HSBC MPF – Asian equities market review and China and Hong Kong market outlook for Q3 2016

Andrew Lee, Product Specialist, Asian Equities from HSBC Global Asset Management (Hong Kong) Limited shares his views on Asian equities market as well as investment market outlook of China and Hong Kong stock market over the medium to long term timeframe. Key highlights: •Volatility in the Asian and Chinese equity markets is expected to remain in the near term due to external factors such as the potential kick-start of a Fed rate hike cycle, the upcoming US election and uncertainties in Europe such as Brexit. However, we believe there are still investing opportunities in the regional equities market. •More proactive fiscal policies from the governments across the Asian regional markets, flexibility for further accommodative monetary policies amid benign inflation, coupled with continued efforts in pushing forward economic reforms should help sustain the growth momentum going in Asia and provide support for the equity markets. •The announcement of Shenzhen-Hong Kong Stock Connect has not just reignited the confidence of many investors in stock investment, it also provides the investors in the Mainland and Hong Kong with an enriched, wider and deeper investment universe, particularly the small and mid-cap space. •Valuation of Asian equities, including Chinese and Hong Kong equities, continues to be at a relatively attractive level compared to other developed markets and their own historical averages. We believe that the southbound investing activities would still likely be active in the near future, translating into a structural support for the offshore Chinese and Hong Kong equity markets.