Hang Seng grabs sixth slot in world markets

Hong Kong's stock market capitalisation has increased by 58 per cent in the past year - more than any other market - according to figures released yesterday by the Stock Exchange of Hong Kong.

This leaves Hong Kong as the world's sixth-largest market, up from the eighth place it occupied a year ago. At the end of June, capitalisation stood at HK$347.9bn (pounds 27.6bn).

The rankings of the first five largest markets remained unchanged with New York leading the way, followed by Tokyo, London, Frankfurt and Paris. Although the London market was the fastest-growing of the top five, registering a 36 per cent rise in market capitalisation, its rate of growth was below the increase seen in Hong Kong.

The growth in market listings is matched by something of a bull run in the territory. Yet again yesterday the Hong Kong market hit a new high with the Hang Seng Index closing at 16,365, a one day gain of 2.4 per cent in record trade with turnover soaring to HK$28bn.

Much of the excitement in the Hong Kong market is a reflection of Wall Street's seemingly unstoppable gains. The property sector, one of the most influential, has also shaken off the blues generated by expectations of tough government measures to deflate property prices.

Alongside these developments the market has been fuelled by the popularity of so-called red chip stocks, meaning companies with China connections. Much of Hong Kong's market capitalisation growth has come from new listings of mainland Chinese-owned and China-related stocks.

Anthony Miller, president of the merchant bank Asian Investment Partners, reckons that talk about red chips showed "there are some definite signs that a mania is afoot". He sees this sector as an almighty bubble waiting to burst.

Alec Tsui, the chief executive of the Hong Kong exchange, was sensitive to suggestions that the market's growth was mainly attributable to speculative activity. He produced figures which, he said, showed that Hong Kong's market volatility "was similar to other major markets in the world".

Volatility is generally measured by what is known as annualised standard derivation of daily return, the higher the percentage of derivation, the higher the volatility and level of short-term speculative activity. Hong Kong's percentage rose from 1.06 per cent in 1996 to 1.21 per cent in June 1997 against London's 0.68 per cent.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Sales Adviser - OTE £24,500

£22500 - £24500 per annum: Recruitment Genius: Inbound and outbound calls with...

Recruitment Genius: Business Development Executive / Sales - OTE £40,000

£18000 - £40000 per annum: Recruitment Genius: This fast growing Insurance Bro...

Guru Careers: Research Associate / Asset Management Research Analyst

£40 - 45k (DOE) + Benefits: Guru Careers: A Research Associate / Research Anal...

The Green Recruitment Company: Graduate Energy Analyst

£20000 Per Annum: The Green Recruitment Company: Summary: The Green Recruitm...

Day In a Page

Turkey's conflict with Kurdish guerrillas in Iraq can benefit Isis in Syria

Turkey's conflict with Kurdish guerrillas in Iraq can benefit Isis in Syria

Turkish President Erdogan could benefit politically from the targeting of the PKK, says Patrick Cockburn
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn or a return to a Labour government

Our choice is years of Tory rule under Corbyn or a return to a Labour government

Yvette Cooper urged Labour members to 'get serious' about the next general election rather than become 'a protest movement'
Singapore's domestic workers routinely exploited and often abused in the service of rich nationals

Singapore's hidden secret of domestic worker abuse

David Cameron was shown the country's shiniest veneer on his tour. What he didn't see was the army of foreign women who are routinely exploited and often abused in the service of rich nationals
Showdown by Shirley Jackson: A previously unpublished short story from the queen of American Gothic

Showdown, by Shirley Jackson

A previously unpublished short story from the queen of American Gothic
10 best DSLRs

Be sharp! 10 best DSLRs

Up your photography game with a versatile, powerful machine
Solved after 200 years: the mysterious deaths of 3,000 soldiers from Napoleon's army

Solved after 200 years

The mysterious deaths of 3,000 soldiers from Napoleon's army
Every regional power has betrayed the Kurds so Turkish bombing is no surprise

Robert Fisk on the Turkey conflict

Every regional power has betrayed the Kurds so Turkish bombing is no surprise
Investigation into wreck of unidentified submarine found off the coast of Sweden

Sunken sub

Investigation underway into wreck of an unidentified submarine found off the coast of Sweden
Instagram and Facebook have 'totally changed' the way people buy clothes

Age of the selfie

Instagram and Facebook have 'totally changed' the way people buy clothes
Not so square: How BBC's Bloomsbury saga is sexing up the period drama

Not so square

How Virginia Woolf saga is sexing up the BBC period drama
Rio Olympics 2016: The seven teenagers still carrying a torch for our Games hopes

Still carrying the torch

The seven teenagers given our Olympic hopes
The West likes to think that 'civilisation' will defeat Isis, but history suggests otherwise

The West likes to think that 'civilisation' will defeat Isis...

...but history suggests otherwise
The bald truth: How one author's thinning hair made him a Wayne Rooney sympathiser

The bald truth

How thinning hair made me a Wayne Rooney sympathiser
Froome wins second Tour de France after triumphant ride into Paris with Team Sky

Tour de France 2015

Froome rides into Paris to win historic second Tour
Fifteen years ago, Concorde crashed, and a dream died. Today, the desire to travel faster than the speed of sound is growing once again

A new beginning for supersonic flight?

Concorde's successors are in the works 15 years on from the Paris crash