Question

In: Finance

How has Covid 19 impacted Asian stock markets, particularly Hong-Kong market? Do some research and answer...

How has Covid 19 impacted Asian stock markets, particularly Hong-Kong market? Do some research and answer in a partner page. Don't forget to add references.

Solutions

Expert Solution

The Covid 19 has triggered a massive sell off across asset classes like stock market, fixed income market ,real estate etc throughout the world. Majority of the Asian market indices represent emerfing markets like India, China etc. The stock market plunged to its 3 years low especially in India in March this year when investors realised how dangerous the virus is. In fact every market whether emerging or developing witnessed a massive sell off in March. Investors took out the money and invested in safe bets like Gold and Dollar. Gold price have risen very much. Every sector did suffer during that period. If we speak about Hong-Kong market the Hangseng index collapsed to value of 21,696 on 23rd March,2020. While its one year high was very close to 29,000.

Automobiles & ancillary, real estate, construction projects, FMCG companies suffered a lot because of the virus. The supply chain movement was disrupted. The virus toll a heavy toll on the workers. Although the market has recovered a lot as of now. The index is at 24,778 value. But another wave of virus and lock down could take a heavy toll on the market. The worst hit was Finance sector which is one of the component of Hong-Kong index because of rise in bad loans and companies defaulting to service debt because of no revenue generation during the lock down phase and more supply chain disruptions.

China’s cabinet-level health policymaker pledged all necessary support for Hong Kong to fight an escalating crisis as the city confirmed another record-high 123 Covid-19 infections last week.

The Hang Seng Index is a free-float capitalization-weighted index of a selection of companies from the Stock Exchange of Hong Kong. The components of the index are divided into four subindices: Commerce and Industry, Finance, Utilities, and Properties. The index was developed with a base level of 100 as of July 31, 1964. HSI does not have official ISIN registered.

Sources

https://www.scmp.com/news/hong-kong/health-environment/article/3094524/coronavirus-hong-kong-sees-16th-covid-19-death

https://www.bloomberg.com/quote/HSI:IND

google.com/search?q=INDEXHANGSENG:+HSI&stick=H4sIAAAAAAAAAONgecRowi3w8sc9YSntSWtOXmNU5eIKzsgvd80rySypFBLnYoOyeKW4uTj1c_UNDPOyLDN4ALHew-A5AAAA&tbm=fin#scso=_xDseX9i6IMrDz7sPyPeikAY1:0


Related Solutions

Impacted by the COVID-19, what is the real situation of world stock markets?
Impacted by the COVID-19, what is the real situation of world stock markets?
Impacted by the COVID-19, what is the real situation of world stock markets? Please list the...
Impacted by the COVID-19, what is the real situation of world stock markets? Please list the index changing of world main stock markets during the period of February 1 to May 31 and analyze the reasons. required to submit a report more than 3000 words.
Impacted by the COVID-19, what is the real situation of world stock markets? Please list the...
Impacted by the COVID-19, what is the real situation of world stock markets? Please list the index changing of world main stock markets during the period of February 1 to May 31 and analyze the reasons.
With the outbreak of COVID-19, many people in Hong Kong choose cooking at home instead of...
With the outbreak of COVID-19, many people in Hong Kong choose cooking at home instead of dining out to reduce the chance of contacting Coronavirus. At the same time, it is observed that many restaurants have closed down. Given that many restaurants cut their menu prices in this period, explain, with the aid of a supply-and-demand diagram, how the above changes affect the market for dining out meals in restaurants.
Scenario: With several coronavirus COVID-19 outbreaks on cruise ships around the world, such as Hong Kong,...
Scenario: With several coronavirus COVID-19 outbreaks on cruise ships around the world, such as Hong Kong, Japan, Egypt and USA, the confident level took a further hit as the US Department of State issued advice on 8 March for U.S. citizens to stay away from cruise ship. While the international cruise industry will be expecting a bitter winter in the coming months, the Hong Kong cruise industry is even on a complete halt. Cruise Line International Association suggested its member...
1.write a research proposal on how the COVID-19 has impacted the consumer satisfaction of pizza hut....
1.write a research proposal on how the COVID-19 has impacted the consumer satisfaction of pizza hut.                                                                    2.Rationale for the research -- why this proposal is beneficial to a    manufacturer, business, nonprofit organization       2.Prior research and background theory or theories that can support this study. Many consumer behavior theories f adapted to your study. You need to include references of related studies that give support to your particular study. It would also be helpful to include any model/s to...
Discuss challenges with COVID-19. What are the risks of transmission? How has COVID-19 impacted the healthcare...
Discuss challenges with COVID-19. What are the risks of transmission? How has COVID-19 impacted the healthcare system and markets, healthcare insurance, healthcare employees, and healthcare facilities both in the US and abroad? (500 words please) No plagiarizing)
What are some economic implications of climate change and/or environmental protections? How has COVID-19 impacted the...
What are some economic implications of climate change and/or environmental protections? How has COVID-19 impacted the implications on the environment?
How has the exchange rate been affected by COVID 19 - how has this impacted the...
How has the exchange rate been affected by COVID 19 - how has this impacted the Pound in comparison to the USD? How was the Pound doing in comparison to the USD prior COVID 19? Make a prediction for the future
How has Covid-19 impacted Zoom's staffing due to Covid-19 social distancing rules and so on?
How has Covid-19 impacted Zoom's staffing due to Covid-19 social distancing rules and so on?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT