Quarterly Outlook
Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges
Althea Spinozzi
Head of Fixed Income Strategy
Access both platforms from your single Saxo account.
How to Increase Return on Your Hong Kong Stock Portfolio
Saxo Bank
Summary: The Hang Seng index has rebounded by 30% since January this year and the recent retracement has provided an opportunity for investors for further adding more stocks to their existing portfolio but with limited access to capital, how can investors capture this opportunity to enhance the return of the existing portfolio with the limit of capital.
What is happening in Hang Seng Index?
The Hang Seng index has rebounded over 30% since the 22nd of January from 14,700 levels to 19,700 levels for about 5,000 points but since the 20th of May, the Hang Seng index has retraced 1,000 points for approximately 20%.
What are the catalysts for supporting the Hang Seng Index?
As what we have discussed in ourrecent Saxo Article, several points support the Hang Seng Index. The reduction of dividend tax for mainland investors in Hong Kong stocks which supports high-dividend stocks in particular Chinese banks, Telecoms, and energy companies as well as Hong Kong exchange and Chinese Securities firms.
The Export growth of China has rebounded significantly in April. The rebound has been contributed by selling more intermediate goods to ASEAN countries and India and also China CPI inflation picked up to 0.3% y/y in April. It is driven by increases in service prices particularly in tourism-related spending, air tickets, rental vehicles, and hotel prices.
In one of our more recent article Hong Kong Equity rally surpasses global Markets. The Low valuation relative to other financial markets, underweight position, and strong performance in large-cap China tech, healthcare, property, and insurance stocks have also attracted investors to the Hong Kong Markets.
What should you do to capitalize your existing Hong Kong stocks portfolio?
Investors who have invested in the Hong Kong stock market in their existing portfolio and still have a positive view of the current trends see the recent retracement as an opportunity to invest more. However, the limited access to capital restricts investors from capturing such opportunities. One of the tools to help our investors is using Margin Lending.
What is Margin Lending?
Margin lending allows our investors to use their existing securities as collateral to enhance their buying power to buy more in stocks and ETF beyond the value of the cash and/or securities on their account. It works as a loan or credit facility and the amount investors can borrow depends on their financial situation and the collateral value.
The total amount investors can borrow depends on the securities in their portfolio, each security is assigned a risk rating that determines the number of times you can leverage. Out of 82 stocks in the Hang Seng Index, there are 74 stocks, more than 90% of the stocks you can leverage more than 3 times.
How to enable Margin Lending in Saxo Trader?
A video instruction on how to enable Margin Lending please click on this link.
For factsheet on Margin Lending, please click on Factsheet on Margin Lending.
Latest Market Insights
Quarterly Outlook
-
-
Quarterly Outlook
Equity Outlook: Will lower rates lift all boats in equities?
Peter Garnry
Chief Investment Strategist
After a period of historically high equity index concentration driven by the 'Magnificent Seven' sto... -
Quarterly Outlook
FX Outlook: USD in limbo amid political and policy jitters
Charu Chanana
Chief Investment Strategist
As we enter the final quarter of 2024, currency markets are set for heightened turbulence due to US ... -
Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
The Fed started the US rate cut cycle in Q3 and in this macro outlook we will explore how the rate c... -
Quarterly Outlook
Commodity Outlook: Gold and silver continue to shine bright
Ole Hansen
Head of Commodity Strategy
-
Quarterly Outlook
FX: Risk-on currencies to surge against havens
Charu Chanana
Chief Investment Strategist
Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperfo... -
Quarterly Outlook
Equities: Are we blowing bubbles again
Peter Garnry
Chief Investment Strategist
Explore key trends and opportunities in European equities and electrification theme as market dynami... -
Quarterly Outlook
Macro: Sandcastle economics
Peter Garnry
Chief Investment Strategist
Explore the "two-lane economy," European equities, energy commodities, and the impact of US fiscal p... -
Quarterly Outlook
Bonds: What to do until inflation stabilises
Althea Spinozzi
Head of Fixed Income Strategy
Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain ... -
Quarterly Outlook
Commodities: Energy and grains in focus as metals pause
Ole Hansen
Head of Commodity Strategy
Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities i...
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)