Hong Kong
stocks reach a new historic high
Released
on: September 27, 2007, 3:15 pm
Press
Release Author: Talbot Reese, Inc.
Industry:
Financial
Press
Release Summary: Hong Kong, China. As Hong Kong stocks reach a new
historic high, Venture Capital Firm Talbot and Reese, Inc. analyzes
the reasons for this growth.
Press
Release Body: Following a very volatile last week in August, share
prices on the Hong Kong stock exchange rebounded
to a historic new high on 31 August when the Hang Seng Index
briefly soared to 24,000 points during intra-day trade on that day.
The turnover on that day was HK$113 billion (US$14.48 billion).
At
the time of writing, the Hang Seng Index has since
passed the 24,000 mark. The Hong Kong stock market
has since experienced a re-rating for investors since the gloom
of 2003 when SARS hit Hong Kong and unemployment went to new highs.
A
number of factors have contributed to Hong Kong listed shares hitting
new highs, and these may be attributed as follows:
1.
Global markets becoming more stable from the sub-prime problems
as a result of central banks pumping liquidity into the banking
sector.
2.
China's high economic growth.
3.
China's reform of its state owned enterprises by allowing the
fittest companies to list on the Hong Kong stock exchange.
4.
China allowing private entrepreneurs to list their companies
overseas.
5.
As Hong Kong investors are knowledgeable about Chinese companies,
this influences the choice of listing here.
6.
Investors believing in the China economic growth story and the
emergence of consumer spending power.
7.
Hong Kong is a free market, there is no capital gains tax for
individual investors, no restrictions on movement of capital,
and is a proxy for investing in China.
Another
factor is the recent announcement by the Chinese Government
that it will allow Chinese citizens to invest directly in Hong
Kong shares. Under this measure, Chinese citizens who have
opened an account with the Bank of China in Tianjin
will be allowed to invest directly in Hong Kong shares.
Chinese citizens will have the freedom to invest in some well known
Chinese companies that are currently listed in Hong Kong but not
yet listed in China such as China Mobile (the country's
largest mobile phone company), Petrochina (the
leading Chinese oil company, in which Warren Buffett has
an investment stake), etc. China's citizens can also purchase shares
in Chinese companies (H shares) which are relatively cheaper than
the same A shares that are listed in Shanghai. The initial investment
funds flow has been estimated to be between US$10 to US$50 billion
as a result of this measure known as the "through train"
programme.
If
you or your clients are interested in opening share brokerages accounts
to invest in HK shares, please contact us for details.
Talbot
and Reese, Inc. is well established, with an impressive
record of success and a solid reputation in the financial industry.
Through our extensive experience we give our portfolio companies
the essentials of success: a solid reputation, strong financial
resources, extensive business experience, and a global network of
relationships.
Web
Site: http://www.talbotreese.com
Contact
Details: Talbot and Reese, Inc.
Corporate
Office:
Shinjuku Monolith, 16th Floor,
2-3-1 Nishi-Shinjuku, Shinjuku,
Tokyo 163-0916 Japan
Phone:
+81-3-458-02055
Fax: +81-3-449-65096
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