HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>The cheap valuations of the Hong Kong market have driven an increase in privatisation activities. Stocks with profit, high net cash, and low P/B are likely candidates.</li>
<li>We discover 29 stocks with net cash more than their market capitalisation while having a P/B of below 0.5x. Many of them are small-cap stocks.</li>
<li>The cheapest five names are trading on P/B of no more than 0.2x. Also, six stocks have their major shareholders owning a significant 75% stake.</li>
</ul>


The cheap valuations of the Hong Kong market have driven an increase in privatisation activities. Stocks with profit, high net cash, and low P/B are likely candidates.
We discover 29 stocks with net cash more than their market capitalisation while having a P/B of below 0.5x. Many of them are small-cap stocks.
The cheapest five names are trading on P/B of no more than 0.2x. Also, six stocks have their major shareholders owning a significant 75% stake.


China & HK Strategy: Are These Stocks Potential Privatisation Targets?

Hong Kong

Oneconnect Financial Technology Co., Ltd. software as a services. The Company offers technological applications for financial institutes such as digital transformations, revenue increase, and risk management. Oneconnect Financial Technology serves customers in China.

Oneconnect Financial Technology (6638 HK)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

China & HK Strategy: Are These Stocks Potential Privatisation Targets?

​Hong Kong market sees a rise in privatisation as cheap valuations attract investors. We developed a list of 29 stocks attractive for potential...

Osbert Tang, CFA

Hong Kong market sees a rise in privatisation as cheap valuations attract investors. We developed a list of 29 stocks attractive for potential...