Heisenberg Report

Hong Kong Stocks Collapse, Hang Seng Falls 1,200 Points

So yeah, one of things we’ve pointed out over the past 24 hours is that you really want to watch the Hang Seng and also H-shares amid the unfolding global equity rout because they were the world-beaters in January:

As you can see, South Korean small-caps were standout performers as well and they were down 4% on Monday and are down markedly again on Tuesday.

But let’s zoom in on the Hang Seng. On Monday, it had a horrific gap lower at the open but managed to retrace a good portion of the losses as the day wore on. It will need that kind of bounce again, because Hong Kong shares are down nearly 4% early and H-shares are sharply lower as well. If you pan out a bit, you can see that February has not been nearly as kind to Hong Kong shares as January was:

That is not pretty and if you’re keeping score at home, the Hang Seng is down 1,200 points so far today:

So, hey! Don’t feel too bad U.S. investors, your benchmark isn’t the only one down more than 1,000 points.

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