UBS cuts Hong Kong stock target 25% as black sky new reality

black sky cc

“Black sky reality.” Oooo. Scary.

Actually it is kind of of scary. But it’s not the end of the world. It makes sense that Hong Kong’s sky has darkened given its proximity to China. Heck Canada has fallen into recession.

(From The Business Times)

UBS Group AG lowered its target for Hong Kong’s benchmark stock gauge by 25 per cent, saying its worst- case scenario for the city is coming true as the economy weakens and tourism arrivals decline.

The Hang Seng Index will slide to 19,775 as slowing growth in the city and China weigh on corporate earnings, UBS analyst Spencer Leung wrote in a report dated Sept 2. That’s a 5.5 per cent drop from the last close and implies a 16 per cent decline for 2015. In December, UBS’s target for the end of 2015 was 26,484 and the 19,775 level was the “black sky” of four possible outcomes.

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