It is unusual for the Straits Times Index to outperform the Hang Seng Index, but that is what is happening since the last week of Oct. During the week of Nov 1-5, the Hang Seng Index fell by 500 points week-on-week, to close at 24,870. This comes on top of the 749 point decline by the HSI in the last week of Oct.

The turbulence in the bond market on the mainland has probably spilled over to the Hong Kong stock market as Chinese developers - some of which are listed in Hong Kong such as China Evergrande Group, encounter problems with either coupon payments or repaying or refinancing their US dollar bonds.

See: STI gains strength against HSI

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