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

To: allen menglin chen who wrote (1159)	1/22/1998 11:26:00 AM
From: Tom	Respond to of 2951

Re: "ShanDong...is trading 50% of its book value." The poor sentiment where the China markets are concerned has deflated many stock prices far below their fair value. Purchasing these stocks at the moment is an exercise in faith. Many have little or no faith. The local sentiment...well, I cringe at reading the front page of the dailies anymore. Several years ago I believed very strongly in the Chilean economy and its managers. It did not require a stroke of genius to buy that market as its foundation was solid and local sentiment was unflappable. As far as day-trading goes, I at one time day-traded Ek Chor China. I followed it very closely, as you do ZNH. It can get hectic. My sights are on only two more stocks in China -- Founder and Li & Fung. Li & Fung has been unshakeable. It just does not want to fall. Though should it, I will be there to buy. Founder is a computer hardware/software enterprise that will round-out that sector for me. After China, I must look at Malaysia. The cash-rich Genting Berhad appears very attractive, as does Malaysian International Shipping. I am holding some M.I.S.C. and may accumulate a little more. They don't have the currency exposure that many do, but have been purchasing more vessels recently. I must dig for new numbers. Sime Darby Group is another one, reacting very quickly to the upside on any good news. It is extremely popular. A favorite of fund managers for many years, Sime has been criticised at times for its conservative style. Though they are not nearly as stuffy as once was the case. Perlis Plantations and KL Kepong also deserve a look. For some reason I like Malaysia's chances. Didn't mean to go on like that. And, I will get to studying China's aviation sector one day. Too little time, too much of the time. Tom

To: allen menglin chen who wrote (1159)	1/22/1998 11:52:00 AM
From: RealMuLan	Respond to of 2951

<< If you look at the China ADRs in NY, which one is close to its IPO price? I would say CHL is not too far off.

To: allen menglin chen who wrote (1159)	1/23/1998 3:20:00 AM
From: Tom	Read Replies (2) \| Respond to of 2951

Brokerage charts tough course for Asian airlines. ASIAN airlines require tight cost and capacity management to survive in 1998, Salomon Smith Barney says in a review of the industry in the region. The brokerage cut its profit forecast for two mainland-based airlines - China Eastern and China Southern. It also said Cathay Pacific Airways was expected to underperform. "Further deterioration in operating conditions could push Cathay into losses in the first half 1998," it said. "Both 1997 and 1998 are set to become Cathay's worst years on record." hkstandard.com