STOCKS | KGI's Leung Keeps Forecast for Hang Seng Index to Reach 30,000 by Year-End

The Hang Seng Index fell back to 24,565, but KGI Asia Wealth Management Chief Investment Officer Leung Kai-tong maintained his forecast that the index will reach 30,000 by the end of this year. In his view, according to Ming Pao, the positive factors cited at the start of the year remain unchanged and the latest rally has been driven mainly by capital flows; if global equity-market volatility increases in the second half, Asia could become a safe haven for global funds and Hong Kong stocks may benefit. Leung said mainland China’s tightening of irregular cross-border investment by individuals should have limited impact on Hong Kong stocks given the southbound Stock Connect mechanism.