Exclusive | Hong Kong fund managers eye Middle East, Southeast Asia investors amid market rally
With rising turnover on the Hong Kong stock exchange, the timing is right for fund managers to go out to explore new business opportunities, Sam Yu of HKIFA says
Hong Kong-based international fund houses are exploring sales of equity products to investors in the Middle East and Southeast Asia, as the recent market rally in the city has piqued their interest, according to the newly elected chairman of the fund industry body.
“With the recent improved market sentiment, and by leveraging Hong Kong’s role as the superconnector between China and the world, the timing is right for Hong Kong fund managers to go out to explore new business opportunities in the Middle East and Southeast Asia,” Sam Yu Chun-sing of the Hong Kong Investment Funds Association (HKIFA) said in an exclusive interview with the Post.
Hong Kong’s stock market has been volatile recently, with the benchmark Hang Seng Index slumping 9.4 per cent on Tuesday as investors took profits, after rallying more than 20 per cent since the US interest rate cut on September 18 and China’s announcement of a package of stimulus measures to reboot the economy. The market rose 3 per cent on Thursday.
Yu said even in such a volatile market, it is important to look at Hong Kong’s stock market activity, pointing to the record daily turnover of HK$620 billion (US$80 billion) on Tuesday, compared with a daily average of HK$113 billion for the first nine months of this year.
“The high turnover [shows] there are many more market participants and capital inflows potentially from various jurisdictions globally,” he said. “The interest-rate cut and the central government’s stimulus policies to boost the economy have bolstered investor confidence on the outlook for Hong Kong and mainland stocks. International investors are now paying more attention to Hong Kong and China.”
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Wild swings in Hong Kong and mainland China stock markets
The HKIFA has 106 members, including some of the world’s biggest fund houses such as JPMorgan Chase, Fidelity and Barings. Yu is also the head of compliance for Asia-Pacific ex-Japan at Barings Asia.
