Mainland Investors & Listed Companies Buy The Hong Kong Dip

Key News

Asian equities were lower on light volumes as investors sat on the sidelines in advance of central bank press conferences.

Mainland China and Hong Kong were lower on very light volumes. Mainland investors continue to buy the Hong Kong dip via Southbound Stock Connect with +$408 million of net buying today. Hong Kong-listed companies continue to buy back stock with nearly $9.4 billion (HK $73 billion) of buying this year, according to the South China Morning Post. I continue to recommend companies pay dividends as it rewards investors while hurting short sellers who would owe the dividend, thus making shorting more expensive. With buyers on the sidelines, short sellers pressed their bets, as 21% of Hong Kong’s Main Board turnover was short turnover.