Hong Kong Equity
We have been actively investing in the Hong Kong equities, through various market cycles since 1987. Our Hong Kong equities strategy is part of our Asian equity strategies that provide investors with access to the structural and economic growth in the region. We aim to achieve medium to long-term risk-adjusted returns through a bottom-up investment approach and strong fundamental focus.
We believe that there is a well-established relationship between profitability and valuation, and that excess market volatility often leads to mispricing of stocks
Employing rigorous fundamental research, we actively identify and position for mispricing opportunities as we believe market reverts to its intrinsic value over time
With disciplined investment process and long-term horizon, we seize opportunities and enhance returns by overweighting in profitable companies at below-average valuations
We utilise our proprietary portfolio management tool to screen out and rank stocks with attractive combination of valuation and profitability from a universe customised to the benchmark
The top ranked stocks are then thoroughly analysed by our research analysts, who are well supported by not only the global team, but also our domestic joint venture in China
The most attractive stocks are included in the portfolio using both a bottom-up implementation process and a top-down risk control framework
Adhering to HSBC's global standard, we constantly monitor and assess the risk of the portfolio and its holdings
Why this strategy?
We managed through a disciplined and repeatable investment process which is driven by strong governance with focus on transparency and conceptual clarity.
The strategy is benefitting from goodwill and strong relationships that come with being a part of the HSBC Group, and our strong insight into client needs through on-the-ground presence.
Our investment teams are equipped with deep experience and draw on local market resources, knowledge and insights. Our China & Hong Kong team consists of 2 dedicated portfolio managers with 20 years of average investment experience, a 5-member research team in Hong Kong and a 26-member Chinese equity team from HSBC Jintrust in China. The core China & Hong Kong equity team is further supported by a broad investment network including a 15-member Asian regional team and an 8-member BRIC/GEM team.
The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Where overseas investments are held the rate of currency exchange may also cause the value of such investments to fluctuate.