Stock and real estate markets are closely related. During the past half year , Hong Kong stock market is so volatile that Hang Seng Index [HSI] fluctuated hundreds points in two separate days. The market generally worries that the US sub-prime crisis may drag the global finance and the related real estate market, even Mr. Lee Shau Kee, who are hailed as the “God of Hong Kong Stock Investment ,” point ed out that the prices of real estate in Hong Kong may hardly rise this year.

There are reservations on the issue of US sub-prime crisis , though the influences cannot be optimistically expected . As a country affecting the worldwide economy, it is believed that the US will solve the crisis by all means despite how difficult it is.

I personally hold that the volatile of the stock market recently is closely related to the equity derivatives emerging in recent years, which have formed a certain selling pressure and directly affect the performance of the stocks market . While these derivative s are on contract basis for one year or above , it is believe d that the stock market in Hong Kong will remain volatile in 2008.