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 | Tuesday, April 18, 2000, updated at 17:04(GMT+8) | ||||||||||||
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HK Stock Adjusted in Advance, High-tech Stock Still BullishThe open quotation of Hong Kong share prices may cause a chain slump faced with the drastic plunge on Wall Street last Friday, sources of Hong Kong securities said.A representative attending the World Economic Forum in Beijing called on the investors that they'd better not be over panic about the plunge. Richard Li, chairman of Pacific Central Group said the slump on the American high-tech stock is a short-time phenomenon, new economic stock still holds a very promising prospect. American stock, especially the technology-heavy Nasdaq, fell steeply last week. Implicated by America stock, Hong Kong stock dropped consistently by a big margin, a drop of 16000 points. The close market Hang Seng Index tumbled 799 points over the week before the last at 16142 points, or 4.7 % for the 3rd consecutive week. The daily deal stood at 11.4 billion HK dollars. The plunge of the American stock market last Friday rendered the Wall Streets in woes, and analysts said the irresistible trend would further affect Hong Kong. Analysts said although the HK stock was predicted to face a repeated slump this year or even in a longer time, Hong Kong still held a very sound economy, and all sorts of industries are heading for a recovery. This is conducive to enhancing the listing companies to improve their performance. HK stock is sure to rise after the adjustment. The Hang Seng Index dropped 2000 points from 18000 points. Many stocks, especially high-tech network stocks, have been oversold, and a further slump will be certain to cause a big investment to "keep it in order", thus causing a rebound. As to the problem of capital balance of the HK bank system still showing deficit, bank sources said this was different between the foreign capital takeaway during the financial crises in 1998.It is merely a show of short-term capital flow, and not necessary to over-worried about it.
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