Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Saturday, Feb 22, 2025

An epic year of market events shook China, Hong Kong and Taiwan

An epic year of market events shook China, Hong Kong and Taiwan

China, Hong Kong and Taiwan’s economies were among the first to suffer from the virus pandemic. They were also home to some of the most dramatic events in global financial markets this year.

Take China’s equity market, whose value topped $10 trillion for the first time since the 2015 crash and where a liquor-maker became the country’s most valuable stock. The yuan tested a record low offshore before commencing a rally that some say could take the currency to levels not seen since 1993.

In Hong Kong, colonial stalwart HSBC Holdings PLC fell to its lowest price since 1995 before becoming one of the city’s best trades. Record foreign inflows into Taiwan’s technology shares were so intense that the central bank had to intervene almost daily to rein in its strongest currency in more than two decades.

Here are some of the year’s biggest financial-market events in China, Hong Kong and Taiwan, a region at the forefront of the global recovery.

Comeback currency


Concern over the impact of COVID-19 on China’s economy triggered a slump in the yuan from mid-January. The currency tested its all-time low in offshore trading just four months later. But in the half-year since, it has surged to near the 6.5 mark, with Citigroup Inc. chief China economist Liu Li-gang predicting it could rally past 6 next year — a level it hasn’t breached since 1993. Capital inflows into stocks and bonds are also boosting the yuan, posing a challenge to China’s central bank, which doesn’t want a stronger currency to harm an export-driven recovery.

Ant squashed


Days before Ant Group Co. was due for the biggest stock market debut ever seen, Chinese regulators abruptly halted the $35 billion initial public offering. Many observers concluded that the move was aimed at humbling both the Alibaba Group Holding Ltd. behemoth and its founder, billionaire Jack Ma, who at a Shanghai conference in October criticized China’s state-owned banks. The immediate reaction in the financial market reduced Ma’s fortune by almost $3 billion. Beijing last month also issued rules to root out internet monopolies and began scrutinizing investments in new energy vehicles.

Bust to boom


Resuming trade after an extended Lunar New Year break as the coronavirus outbreak worsened, Chinese equities were hit by a brutal wave of selling in February. More than 3,000 stocks went limit down in their worst day since the 2015 bubble burst. At that point it would have taken a strong stomach to predict that only five months later, China’s recovery in the face of the virus would propel a frenzy that would add $1 trillion to the market’s value in an 8-day period. That rally set the stage for the stock market to finish out the year stronger than it started.

Chinese defaults


A spate of defaults by China’s state-linked firms took investors by surprise in November, after months of support to curb the fallout of the coronavirus helped prevent a wave of payment failures earlier in the year. A focus on state-owned enterprises marks a shift away from private firms to the mammoth state sector — these borrowers dominate the nation’s onshore bond market and were once considered guaranteed to receive a bailout. The historic repricing of risk among weaker-rated SOEs has some investors now seeing 2021 as a potential inflection point for the emergence of a genuine credit risk mechanism in the world’s second-largest bond market.

H.K. markets steady


Beijing’s passing of a sweeping national security law in June elicited global condemnation, but it has been mostly business as usual for markets in the former British colony. While the benchmark Hang Seng Index is down by 6% this year, capital inflows have remained steady and a record number of companies raised $1 billion or more from initial public offerings, including JD Health International Inc.’s $3.5 billion December listing. The Hong Kong dollar has remained strong in the face of economic and political pressure, including when U.S. President Donald Trump aides aired the idea of undermining its peg to the greenback. The city’s de facto central bank undertook a record intervention to prevent the Hong Kong dollar strengthening past the permitted range with its U.S. counterpart.

Taiwan tensions?


Concerns about a possible Chinese military invasion were heightened, but you wouldn’t know it from looking at Taiwan’s markets. Chipmaker Taiwan Semiconductor Manufacturing Co. briefly entered the world’s top 10 companies by market value and its shares are up more than 50% this year. The domestic benchmark stock index has been hitting record highs since July, surpassing the 14,000-point level for the first time in early December. The Taiwan dollar has recently reached its strongest level against the U.S. dollar since 1997, with the central bank apparently shifting from its previous “smoothing” strategy to a managed appreciation.

Shot: HSBC. Chaser: Moutai.


One of the most whiplash-inducing rebounds of the year was HSBC, which ran afoul of U.K. regulators, core investors and Chinese officials and saw its Hong Kong shares lose more than 50% of their value between February and late September. It promptly bounced back as much as 55% on better-than-expected third quarter results and a plan to return to dividend payouts, making it one of Hong Kong’s best-performers in the fourth quarter. And then a moment befitting 2020: baijiu distiller Kweichow Moutai Co Ltd. dethroned Industrial & Commercial Bank of China Ltd. as the biggest mainland stock by market value.

Newsletter

Related Articles

Hong Kong News
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
×