HK themes/stocks

Key HK themes/stocks to watch in the HK Rally: Maybank TV interviews Benny Wong, Head of Retail Research HK, on the recent HK Rally.

The video has been uploaded on youtube and can be accessed via the link below:
https://www.youtube.com/watch?v=4_iZwb1j9cM&feature=youtu.be


Summary
Key stocks: 1186 HK, 323 HK, 688 HK

H Shares valuations still reasonable: Trading at 9.5x P/E versus Shanghai’s 16x. Although expect a volatile trading market going forward.

Recommend investors avoid railway equipment maker stocks: Too late to buy in now.

Shorter term investors can consider contractors & building materials (steel) stocks: Both sectors to benefit from China's one belt one road policy. Preferred picks are 1186HK, 323HK

Longer term investors can consider Chinese banks and Properties:
1) Banks at 6x P/E and 4-5% yield – Look out for improving NPLS which could catalyze share price. This could come in 2H15

2) Chinese Property at 40-50% discount to NAV – Recommend developers with exposure in tier 1 cities and look out for increase in ASPs. 688 HK preferred pick.