Do not miss the chance to catch Dr. Chan at the upcoming Shares Investment Conference in November!
Last week, there were two major occurrences in China and Hong Kong. First, the Chief Executive of Hong Kong Carrie Lam, formally withdrawn the contentious extradition bill. The other was the signal to the real cost of borrowing in Mainland China by Premier Li Keqiang during a state council meeting.
Overall, Dr. Chan opines that the cutting of bank’s reserve requirement ratio (RRR) in China will further support its cause to combat the US in a prolonged trade war. The effects will also extend towards China equities. For the time being, Shanghai A-shares will likely outperform its HK counterparts.
For local investors that are not too familiar with China’s equities, they could consider looking at H-shares of Chinese companies with A-shares in China as well. Some of these notable companies include, China Life Insurance (2628.HK), China Communications Construction (1800.HK), China Railway Group (0390.HK) and China Railway Construction Corp (1186.HK).
In addition, stocks of Mainland brokerages such as Haitong Securities (6837.HK), CITIC Securities (6030.HK) and China Merchant Securities (6099.HK) are worthy investment considerations. Their earnings performance, reported in August, were rather positive as well.
The RRR cut will also indirectly encourage Chinese investors to buy real estate. As there are many real estate stocks in the Chinese stock market, investors be cautious when selecting real estate stocks to ride this trend. He suggested that investors those who performed better in the first half of this year, will have a relatively higher chance of maintaining their performance in the second half of the year.
Apart from that, HK-listed property developers with significant exposure in the Mainland’s retail sector could also ride on the Chinese government’s desire to boost domestic consumption. These companies include Hang Lung Group (0010.HK), Hang Lung Properties (0101.HK), Wharf Holdings (0004.HK), Sun Hung Kai Properties (0016.HK), New World Development (0017.HK) and Yuexiu REIT (0405.HK).
Our favourite GURU, Dr. Chan Yan Chong Is BACK! Best known for forecasting the peaks and troughs in the stock market cycle, Dr. Chan will share his foresight on various stock markets’ performances at Shares Investment Conference 2H19! Learn from The GURU himself and chart a smooth investment journey!