Nine Ways to Invest in Hong Kong

Hong Kong is the financial center of the world. Here are some interesting facts about Hong Kong that might of interest to potential investors:

1. It is one of the two special administrative regions of the People's Republic of China, the other being Macau.
2. It was a dependent territory of the United Kingdom from 1842 to 1997.
3. It has the third highest population density in the world.
4. It is ranked 6th in terms of GDP per capital, which is higher than the U.K., France, Germany, Italy, and Japan.
5. It is ranked 22nd in term of the Human Development Index.
6. It has the highest concentration of corporate headquarters in Asia.
7. It is the wealthiest urban center in China.
8. Milton Friedman called Hong Kong a prime example of laissez-faire capitalism in practice.
9. According to the Index of Economic Freedom, it was ranked the world's freest economy for 13 years in a row.
10. It is the eleventh largest trading territory in the world.
11. The total value of imports and exports exceed its gross domestic product.
12. It has more consulates than any other city in the world.
13. The Hong Kong Stock Exchange is the fifth largest in the world.
14. It had more money raised through initial public offerings last year than any other place in the world except London.
15. It is the third-best financial center in the world, according to the Global Financial Centers Index.
16. Over 90 percent of its gross domestic product comes from services.
17. It is one of the Four Asian Tigers.

The following Hong Kong stocks trade either on the New York Stock Exchange, or the NASDAQ. Some of these companies are very large, while others are very small, and speculative.

Melco PBL Entertainment (Macau) Ltd. (MPEL) operates six Mocha Club casinos. It also has two projects under development, the Crown Macau Hotel Casino, and the City of Dreams casino. It has a P/E of 143.50, and an extremely high PEG of 163.50.

Asia Satellite Telecommunications Holdings Ltd. (SAT) provides broadcasting, telecommunications, Internet, and multimedia satellite transponder services to customers in Asia, the Middle East, Europe, and Australia. This New York Stock Exchange-traded company has a P/E of 12.74, and pays a decent yield of 3.7%.

China Netcom Group Corp. Hong Kong Ltd. (CN), provides broadband communications, and landline telecommunications services in China. This New York Stock Exchange stock, which is actually based in Beijing, has a P/E ratio of 9.4. The stock has been paying an annual dividend for the last three years.

City Telecom HK Ltd. (CTEL), provides telecommunications, Internet and pay television services throughout Hong Kong. This NASDAQ-traded company has generated negative earnings, but pays a yield of 2.2%.

CNOOC Ltd. (CEO) explores, and produces crude oil and natural gas in China. It owns four offshore oil fields in the China seas. This $44 billion company by market cap, which trades on the New York Stock Exchange, has a P/E of 10.7, and a yield of 3.3%.

Corgi International Ltd. (CRGI) , develops and sells collectible toys, gifts, and other products, including licensed toys for Batman, Disney Classics, Harry Potter, James Bond, Lord of the Rings, Pirates of the Caribbean, and Superman. This extremely low cap NASDAQ stock has generated negative earnings, and should be considered extremely speculative.

Grand Toys International Ltd. [GRIN] develops, manufactures, and sells toy and toy-related products, party goods, stationary, and accessories. around the world. This NASDAQ-traded company is very low cap, and as a result, should be considered very speculative. The company has been generating negative earnings.

Hutchison Telecommunications International Ltd. (HTX) provides mobile, and land line telecommunications services in Hong Kong, Macau, India, Israel, Thailand, Indonesia, Vietnam, Sri Lanka, and Ghana. This New York Stock Exchange stock, has an extremely high P/E of 260.43.

APT Satellite Holdings Ltd. (ATS), provides broadcasting and telecommunications satellite services to China and Asia. This stock, which has been generating negative earnings, has a very low market cap, and as a result is extremely speculative despitethe fact that it trades on the New York Stock Exchange.

ASAT Holdings Ltd. (ASTT) designs, and sells semiconductors. This NASDAQ stock, which has been generating negative earnings, has a very low market cap, and is therefore extremely speculative.

Disclosure: The author does not own any of the above.

Comments

[johnhhaskell]

Hong Kong is not the financial center of the world. Sorry.