Fed reductions may affect HK stock market: UBS analyst

The Hong Kong stock market will be significantly affected in the next few months by the Federal Reserve's possible reduction in bond-buying in November or December, coupled with the impacts of various policies, said Meng Lei, China equity strategist at UBS.

However, the effect on the A-share market will be limited, as there are fewer internet and education stocks there, and foreign investment accounts for a relatively low proportion of the market, Meng said.

Investors generally have a negative view of the new policies and regulations, Meng said, but added that he  believed that when the fines are officially implemented, the regulatory policy will come to an end. However, investors will still need time to regain their confidence, and the economy may slow down in the second half of the year.