Stocks are a 'falling knife' without fundamental changes in China policy, regulatory and geopolitical risks, Natixis says

The rally in Hong Kong stocks in the early weeks of 2022 may flatter to deceive as the market remains a "falling knife" without fundamental changes in key policy and regulatory risks, according to French investment bank Natixis. Analysts led by Hong Kong-based Alicia Garcia Herrero and Gary Ng said the gloomy picture on local equities could persist in the first half, even as rival investment banks and global funds including Goldman Sachs and BlackRock have turned more positive on the outlook for Chinese stocks traded in the mainland and offshore markets. "Hong Kong's equity market can still get worse…