Weak Yuan Boosts the Appeal of Hong Kong Stocks Over China's.

STOCKS (Finance); INVESTORS; RENMINBI

Chinese stocks traded on the mainland are underperforming compared to their Hong Kong counterparts due to a weak yuan. The CSI 300 Index has risen less than 3% this quarter, while the Hang Seng China Enterprises Index has jumped over 15%. Experts predict that Hong Kong stocks will continue to attract capital as the local currency's peg to the dollar protects investors from the impact of higher US rates. The influx of money from mainland investors into Hong Kong equities has also contributed to the rally. However, the performance of Hong Kong stocks is still dependent on the recovery of China's economy and a weak yuan could negatively impact them. [Extracted from the article]

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