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Straits Times 3,116.17 -8.28 -0.27%
Hang Seng 26,503.93 -17.92 -0.07%
Dow Jones 27,024.80 +237.44 +0.89%
Shanghai Composite 2,991.05 -16.84 -0.56%
Asian Markets Pranced To New Heights Amid Record Transaction Amounts
By: Peter Ng
Articles (81) Profile

Apart from the woes of an interest rate hike, Western economies were rather muted in the past 2 weeks as the S&P 500 index remained under the 2,100 mark.

Meanwhile, the theme has shifted to Asia, particularly China and Hong Kong, as the Shanghai Stock Exchange Composite index rose in excess of 700 points compared to a month ago, before retreating to the 3,900 territory.

The Hang Seng index surged past 26,000 points, fuelled by record Southbound trading volumes pouring into the Hong Kong Stock Exchange. This was the first time that the daily transaction limit of Rmb10.5 billion was hit since the inception of Shanghai-Hong Kong Stock Connect. The leap in transaction volumes were attributed mainly to 2 intertwined factors, including initiatives from the Chinese government to permit mutual funds to invest via the stock connect, as well as, valuation gap between the “A” and “H” shares listed on the Shanghai Stock Exchange and Hong Kong Stock Exchange respectively.

Noteworthy developments in Asia shed light on the newly founded Asian Infrastructure Investment Bank (AIIB), where the world’s second largest economy will spearhead the entity as a vehicle to fund infrastructure development projects across the world.

Despite resistance faced for its setup, the AIIB has 30 countries approved as founding members of the entity. An official list of founding members will be released by 15 Apr-15, cited by China’s Foreign Ministry.

While the Straits Times index stood flattish and lacked a general direction since the start of April, however, the silence was broken as a research report was released by Muddy Waters on 9 Apr-15, denoting its “sell” position on Noble Group.

Backed by a strong interest in investments, Peter's research spans across a range of industries, with his focus placed on companies listed on the SGX.

Please click here for more information about this author.


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