(Sept 18): Even after a plunge in Hong Kong property shares following months of protests in the city, Eastspring Investments says some of the biggest stocks in the sector remain unappealing because of their valuations.
John Tsai, a portfolio manager in Singapore, trimmed his holdings of Henderson Land Development Co. and Sun Hung Kai Properties in July, and remains underweight on the sector. He cited expensive valuations and lower dividend yields relative to their peers and other sectors such as telecommunications.
“My view on Hong Kong property stocks is still cautious,” said Tsai, who manages almost US$1 billion ($1.37 billion) in Hong Kong equities and shares of Chinese companies listed in the city. “We are more value-biased and tend to focus on ‘cheaper’ stocks that seem to be overly beaten up and not appreciated.”
