Hong Kong property stocks slide following weekend unrest; Investors huddle in defensive corners of US market


• Hong Kong’s benchmark stock index was taking a big hit on Monday following mass demonstrations and fierce clashes over the weekend, with property developers especially suffered some of the largest losses.
• The Hang Seng index was down 1.3 per cent in morning trading, underperforming peers in the region, with the Hang Seng property index falling 2.3 per cent.
• The slide in equities came after three consecutive days of mass demonstrations in the city that led to some of the fiercest clashes seen yet in the ongoing political crisis that has roiled Hong Kong.
• The protests are hurting the territory’s economy according to government figures and businesses.
• Political instability could weigh on Hong Kong’s red hot property market in the midst of a 16-year bull run, due to a poor market sentiment.
• Do you think the mass demonstration will shake Hong Kong’s reputation as a stable financial hub in the long term?


• The US stock market is on course for its best year in decades, with a 20 per cent year-to-date gain for the S&P 500.
• Real estate, utilities and consumer staples have outperformed all other sectors except communication services over the past year as investors navigate slowing economic growth and concerns over further trade tariffs.
• Three of the four best-performing sectors over that period are the most defensive corners of the market, where investors tend to turn when things are about to get tougher.
• “we would expect defensives to repeat the historical pattern and outperform if economic data remain weak enough to motivate an extended Fed easing cycle,” the Goldman analysts said.