HK market is the happening place

The introduction of "H share holistic circulation" (H股全流通) and "shareholding rights" (同股不同权) reforms by the Hong Kong Stock Exchange will give Hong Kong stocks two extra weapons as far as the mainland investors are concerned.

Holistic circulation of H-shares means that mainland domestic-funded shares that could not be traded in the Hong Kong stock market previously will become tradable. This reform will involve funds with a total market capitalization of about HK$2.6 trillion, and most of them belong to State-owned shares. The total circulation of H shares will provide the China government a channel to solicit funds from investors from the HK Stock Exchange. Apparently, it is far-fetched that the China government would want to see a stock market plunge or any turmoil in the HK stock market this year to undermine their golden plan.

Currently, it is even more pressing to introduce the reform of accommodating different rights in the same share of a stock, otherwise the giant new economy stocks, such as Alibaba and Baidu before the reform, will go for IPO in the United States.

HKEx (388.HK) has been tasked with this national mission to get the most promising stocks to be listed in the HK Stock Exchange. If there is a crash in the HK market, the mission of HKEx is difficult to be accomplished.

Singapore Stock Exchange (SGX) has also announced its intention to introduce dual-class shares and unveil debt issue plans. But HKEx is definitely ahead of the game with Shanghai-HK Stock Connect （沪港通）and Shenzhen-HK Stock Connect （深港通） and its total market capitalisation is more than five times that of SGX's. 

HKEx (388.HK) daily chart: Bullish!

From fundamental analysis, the valuation of HK stocks is still cheap. When HSI was at its peak of 31,908 in 2007, the average p/e was 21.5x. The average p/e of today’s HSI of 32,254.89 is only 15x. The earnings yield is 6.67% which is much higher than the risk-free fixed deposit interest rates with commercial banks. 

The current uptrend of the stock market bellwether, 388.HK, is the confirmation of the bullishness of the HK market which has been and will be the happening market for a long time to come.  There are still laggards to be picked for the bullish ride. Read my earlier posts to get some of them, e.g. 717.HK, 2828.HK,  85.HK and 6166.HK.

I strongly believe that any pullback will be an opportunity for investors to jump on the fast-moving bandwagon. Happy investing!

Superphang

https://superphang.blogspot.sg

Promising Stocks in the HK Stock Market

Emperor Capital (717.HK)

Emperor Capital (717.HK) broke above the BIG cup with good volume amid the background of crazy surges in HK listed brokerages today and the bellwether HK Exchange (388.HK) since the start of 2018. The speed of surge will rise even faster from here with many positive factors being developed in HK stock exchange and funds flowing from mainland China to the HK market.

See my two earlier posts on 717.HK:

https://superphang.blogspot.sg/2017/10/get-good-dividend-while-waiting-for.html dated 18 Oct 2017:

and

http://superphang.blogspot.sg/2017/12/stellar-fy2017-earnings-performance-of.html dated 7 Dec 2017

I still maintain my target price of $1 by 28 February 2018.

HS H ETF (2828.HK)

See my earlier post on 2828.HK:
https://superphang.blogspot.sg/2017/08/time-to-invest-into-hk-etfs.html dated 6 Aug 2017.

HS H ETF (2828.HK) closed at $132.1 today, 18 Jan 2018. The surge since the start of the year is 11.76%. As most of its big market cap component stocks will be included in the basket of 222 large cap A-shares which are soon to be included into MSCI EM index in June this year, there is still quite a distance for it to run before it hits my target price of $138. Hold it tight so that you can enjoy the quick spike of this 9G-force fighter jet!

2828.HK daily chart at the closing of 18 Jan 2018

Conclusion

The impending US interest rates hike, the next probably in June, will help stock markets all over the world to keep breaking new highs as it just shows that the economy is booming. Make no mistake: As long as the US Federal Reserve is still contemplating to hike the interest rates, keeping your money in the stock market is the right move.

When you have acted based on these key leading indicators, merely sitting and waiting will make you rich!

Superphang
https://superphang.blogspot.sg

KKK of Federal bought shares again

Koh Kian Kiong, Executive Chairman and CEO of Federal Int(2000) Ltd, bought 233,300 shares on 9 Jan 2018 at S$0.39429 per share for a total outlay of $91,988, increasing his shareholding in the company to 19.31%.

老板时不时吃货

死股即将会复活

如果你还没满仓

良机将白白错过

I am patiently waiting for good news to be announced.

Superphang
https://superphang.blogspot.sg