HK - Market Direction 01 (Jan 12 - Jul 15)

[winston]

<Research Report>G Sachs: Add to China; focus on under-positioned laggards

Goldman Sachs, in its report, stated that the Asia Pacific market has been under correction recently. While the market may be stabilized in near term, the research house continued to expect further gain in 2H15.

It is recommended to increase holdings in Chinese equities. The broker is bullish for insurance, internet and banks in China as well as energy and software in India.

The two major drivers for Chinese equity are liquidity and reform. It is expected to have at least another 25 bp reduction in the benchmark lending rate and two more cuts of 50-75 bp in the reserve ratio requirement.

In terms of policy reform, with the announcement of the Shenzhen-Hong Kong connect scheme, it is expected that institutional investors will build position. Hence, it is recommended to pay attention to recent laggards with strong fundamentals, including CITIC SEC (06030.HK), CITIC (00267.HK), ABC (01288.HK), BRILLIANCE CHI (01114.HK) and AAC TECH (02018.HK).

Goldman Sachs also recommend the following nine Chinese stocks, namely, CHINA MOBILE (00941.HK), CCB (00939.HK), Alibaba (BABA.US), BANK OF CHINA (03988.HK), Baidu (BIDU.US), PING AN (02318.HK), CHINA LIFE (02628.HK), CITIC BANK (00998.HK) and CHINA COMM CONS (01800.HK).

Source: AAStocks Financial News

[winston]

<Research Report> C Suisse' 20 picks for undervalued stocks in Asia-Pacific (Table)

Credit Suisse, in its report, listed the undervalued stocks in Asia-Pacific according to their relationship between the P/E and ROE:

Stock / Investment rating / Target price (HK$)
ABC (01288.HK) / Outperform / 5.4
CCB (00939.HK) / Outperform / 9.4
ICBC (01398.HK) / Outperform / 8.7
MINSHENG BANK (01988.HK) / Outperform / 13.2
CEB BANK (06818.HK) / Neutral / 5.3
CITIC BANK (00998.HK) / Outperform / 8.1
BANK OF CHINA (03988.HK) / Outperform / 6.4
CM BANK (03968.HK) / Outperform / 29.2
CHINA OVERSEAS (00688.HK) / Neutral / 29
BANKCOMM (03328.HK) / Neutral / 7.9
CHINA SHENHUA (01088.HK) / Underperform / 17
HUANENG POWER (00902.HK) / Underperform / 7.3

Source: AAStocks Financial News

[behappyalways]

高盛唱淡美長債　道指早段跌180點
環球債息飆　歐美股當災
http://hk.apple.nextmedia.com/financees ... 3/19145601

[winston]

MSCI China Index adds 9 H-shares; 4 removed (Correct)

MSCI announced the semiannual review results of stock indexes.

Nine stocks have been added in the MSCI China Index while four have been removed. The changes will become effective after trading hours on 29 May.

For the China Index, the nine newly added stocks include CONCH VENTURE (00586.HK), CHINA POWER (02380.HK), CHINA SOUTH AIR (01055.HK), WANDA COMM (03699.HK), GF SEC (01776.HK), GOLDIN PPT (00283.HK), HN RENEWABLES (00958.HK), LUYE PHARMA (02186.HK) and SUNAC (01918.HK).

The four stocks removed from the index are CHINASOUTHCITY (01668.HK), KINGBOARD CHEM (00148.HK), LEE & MAN PAPER (02314.HK) and U-PRESID CHINA (00220.HK).


Source: AAStocks Financial News

[behappyalways]

深港通傳聞炒起　港股升535點
專家：散戶須慎防高位回吐
http://hk.apple.nextmedia.com/news/art/ ... 1431414620

[behappyalways]

上市公司老闆掀押股借錢潮
http://hk.apple.nextmedia.com/financees ... 1431863399

[behappyalways]

Billionaire Pan Sutong’s Goldin Companies Plunge in Hong Kong
http://www.bloomberg.com/news/articles/ ... -hong-kong


Short Sellers and Investors Face Off in Hong Kong
http://www.bloomberg.com/news/videos/20 ... -hong-kong

[winston]

Searching for beneficiaries of southbound flow

We tried to gauge the stocks that domestic investors are buying in Hong Kong from three angles:
1) core holdings of QDII funds,
2) most actively traded stocks through Shanghai-Hong Kong Stock Connect, and
3) best share price performance in April, when there was meaningful southbound flow.

We observed that the results of our screening were generally stocks that:
a) are trading at discounts to H-shares (dual-listed companies) or at substantial valuation gaps to their A-share peers, and
b) were related to certain hot themes such as the “One Belt One Road” national strategy, SOE reform and the “Internet +” concept.

As these themes are medium-to-long term, we expect the stock preference of southbound flow will not change significantly in 2H15.

We compiled a list of companies that fulfilled at least two of our three criteria. We do not suggest investors to chase all these names due to the rich valuations of selected companies but we believe this list gives investors strong hints on the type of companies favoured by domestic investors.

https://brokingrfs.cimb.com/MDVhu75UJjr ... IxJ1U1.pdf

[behappyalways]

Hong Kong Investors Want More Oversight After $35 Billion Wipeout
http://www.bloomberg.com/news/articles/ ... ight-calls

[behappyalways]

漢能翻版　高銀孖寶跌四成
市場憂燒至其他細價股
http://hk.apple.nextmedia.com/financees ... 2/19156315