The Hang Seng index crawled back even as concerns of Evergrande and Kaisa continues. The index is also rising as technology companies continue to struggle. It is trading at H$24,000, which is about 3.65% above the lowest level this month. It has lagged its global peers like Nasdaq 100, Nikkei 225, and Dow Jones.
Hang Seng has been one of the worst-performing indices this year. It has fallen by about 23% from its highest level this year. This happened even as its peers have jumped to an all-time high. There are two main concerns for the index.
First, the real estate sector in Hong Kong and mainland China has struggled this year because of the actions by Beijing. There are rising risks that Evergrande will go bankrupt now that it has struggled paying its debt.
On Monday, it failed to pay its instalments. It is not alone. Kaisa, another developer has struggled to repay its bonds and its proposal to convert its debt to equity has struggled.