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Tuesday, August 21, 2018
Hang Seng Property Index - The Fundamentals and Technicals are pointing to a Impending Crash !
For the last 30 years , the Hang Seng Property index has experienced 2 Big Crashes in 1997 and 2008.. From my Chart, after nearly 10 years of uptrend since 2009 the index has reached a multi year peak and is about to experience another major crash. This could come in the next 6 months. The Fundamentals for such a crash is also in place with rising interest rates, slowing economy and a depreciating Chinese Yuan . From 2005-2006 period property price correction was triggered by mortgage rate hike, in 2008 it was caused by economic downturn due to the global financial crisis and in 2015-2016 period it was due to Chinese yuan depreciation. All the headwinds are now in playto trigger yet another property crash. This blog is bearish on Country Garden, SHKP and Sino Land.