Showing posts with the label Hong Kong

HKEX and Hong Kong Market


Initial thesis :  Cyclical play with a Moderate growth story originating from Hong Kong Stock and Bond connect and increased liberalization of China Market and CNH/CNY. Company is cheap from a historical  PE perspective. There is a margin of safety resulting from adverse market sentiment  contrasted by strong bottom up performance. Monopoly in a growing financial market, as investors utilize Hong Kong as a gateway to China market. Management has reported record profits and earnings for first 9 months. Stock is expensive from historical PE perspective but looking at its earning profile, earnings growth is expected to sharply increase, and other metrics are considered cheap. Initiate position of one lot (high conviction play) and seek to average up /down as the trade war plays along. Have initiated at around HKD210-220 and monitor for future developments.

Lines of businesses
1) The Cash segment covers all equity products traded on the Cash Market platforms, the Shanghai Stock E…