Hang Seng loses a fifth of its value; prospects bleak

After losing a fifth of its value in 2011, the Hang Seng Index staggered into 2012 facing the stark reality of even more crippling losses.

HSI capped the grim year of 2011 by shedding 1.1 percent during the final trading week in December, capping its plunge in value to 20 percent for the entire year.

“This year, the world was swayed by the European debt crisis,” said Takashi Aoki, who helps manage the equivalent of $1.5 billion at Tokyo-based Mizuho Asset Management Co. 

“More investors think the U.S. economy is firmer and growing slowly, and this will last for a while. Europe has entered a recession but it’s unlikely to deteriorate badly. Emerging countries are transitioning from economic slowdown to faster growth again.”

HSI’s retreat was led by banks and developers as China intensified measures to curb inflation and property prices. Esprit Holdings Ltd., a clothing retailer, led 2011’s losers, falling 73 percent on concern the failure to contain Europe’s debt crisis will further undermine the company’s brand in its biggest market.

Join Hong Kong Business community

The broader MSCI Asia Pacific Index lost about $1.58 trillion in 2011 amid concern Europe’s debt crisis will drag the global economy into recession in 2012.

Read more here.
 

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

HKEX launched Order Routing Service on Integrated Fund Platform
The move addressed some long-standing operational challenges.Hong Kong Exchanges and Clearing Limited (HKEX) launched the Order Routing Service that connects fund distributors and transfer agents on its Integrated Fund Platform (IFP).The new service is based on the Fund Repository system and helps transform the fund order placement process into a seamless and integrated system.Supported by the data network from Shenzhen Stock Exchange, the service promotes better efficiency and collaboration across the fund distribution network by enhancing communications between fund distributors and agents.IFP also welcomes an initial cohort of 33 distributors, transfer agents and fund houses.
HKTDC signs first MOU with Singapore-based bank
The partnership also aims to generate job opportunities and strengthen communities across both regions.The Hong Kong Trade Development Council (HKTDC) signed a Memorandum of Understanding (MOU) with United Overseas Bank Hong Kong Branch (UOB Hong Kong) at the ASEAN Conference 2025 in Singapore, a first of such a partnership for Hong Kong.The MOU aims to strengthen regional ties and promote sustainable growth by leveraging UOB’s extensive regional network and financial expertise, alongside HKTDC’s strengths in trade promotion, to access new markets, resources and professional knowledge.The MOU also promotes local enterprise development and economic resilience by matching local value chains with foreign direct investments(FDI). 
OCBC Bank Hong Kong sets up team to support entrepreneurs
OCBC Group is aiming to disburse S$5b in loans to entrepreneurs by 2028