Hang Seng Update

The Hang Seng Index broke out of its 200 day moving average on 23 Apr 08. The index is currently in "Accumulation" phase.






The chart is showing more strength for Hong Kong then Shanghai. The Shanghai Composite Index is still in "Bearish" mode. If you are keen to invest in the China story, it may be better to park your cash in Hong Kong. In terms of valuation, H-shares listed in Hong Kong are more attractive than the A-shares listed in China.


Currently the 300 member CSI 300 is still valued at 22 times earnings estimates for this year whereas Hang Seng China Enterprise Index is trading at 16 times earnings estimates.