Hong Kong public utilities stocks tend to buck the trend each time the Hang Seng Index sees a drastic fall. Amidst geopolitical tensions and uncertainties, top tier safe haven stocks the likes of CLP Holdings Ltd (002.HK), HK Electric Investments Ltd (2638.HK), Power Assets Holdings Ltd (006.HK), and Hong Kong & China Gas Co Ltd (003.HK) are able to attract funds.

Despite rising against the falling market, the above-mentioned stocks did not rise substantially during the recent downturn, as investors are more interested in high-growth stocks like Tencent Holdings Ltd (700.HK) for example.

Comparing CLP Holdings and Tencent: CLP’s 52-week high-low measures a spread of 13 percent compared to Tencent’s 83 percent. Naturally, a high growth stock is always more attractive after each great correction due to the potentially higher rate of return.

However, it is still highly advisable that investors diversify their risk by building a balanced investment portfolio that includes both Tencent and CLP in my opinion.

Companies providing property management, cleaning, and laundry services are similar to public utilities companies, and they receive stable income. This is especially so for property management companies that are related to big real estate developers.

FSE Services Group Ltd (331.HK), originally an electric machinery company, has recently acquired a cleaning and laundry company in its goal to expand into property management too. While FSE Services has a mere market cap of just HK$1.2 billion, it is backed by New World China Land Ltd (017.HK), whose chairman is also Dr. Cheng Kar-Shun. Trading volume of the stock had previously been rather low, but its stock price finally began to rocket after the acquisition was made known.

Despite trading at a much higher price, FSE Services still offers an indicative yield of 5.7 percent. I had previously recommended this stock before when the broader market was under a downward correction. Given the nature of its business, this is another safe haven stock to consider.

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