Image
Source: UOB Kayhian

Image
QDII fund managers at the event.

UOB Kayhian has put it pointedly: Overweight S-chips. Valuations are attractive. Investors' concerns over China's
economic slowdown have been overdone.

“It is time for smart money to move around,” added the stockbroker in a special report just released.

“We have upgraded S-chips from ‘market weight’ to ‘overweight’ primarily on attractive valuations.

Compared
with China domestic A-shares and H-shares, S-chips have been trading at deep discounts after a severe correction in 2H07.”

UOB Kayhian partnered leading investor relations company Financial PR to organize a Corporate Day in Shanghai last Friday (Mar 28) targeting at QDII fund managers.

The event featured nine S-chip companies that are leaders in their respective industries.

“Though they undergo cyclical growth, they have solid fundamentals and are growing rapidly. There is no doubt a few of them will eventually become respectable global enterprises.”

On a macro basis, China does face challenges such as soaring prices of commodities.

But UOB Kayhian pointed out that China has a closed financial system and strong domestic consumption, and will
be able to ride out this difficult period.

"We still believe China could
achieve 10% GDP growth and CPI growth of below 5.5%. A hard
landing and hyperinflation are unlikely to take place in China."

Full UOB Kayhian report, here.

You may also be interested in:


You have no rights to post comments

Counter NameLastChange
AEM Holdings2.3800.080
Avi-Tech Electronics0.265-
Best World1.7100.010
Broadway Ind0.095-0.001
China Sunsine0.390-
ComfortDelGro1.3700.010
Delfi Limited0.9400.010
Food Empire1.4300.010
Fortress Minerals0.260-0.020
Geo Energy Res0.355-0.005
GSS Energy0.027-
Hong Leong Finance2.4800.010
Hongkong Land (USD)3.060-0.090
InnoTek0.440-
ISDN Holdings0.320-
ISOTeam0.035-
IX Biopharma0.0460.005
Jiutian Chemical0.024-
KSH Holdings0.250-
Leader Env0.050-
Medtecs Intl0.1320.001
Nordic Group0.335-
Oxley Holdings0.0910.001
REX International0.138-0.008
Riverstone0.6700.005
Sinostar PEC0.135-
Southern Alliance Mining0.600-
Straco Corp.0.500-
Sunpower Group0.220-
The Trendlines0.085-
Totm Technologies0.021-
Uni-Asia Group0.800-0.015
Wilmar Intl3.330-0.030
Yangzijiang Shipbldg1.770-0.010
 

We have 1279 guests and one member online

rss_2 NextInsight - Latest News