The tensions between the Sino-American relationship is falling through the cracks, and the fight for the hegemony of the world order is becoming intertwined with all aspects of the macrocosm, including the financial market.
The Chinese influence is apparent in the world financial market, and it hoped to quell some of the US influence by introducing the NASDAQ-version of the stock index. Hong Kong has officially been the platform for the novel Hang Seng TECH Index. However, the start could have been better, as the outcome fell short of expectations.
The index encompasses the 30 largest tech firms within the city districts, which includes tech giants like Alibaba (BABA). The initial peak was 2.2% in early trade and was at one point a top performer in the region. But the reversal happened, which leads to the course of going down to 0.8%.
The index was created by the original local stock market index Hang Seng Index, one of the biggest there is.
HSI said the focus was “increasing level of importance in Hong Kong as companies including Alibaba (BABA), JD.com (JD) and NetEase (NTES)”. These companies, while operating also in New York, is being held at secondary listings in Hong Kong.
And Ant Group, the mother corp who literally owns Alipay, announce that it has chosen both Hong Kong and Shanghai for its initial public offering, making the Chinese market to have more financial influence, possibly overcoming the US in regards to power control.
The index has been hailed by the proponents as “Nasdaq of the East,” as analysts from Citi put it.With “high quality” tech companies being included in the index, the same analysts assumed that all of these companies will eventually get back more and more into Hong Kong.
The Asian reaction to this emergence, however, seems to be adamant more than a passionate reception.South Korea’s Kospi (KOSPI) rose 0. 8%, while China’s Shanghai Composite (SHCOMP) went up 0. 3%. Ironically, Hang Seng (HSI) went down by 0.
1%, and Japan’s Nikkei (N225) has ended with 0.2% getting lower.
It seems the global investors, rather than acting with seemingly rash behaviour, is waiting for a more valued evaluation of the market, as turbulent world politics and the ever-growing casualties of the pandemic ensues.
Incidentally, Gold prices has reached a record high, surpassing $1,933 per ounce, with many resorting to the most stable asset there is.Futures for the Dow (INDU), Nasdaq (COMP) and S&P 500 (SPX) were all up at least 0. 4%.
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