Hong Kong finance chief warns of stock market fluctuation after rally …

People walk past a panel displaying the benchmark Hang Seng Index during afternoon trading outside a bank in Hong Kong April 15, 2015. Photo: Reuters

Hong Kong stock market is “very likely” to slip at its opening on Monday, Hong Kong’s finance chief predicted today, as he warned of the possibility of large market fluctuations in the near future.

John Tsang Chun-wah called on investors to remain alert to the possibility of rollercoaster activity in the coming weeks following the stock market rally.

“In the last eight trading days, the Hang Seng Index has risen 2,400 points in total, with the average daily turnover reaching more than HK$230 billion and the largest daily turnover reaching more than HK$290 billion,” the Financial Secretary wrote on his blog on Sunday.

“Actually, it is just a matter of time for a market to adjust when it has aggregated a certain amount of increases. That is absolutely not strange at all.”

The Hang Seng Index declined 0.31 per cent, or 86.59 points, to 27,653.12, on Friday after trading in a narrow range of 27,600 to 27,950 for the whole day.

On a weekly basis, the benchmark index was up only 1.4 per cent, compared to 7.9 per cent the previous week.

Tsang also said that, according to a report released by the International Monetary Fund on Wednesday, the global market is expecting the US to gradually increase interest rates.

On the city’s electoral reform, Tsang confirmed Chief Secretary Carrie Lam Cheng Yuet-ngor would be announcing concrete proposals on Wednesday.

“Whether the electoral reform proposal can be passed, it will have an impact on Hong Kong’s politics, economy and people’s livelihood. This may also be a watershed to determine if Hong Kong will turn from prosperity to decline,” he wrote.

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Hong Kong finance chief warns of stock market fluctuation after rally …