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Hong Kong and mainland China shares tank in global rout

The worldwide market rout continued into Asia as Hong Kong and China cuts fell sharply Friday after the U.S. stock market tanked overnight.

The String up Seng Index was down about 3.8 percent at 29,306.63 at 11.08 a.m. HK/SIN while the Shanghai composite was down 4.5 percent at 3,114.0472.

Regardless of the sell-off, equities may just be in their “first leg of correction,” said William Ma, chief investment copper of Noah Holdings in Hong Kong.

Even though the mainland sell is not fully connected to the global market, fund managers on the mainland are talking around the global economy “half the time,” underscoring the international nature of markets that is motivating a “synchronized collapse” in both Hong Kong and China, Ma told CNBC.

With the aggregate happening, it’s still too early to jump into the market for bargains, he revealed.

Ma recommends waiting for the Hang Seng Index to tank another 15 percent beforehand putting money into the Chinese tech giant trio Baidu, Alibaba and Tencent — collectively be versed as BAT.

Even amid the sharp slide, some experts recommended cool.

One, Philip Li, senior fund manager at Value Partners, said the au courant market downturn appears to be technical in nature.

Asia will be below pressure as long as its markets are correlated to the Dow, but earnings expectations for companies and the enlargement outlooks for regional economies are solid, so the current rout appears divorced from any centrals, Li added.

The Chinese markets were already under pressure rhythmical before this week’s market sell-off as investors took profit on of the long Lunar New Year public holidays that start fresher next week.

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