For 12 straight days (and 14 of the last 15), Hong Kong’s Hang Seng Index has gone up. That is the longest win streak for the index since its inception in 1969.
Interestingly, Hang Seng has risen non-stop since The Fed hiked rates…
As Bloomberg reports, Linus Yip, a Hong Kong-based strategist with First Shanghai Securities Ltd., said flows into Hong Kong stocks accelerated as moderating interbank rates in the city and in China soothed investor concerns, though he warned the rally’s momentum may wane.
“I don’t expect the index to extend its winning streak as the rally has gone too much, too fast and stocks are overbought,” Yip said. “We would see a more healthy run if there are going to be some corrections along the way.”
And perhaps that flow is about to shift as China changes its FX regime once again…
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