Hang Seng Index 'needs $150b turnover to return to 19,000 mark'

Melody Chen

Local brokerage Bright Smart Securities & Commodities (1428) chief executive Hui Yik-bun expects that the Hang Seng Index could return to the 19,000-point level only if the daily turnover exceeds HK$150 billion.

Yesterday's main board turnover of HK$94.41 billion was HK$55.59 billion short of his HK$150 billion target.

Hui said southbound funds remain a major source of support for Hong Kong stocks amid the lack of fund inflows from overseas. And while mainland markets have halted the release of daily fund-flow data, Hui believes this will have little impact on trading activity.

Hui also called for a single stamp duty - currently paid by both the buyer and seller - on stock transactions, to stimulate trading activity. He also suggested Hong Kong Exchanges and Clearing (0388) implement 24-hour trading for US-related exchange-traded funds, warrants, callable bull/bear contracts and Hong Kong futures to align with US markets.

Bright Smart Securities announced a HK$147 million net profit during the three months ended June 30, up 8 percent from the same period last year.

It also reiterated a proposal that the government implement tax reduction measures to attract foreign investment and talent to return to Hong Kong.