三级aa视频在线观看-三级国产-三级国产精品一区二区-三级国产三级在线-三级国产在线

Global EditionASIA 中文雙語Fran?ais
HongKong Comment(1)

Global liquidity tightening could bring more than ripples

By Peter Liang | HK Edition | Updated: 2017-09-25 07:49
Share
Share - WeChat

Some market commentators see property, share bull-run continuing but Peter Liang warns against underestimating effect of higher credit costs

The unwinding of the United States Federal Reserve's balance sheet has many Hong Kong investors asking if that means the beginning of the end, or the end of the beginning, of the liquidity-driven stock- and property-market boom.

This is the question that has brought forth quick and immediate responses from stock punters and property agents who tried to assure doubters that they ain't seen nothing yet. For instance, a veteran stock commentator, widely known as Uncle Luk, told a mass-circulation daily newspaper that the Fed's announcement about its unwinding program has "removed all the uncertainties" overhanging the stock market, clearing the way for the benchmark index to scale new heights.

His intensive euphoria was shared by Shih Wing-ching, founder and chairman of Centaline, one of Hong Kong's largest property agents. In the same newspaper article, Shih was quoted declaring that the property and stock markets are warming up for an even bigger boom than the one people are seeing.

Many more investors are not so sure of that. What has become certain from the Fed's unwinding schedule and its latest interest-rate forecast are that the plentiful supply of cheap credit is ending and borrowing costs have bottomed out. With the two major driving forces behind the latest stock and property rally gone, investors are asking what is there to keep the good times going.

It's not just the US central bank that is reversing the loose money policy of the past nine years. The strengthening of the economies of major European Union member states has prompted the European Central Bank to consider a tighter monetary policy. The exchange rate of the British pound has surged against other major currencies after the United Kingdom's central bank indicated its intention to raise interest rates.

None of these are fazing the market bulls who have much at stake in the price rally continuing. They bank their hope on the continuous inflow of overseas, particularly Chinese mainland, flight capital, snapping up Hong Kong assets at almost any price without paying regard to economic fundamentals.

Cheap and readily available credit from banks and finance companies has let many Hong Kong people join the buying frenzy, plunking down millions of borrowed funds to buy apartments that provide individual living space that is below the standard set for government-built low-cost homes. Even subsidized public-housing units sold to needy families have become commodities for speculation in this crazy market.

As such, prices of assets in Hong Kong have gone completely out of line with their underlying values. The government has repeatedly warned prospective homebuyers to beware of rising borrowing costs. But its advice has largely fallen on deaf ears.

Nobody wants to talk about the so-called day of reckoning, when the average price of assets will start to converge with their underlying values. But recent changes in the macro-economic environment and government monetary policies are setting the stage, laying down conditions for a return to normalcy where economic fundamentals count.

For Hong Kong, public confidence in the government's housing policy - more particularly, its perceived ability and political will to solve the housing shortage problem in Hong Kong - is building up now. Some of the latest measures, including the creation of shared housing for the relief of up to 1,000 needy families, have helped reassure the public of the government's commitment and willingness to explore innovative and practical approaches to tackling what is basically a long-term problem.

Irrespective of what Shih, Uncle Luk and others are trying to say, the combination of rising borrowing costs, tighter credit and a positive government housing policy are expected to bring some sanity back to asset markets. Those who believe in the omnipotence of flight capital must bear in mind that scarcer credit would hit the buying power of even the wealthiest overseas investors.

Indeed, investors are asking the right question. This could be the beginning of the end of the long bull-run in asset markets.

The author is a veteran market commentator.

(HK Edition 09/25/2017 page10)

Today's Top News

Editor's picks

Most Viewed

Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
主站蜘蛛池模板: 欧美成人黑人性视频 | 亚洲免费a| 草逼网站视频 | 欧美国产精品 | 欧美影视一区二区三区 | 激情婷婷综合 | 毛片一级毛片 | 欧美xx毛片免费看 | 日韩美女黄大片在线观看 | 成人三级在线 | 曰韩一级毛片 | 久草色视频 | 日韩一级精品视频在线观看 | 欧美性生活视频播放 | 尤物在线播放 | 国产伦精品一区二区 | 欧美日韩中文字幕在线视频 | 欧美精品国产制服第一页 | 中文字幕电影在线 | 亚洲a成人7777777久久 | 国产美女主播精品大秀系列 | 国产美女免费网站 | 精品成人在线视频 | 亚洲第五色综合网啪啪 | 哪里可以看黄色播放免费 | 国产精品性视频免费播放 | 伊人精品在线 | 国产成人精品免费视频动漫 | 中国一级特黄的片子免费 | 国产女精品视频在ktv | 麻豆麻豆必出精品入口 | 女人被两根一起进3p在线观看 | 午夜一级片 | 久久国产乱子伦精品免费强 | 国产日产精品久久久久快鸭 | 免费特黄一级欧美大片在线看 | 久久久夜色精品国产噜噜 | 国产精品综合网 | 欧美亚洲国产成人高清在线 | 色婷婷激情五月综合 | 91在线免费视频 |