February 15, 2018 – Hong Kong shares closed out the Lunar New Year in buoyant fashion, completing their biggest three-day gain since October 2015.
The Hang Seng Index rose 2 percent after US traders shook off inflation concerns overnight, taking its three-day advance to 5.6 percent. The H-share index also climbed for a third day.
Equity trading in Hong Kong ended at noon and will resume on Feb. 20, while Chinese onshore markets are closed through Feb. 21. Equity bulls had the last say of the year in a city that has hosted both the world’s worst selloffs and steepest rallies in recent weeks.
The Hang Seng Index posted a 33 percent gain in the Year of the Rooster, rounding off one of its longest bull markets with some of the most volatile trading since China’s equity bubble burst in 2015.
Hong Kong’s stocks clocked in eight record highs in January before bearing the brunt of a global selloff. If history is any guide, investors may face another wild ride in the Year of the Dog.
With a price-to-earnings ratio of just 11.9, Hong Kong shares still trade at a discount to mainland markets. Chinese investors typically take advantage of a stock trading link to buy the city’s cheaper shares. Southbound trading was last open Monday, before the Hang Seng Index staged its rebound.