Investors in China's soaring stock market are increasingly turning to Hong Kong for bargains, egging on an investment boom on the back of large tech listings and shaking off fears of political risks in the bruised financial hub.
The country's blue-chip CSI300 index hit five-year-highs in recent sessions on a state-endorsed rally and a retail trading frenzy.But Chinese investors and brokerages say they are increasingly drawn by Hong Kong shares, whose gains have been more modest. New York-listed Alibaba , which completed its Hong Kong listing last year, could get the greenlight to enter the benchmark Hang Seng Index next month.
With many more Chinese listings in the pipeline,"such investment opportunities can last for at least two years, potentially generating annualised returns of 20per cent," said Richard Li, general manager of Shanghai-based Regan Fund Management Co, which has been actively investing in such listings.