil, Parvathy. HK Shares down 2.4 pct; HSBC Falls 24 pct on Week. 2009.