Hong Kong stocks are a winning trade, investors say, as worries over pricey A-shares and favorable policy announcements send mainland investors bargain hunting down south.
The benchmark Hang Seng Index shot up 4 percent to its second straight seven-year peak on Thursday, playing catch up to the Shanghai Composite’s recent string of seven-year highs. Year-to-date, Shanghai is up 23 percent and the Hang Seng 11 percent higher, but between the two analysts say Hong Kong offers better value.
“China stocks are no longer cheap. The momentum is in place, so let’s see whether it starts moving into bubbly valuations,” Roger Tan, CEO of Voyage Research, told CNBC