^best answer yet
You are a little confused friend. If you can tell us why you think their returns should be similiar, we can tell you why they are different.
i agree with Dreary.
I agree that both of you have no understanding of what my question was.
Don’t you think it’s easier if you just tell us why you think their returns should be similiar?
i’m not perturbed by why one rose and the other has fallen. its pretty obvious.
I agree that none of you have no idea anymore what this thread isn’t not about.
JohnThainsLimoDriver is definitely on drugs. I would say crack cocain too.
never trust a crackhead.
Arent both indices primariliy Chinese companies? First of all, given that the world market return probably explains a lot of individual stock index returns, it’s surprising that they don’t more or less move similarly. Secondly you would expect both of these to move in relation to some underlying Chinese return. Sure there can be differences, but the OP was mentioning a pretty BIG difference. One of the features of the global financial crisis is that correlations across all assets are getting high as people deleverage, therefore, the fact that one is up substantially whereas the other is down is a little odd. The HK market is the one that seems to be the most similar to what’s happening elsewhere around the world, so it’s the SSE market that seems to be behaving a little differently from the rest of the world. It’s a legitimate question to try to figure out if this is speculation or if there is something in the fundamental picture that is going on. The Chinese have announced a big stimulus package for them. If this stimulus package affects SSE listed companies more than HK listed companies, that might be an explanation. If someone has a comparative analysis of the composition of the indices, it would be great to see a post here.
^well said. Sometimes I wonder exactly how stringent the CFA standards are if they award charters to people who can’t even understand simple questions.