Pedestrians walk past a stocks display board showing the Hang Seng Index. Panic gripped trading floors across the world after record-breaking losses on Wall Street. / AFP PHOTO / Anthony WALLACE
Pedestrians walk past a stocks display board showing the Hang Seng Index. Panic gripped trading floors across the world after record-breaking losses on Wall Street. / AFP PHOTO / Anthony WALLACE
As global equity investors reel from the biggest sell-off in two years, nowhere has the pain been more acute than in China and Hong Kong.
Benchmark indices for the world’s second- and fourth-largest stock markets have fallen faster than any of their major peers since the global rout began late last month. With the losses deepening on Friday to more than 12 per cent, both markets were poised to snap their longest-ever streaks without a 10 per cent correction.
The sudden tumble, China’s worst since its 2015 market collapse, has shocked many investors who had grown accustomed to the steadying effect of government intervention over the past two years. But after guiding the Shanghai Composite Index to its calmest bull market in history, authorities are now displaying a higher threshold for pain as they seek to snuff out moral hazard and contain risk in the nation’s US$16 trillion shadow-financing system.
The big question is whether stocks are now signaling trouble ahead for the world’s second-largest economy. Most analysts are still sanguine, with the consensus estimate holding steady at 6.5 per cent growth for 2018. Optimists point to the corporate bond market’s relative resilience over the past two weeks and a yuan that still trades near its strongest in two years against the dollar, despite losing some ground in recent days. Investors aren’t yet showing signs of 2015-style panic.
Still, market declines in China have a habit of snowballing. Many observers are bracing for more volatility as liquidity conditions tighten before the Chinese New Year break that starts next week. On average, declines of 10 per cent or more in the Shanghai Composite have lasted two months before a reversal of the same magnitude.
“We are still in the depth of market volatility as sentiment was hurt by the double whammy of US market turmoil and deleveraging efforts at home,” said Wu Kan, a Shanghai-based fund manager at Shanshan Finance. “Risk appetite has dropped sharply and I don’t think the situation will get any better before the Chinese New Year holiday.”
Scoreline
Switzerland 5
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), EsekaiaDranibota (Harlequins), Matt Mills (Exiles), JaenBotes (Exiles), KristianStinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), EmosiVacanau (Harlequins), NikoVolavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), ThinusSteyn (Exiles)
THE BIG THREE
NOVAK DJOKOVIC
19 grand slam singles titles
Wimbledon: 5 (2011, 14, 15, 18, 19)
French Open: 2 (2016, 21)
US Open: 3 (2011, 15, 18)
Australian Open: 9 (2008, 11, 12, 13, 15, 16, 19, 20, 21)
Prize money: $150m
ROGER FEDERER
20 grand slam singles titles
Wimbledon: 8 (2003, 04, 05, 06, 07, 09, 12, 17)
French Open: 1 (2009)
US Open: 5 (2004, 05, 06, 07, 08)
Australian Open: 6 (2004, 06, 07, 10, 17, 18)
Prize money: $130m
RAFAEL NADAL
20 grand slam singles titles
Wimbledon: 2 (2008, 10)
French Open: 13 (2005, 06, 07, 08, 10, 11, 12, 13, 14, 17, 18, 19, 20)
US Open: 4 (2010, 13, 17, 19)
Australian Open: 1 (2009)
Prize money: $125m
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
One showed 28 per cent of female students at a Dubai university reported symptoms linked to depression. Another in Al Ain found 22.2 per cent of students had depressive symptoms - five times the global average.
It said the country has made strides to address mental health problems but said: “Our review highlights the overall prevalence of depressive symptoms and depression, which may long have been overlooked."
Prof Samir Al Adawi, of the department of behavioural medicine at Sultan Qaboos University in Oman, who was not involved in the study but is a recognised expert in the Gulf, said how mental health is discussed varies significantly between cultures and nationalities.
“The problem we have in the Gulf is the cross-cultural differences and how people articulate emotional distress," said Prof Al Adawi.
“Someone will say that I have physical complaints rather than emotional complaints. This is the major problem with any discussion around depression."
Daniel Bardsley
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
