Hang Seng Index: What investors should know before 2019 ends

With the worst of the political protests hopefully behind the city, and US and China’s improving trade relations, Hong Kong’s main index is seemingly moving toward a strong finish.

The last two weeks have been fruitful for Hong Kong benchmark Hang Seng Index.

The East Asian stock index continues to push higher, as it gained 0.96% week-on-week, amid positive global political and economic developments.

There was a small dip of 0.65% to below 27,550 at the start of this week that was a cause for concern, but a speedy recovery to 27,950 on Friday morning has since provided some relief.

Learn how to trade indices like the Hang Seng Index with an IG demo account

What to expect next week for investors

And there are now more reasons to celebrate for investors, not least because the holiday season is upon us, but because the HSI is expected to rise even more as 2019 draws to a close.

That’s according to Alan Li, a portfolio manager at local private wealth management firm, Atta Capital. He told South China Morning Post that the index could very well break the 28,000 mark – a level it hasn’t seen since July.

‘Following the trade deal and Fed rate decision last week, most of the recent uncertainty has been released,’ he said. ‘Chasing laggards and window dressing expectations are boosting market sentiment.’

Window dressing is a strategy that investment managers use toward the end of a quarter or the year to spruce up the appearance of a financial statement or product.

On a broader regional view, IG Asia Market Strategist Jingyi Pan said that while markets are set to recover in the coming months, there are still ‘some risks…as the two sides remain at work in sorting out their differences’.

Any re-escalation of the tariffs war or the carrying forth of the trade war to other fronts, such as financial, would jeopardise Asian markets’ performance, including the Hang Seng, she added.

A last hurrah in the form of the Santa Rally effect - when stock markets post positive results in the run up to Christmas and New Year - is also not out of the question for Hong Kong financial markets.

Increasingly upbeat stocks

In terms of individual company stocks, technology and financial services are also experiencing marked improvements in share value, despite the US-China trade deal euphoria slowly dying down.

On the technology front, China tech giant Tencent Holdings Limited is up almost 4.4% this week, while Alibaba Group Holding Limited hit a new peak of HK$208.40 on Friday morning, 20 December.

Among financial services companies as of 18 December, AIA Group rose 2.24%, Bank of China Hong Kong gained 1.9%, China Life Insurance added 0.97%, Industrial and Commercial Bank of China added 0.71%, and Ping An Insurance with 0.50%.

The Hang Seng Index is trading at 27,799.55 as of Friday, 20 December, 3.30PM.

You can practise trading indices like the Hang Seng Index and more, with an IG demo account now

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100, 1.2 on the Germany 30, and 0.4 on the US 500
  • Unrivalled 24-hour pricing

See opportunity on an index?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from one point on the FTSE 100, 1.2 on the Germany 30, and 0.4 on the US 500
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.