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Strategies & Market Trends : HONG KONG -- Ignore unavailable to you. Want to Upgrade?

To: Tom who wrote (1133)	1/19/1998 10:59:00 PM
From: Tom	Read Replies (2) \| Respond to of 2951

CHINA RESOURCES ENTERPRISES (Underperform) JP Morgan Securities, Jan 13, HK$10.15 China Resources Enterprises (CRE) has fallen 42 per cent over the last month. Despite this dramatic fall, we believe that it is too early to upgrade our recommendation because of the strong possibility of significant earnings downgrades. We are also concerned about CRE's significant exposure to US dollar borrowings. In view of the forex exposure concerns and the risks of significant earnings downgrades, we expect CRE to trade at a discount to blue-chip conglomerates and to the Hang Seng Index.