Last week's HK local press had a lot of negative headlines.
This is in-line with several smaller and value oriented fund managers I know who invest in small and mid-cap Asian stocks. As expected several of them are seeing more buying opportunities, and/or running high net exposures (i.e. buy when others are fearful, sell when others are greedy).
Below are some SCMP (www.scmp.com) headlines found in last Monday's edition:
- "Warning on Risk of Property Bubble - Hong Kong's Finance Chief says the price of flats has not fallen to a satisfactory level - but he does not say what they should be, or if there will be more cooling measures"
- "Currencies - Fears Capital is Fleeing Mainland - Foreign exchange purchases enter negative territory for the first time in four years"
- "Global economic conditions remain grim, and ensuring economic recovery is the priority", China Vice-Premier Wang Qishan
- Asia - "Regional Tale of Gloom and Doom - Economic data tells a story of weak growth, and expectations are that things will only get worse (See below)
- "Like a Ton of Bricks - Hong Kong Property Prices Could Be Poised For A Large Fall In Value" - (28 Nov 2011 SCMP