NAVIGATING THROUGH CHANGE: HONG KONG’S CAPITAL MARKET DEVELOPMENTS

In Volume 43, issued March 14, 2024, we highlighted the Hang Seng Index's attractive valuation at a P/E ratio of 8x, which rose to 9.5x by May 20, 2024, after a 16% rally driven by supportive policies. Volume 45 continues our analysis, focusing on the factors from April and May 2024 that fueled the index’s recovery and examining how regulatory changes, geopolitical tensions, and economic stimuli have influenced the Hong Kong capital market from 2020 through 2024.