What Hong Kong stocks will be affected by Britain's announcement of Brexit? The financial manager told you.
Why did Hong Kong stocks plummet so much after Britain left the EU? We must start with the marriage between Hong Kong and Britain. As we all know, Hong Kong was once a British colony. Although/kloc-0 returned to China in 1997, it was deeply influenced by Britain, and its culture and economy still lived in harmony with the West. So, now that Britain has announced its Brexit, which Hong Kong stocks will be affected?
From the analysis of the Hong Kong stock market, there are mainly the following stocks that are easily affected by Brexit:
Hong Kong listed companies with relatively high income in the UK: power industry (48%), Changjiang Infrastructure Group (28%), Hong Kong Stock Exchange (20%), HSBC Holdings (18%) and Lenovo Group (10%).
International banks: HSBC, Standard Chartered.
The stocks with the highest correlation between the stock price and the exchange rate of GBP against USD: Esprit Global, HSBC Holdings, COSCO Pacific, IGG, Power Industry, Changhe, Huarong Resources, VTech Group, Newbird Technology and Hengteng Network. If the pound falls, these stocks will fall the most.
Stocks with the biggest decline in the last month: Regent Pacific, _ Dafu Holdings, Lianya Group, Chinese Real Estate, Yike Holding Group International, Hong Kong Stock Exchange and Changjiang Infrastructure Group.
Finally, Britain's withdrawal from the EU will not only affect Hong Kong's stock market, but also drag down Hong Kong's export market. Pan, chief economist of global market of Hong Kong Trade Development Council, said on June 23 that if Britain leaves the European Union, it will bring a big blow to all aspects of the British mainland. I believe it will drive down the pound, property prices and economic growth, which will indirectly affect Hong Kong's exports, because Britain accounts for 55 billion Hong Kong dollars of Hong Kong's exports, mainly consumer goods such as clothing, watches and toys. If Britain leaves the European Union, it will weaken local consumption desire and will drag down Hong Kong's export performance.