HanKore, Sunvic & China XLX

Small- Caps: CIMB note that Ten years since the influx of S-chips, many will recall the string of accounting shenanigans and trading suspensions that defiled the sector. A few investors, on the other hand, may hold fond memories of the various classic privatisation plays that were accompanied by share-price surges. The house take a look at three different approaches for reinvesting in some of the surviving names. The house think the environmental theme has legs, as do asset spin-offs with due diligence by institutions rewriting their intrinsic values. The biggest catalysing event has often been an exit from the local bourse by dual-listed names, especially when offered prices are significantly lower than their trading valuations in Hong Kong. Peferred picks in this space would be HanKore, Sunvic and China XLX.