Wanguo: Optimistic about the second half of Hong Kong Chinese stocks

Yesterday, in Hong Kong Wanguo "Invest in China" seminar, the Wanguo Research institute that the U.S. and China economy has been the worst time, in the financial easing and the new four major economic growth driving force, the second half of the Hong Kong Chinese stocks will still perform well. Wanguo The purpose of this meeting is to recommend to global institutional investors the investment opportunities and investment strategies of Hong Kong Chinese stocks.　　200 fund managers from around the world participated in the symposium. The Wanguo Institute believes that the driving force leading China's economy out of trouble in the coming years comes from government infrastructure investment, power grid improvement, urbanization restart and consumption rise.　　The new four drivers will generate huge impetus for sectors such as consumption, infrastructure and commodities, and thus raise the value of investment in the Hong Kong-listed Chinese companies.　　According to the Shenwan Institute estimates that this year's consumption, infrastructure, commodities industry, the overall profit growth of 9.8%, and the early forecast of only 5.8%, which will greatly improve the Hang Seng state-owned enterprises index reasonable points. Wanguo also judged that both China and the U.S. economy are already at their worst and are slowly recovering. Compared with the historical average, the relative valuation of HSI is not very significant. Although PE may be high, but in the economic recovery period, PE can give a little higher. At the same time, with the expected depreciation of the dollar and the continued infusion of liquidity from the Hong Kong Monetary Authority, the easing of capital will not change in the next six months.　　Therefore, the second half of Hong Kong's Chinese stocks are still optimistic, the results of the DDM model shows that Hong Kong's Chinese stocks will also have 20% of the rising space.　　Combined with long-term and short-term factors, the Institute recommends matching steel, automobiles, real estate, banking, power equipment, optional consumer goods, coal and software. Shenwan Research Institute thinks, the ultra match the car, lie in bullish car consumption blowout. Super Real Estate, in its second half of the catalyst mainly from the investment restart, land purchase and the annual start of the plan to readjust. But real estate, automobile and other downstream demand rise, will lead to steel demand rebound, price recovery. As the economy recovers, infrastructure and industrial shifts will keep China's overall economy growing at a faster pace, helping to ensure bank performance.　　Meanwhile, as the economy picks up, China's demand for electricity will continue to remain strong, which will help power equipment companies to grow orders. At this meeting, Shen million Institute from the benefit of the new economic driving industry, and then combined with the valuation of Hong Kong's top Ten "winners": Franshion Real Estate (HK817), Ocean Real Estate (HK3377), Yurun Food (HK1068), Oriental Electric (HK1072), CNOOC Clothing (HK2883), Li Ning (HK2331), Chengdu High-speed (HK107), Jiangxi Copper (HK358), CNOOC (HK883), Citic Bank (HK998).