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China, Hong Kong markets to recover on policy, low risk-free rates

Goola Warden
Goola Warden • 3 min read
China, Hong Kong markets to recover on policy, low risk-free rates
Chinese risk-free rates are at 20 year lows. This coupled with new policy moves may buoy the Hong Kong and Chinese markets. Photo: Bloomberg
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Chinese 10-year yields are close to a 20-year low, at their current level of 1.656% as of Jan 24.

The Chinese and Hong Kong markets have been rangebound for much of the past 12 months. However, with the China Securities Regulatory Commission and the Peoples Bank of China introducing measures to revive the market, the Hang Seng Index challenged the twice tested resistance level of 20,400. A breakout would indicate an upside of 21,800. The Hang Seng Index ended at 20,066 on Jan 24.

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