Hong Kong's stock market has been the worst-performing major market over the past 25 years, reflecting the confluence of domestic politics, China's influence, and global economic shifts.
The writer is a faculty member at Yale, formerly chair of Morgan Stanley Asia, and is the author of “Accidental Conflict: America, China , and the Clash of False Narratives” There is more to economic vitality than the stock market . But for Hong Kong , the market has always been emblematic of success. Imagine, a small city state with what had long been the world’s fourth largest exchange (it is now fifth, according to Bloomberg data), a global leader of new stock offerings as recently as 2019.
It pains me to admit it, but Hong Kong is now over. A city I once called home and have cherished as a bastion of dynamism has had the world’s worst-performing major stock market over the past quarter of a century. Since the handover to China in 1997, the Hang Seng index has been basically flat, up only about 5 per cent. Over that same period, the S&P 500 has surged more than fourfold; even mainland China’s underperforming Shanghai Composite has far outdistanced the Hong Kong bourse. Hong Kong’s demise reflects the confluence of three factors. First, domestic politic
Hong Kong Stock Market Decline Domestic Politics China Global Economy