Virus, weak economy weigh on Hang Seng

Standard Chartered Hong Kong predicted Hong Kong stocks could drop further due to the coronavirus pandemic and weaker economic data.

Will Leung, head of investment strategy at Standard Chartered Bank (Hong Kong), expects the Hang Seng Index would find its support level at the previous low of 21,300 points as stocks already have a relatively low valuation.

He remained positive about the mid- to long-term performance of Asian stocks.

He forecast that companies may not improve profitability this year, but investors’ hopes on a recovery next year may support the market.

Leung expects the Hong Kong stock market to benefit from easing measures by the mainland government.

The local equity market still recorded over HK$100 billion of turnover per day, which indicates that investors are still trading actively, Leung said.