Hong Kong share prices are expected to continue their up trend next week with the possibility of record runs on the back of strong liquidity, dealers said Friday. They said a continued shift of funds from China would continue to boost the local market, as investors fear more cooling measures from mainland authorities to rein in overheated markets.
Hong Kong has also been buoyed by mainland's expanded qualified domestic institutional investor (QDII) program which allows mainland investors to buy H-shares here. This is likely to continue next week, they added.
"Valuations here remain low relative to that in the A-shares market," said Eugene Law, head of research at Celestial Asia Securities Holdings. "Continued interest in China stocks, coupled with a high level of liquidity, will drive the local market even higher," he added.
Castor Pang, strategist at Sun Hung Kai Financial Group, echoed his views: "All funds are going into H-shares and this will continue in the next few days." This, coupled with a positive outlook on the Wall Street, should keep the Hong Kong bourse on the upside.
"Turnover might break record and we will have to see about the Hang Seng index but we are not far from hitting another record," he added. For the week to June 15, the benchmark Hang Seng index rose 507.9 points or 2.48 percent at 21,017.05. Pang said the index could trade as high as 21,500 points next week.
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