The Hong Kong stock market (HKEX) showed a first high and then low pattern throughout 2023, with the Hang Seng Index falling by a cumulative 2,734 points (13.8%). Not only did it underperform the world’s major stock market indexes, it also experienced poor performance for four consecutive years for the first time in history.
On the last trading day of this year, the market remained within a narrow range throughout the day. After the Hang Seng Index opened 22 points higher, the gain expanded to 51 points, and then fell to a maximum loss of nearly 100 points. It recovered its losses in the afternoon and closed slightly up 3 points (0.02%) at 17,047 points. The national index also rose only 3 points (0.06%) to 5,768 points. The index rose less than 1 point to 3,764 points. The three major indexes all rose for three days in a row, with a cumulative increase of 707 points (4.3%), 280 points (5.1%) and 216 points (6.1%) respectively. Main board turnover recorded 75.1 billion yuan.
To sum up, in 2023, the Hang Seng Index’s current market high is 22,700 points, and its low is 15,972 points. The high and low fluctuations throughout the year are 6,728 points. The market failed to test the 23,000 level at the beginning of the year, and then started to decline, falling below the 1,000 level in early December. Fortunately, it finally succeeded in regaining the 17,000 level, and stabilized above 17,000 points at the end of the year.
The Hang Seng Index evaporated 2,734 points (13.8%) throughout the year, falling for four consecutive years, the first time since the index was launched in 1964; the H-Share Index lost a total of 936 points (nearly 14%), also falling for four consecutive years, and was launched in 1994. See you later.
The S&T Index outperformed the market, falling 364 points (8.8%) during the period, but still fell for the third consecutive year, closing at 3,764 points. It is worth noting that compared with 2021 and 2022, the declines of the Hang Seng Index, China National Index and the Stock Exchange Index in 2023 have all narrowed compared with the past two years.
In terms of blue chips, the top three companies throughout the year were Li Auto (02015), Lenovo Group (00992) and PetroChina (00857), with gains during the year ranging from more than 50% to 90%. The three worst-performing blue chips in 2023 are Li Ning (02331), Country Garden Services (06098) and Meituan (03690), which fell by 50% to nearly 70%.
Among them, Meituan is the culprit that dragged down the Hang Seng Index. A single stock caused the Hang Seng Index to lose 765 points for the whole year. Together with AIA (01299) and JD.com (09618), the three stocks together dragged the Hang Seng Index down nearly 1,400 points for the whole year, which is equivalent to the Hang Seng Index 2023. It fell by about half the points for the year.
Compared with major global stock market indexes, Hong Kong stocks clearly lag behind. Among the 26 major stock market indexes in the Asia-Pacific region in 2023, the Hang Seng Index and the China National Index both fell by about 14%, occupying the bottom two and three places, only better than the last Thailand SET Index, which fell 15.2% throughout the year. On the other hand, Japanese and Taiwanese stocks performed strongly, with both recording gains of more than 25%.
