Hong Kong Leads Strong Third Quarter Growth In Asian Markets
by Mary Swire, Tax-News.com, Hong Kong
01 October 2004

Asian equity markets, led by Hong Kong, significantly outperformed global markets in the third quarter of 2004, according to recent figures.

Data compiled by investment bank Merrill Lynch has shown that in the third quarter, the MSCI Asia Pacific ex-Japan index gained over 5% in US dollar terms, outperforming the MSCI World market by as much as 7%.

Meanwhile, the MSCI Hong Kong index gained 9% during this three month period.

Analysts have attributed the strong gains in the Hong Kong market to a number of favourable economic factors affecting the territory in recent months.

Firstly, there has been a strong rebound in the property sector, coupled with the city’s gradual emergence from a long period of deflation.

Secondly, the lifting of investment restrictions on mainland firms has cut the time taken for listing applications from about 6 months to 15 days, which has added to the mood of optimism regarding Hong Kong's investment climate.

In addition, observers have pointed to a series of positive earnings reports from Hong Kong-based firms, which have helped to boost the Hang Seng index.

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