HSI Company: Benjamin Graham's Investment Philosophy May Still Works in Current HK Mkt

　　Hang Seng Indexes Company wrote that based on the investment philosophy of Benjamin Graham, widely known as the “father of value investing”, it screened the Hong Kong broad market (represented by the HSCI) using a set of 7 criteria to identify a basket of value stocks, namely quality, financial leverage, liquidity, earnings growth, P/E ratio, P/B ratio, and dividend.

　　From 10-year backtesting, the rolling value basket (market cap-weighted) outperformed the broad market by 8.6 percentage points, in terms of annualised total return. This suggested that Grahams philosophy may still be relevant to the recent Hong Kong equity market and could generate alpha income.

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　　Among the 36 non-financial stocks in the value basket, HSI and HSCEI coverage on the screened stock represented 18% and 19% weightings of the index non-financial portion respectively as of 19 July 2024. The Hang Seng Indexes Company commented that for exposure to Hong Kong blue chips, HSI should be an excellent choice, while for exposure to China, HSCEI would be the leading performance tracker of Hong Kong-listed mainland China companies.

　　The 36 stocks in the value basket as screened by the Hang Seng Indexes Company are:

　　BABA-SW (09988.HK) -0.650 (-0.870%) Short selling $359.02M; Ratio 16.416%

　　CNOOC (00883.HK) -0.100 (-0.489%) Short selling $431.58M; Ratio 20.518%

　　CHINA SHENHUA (01088.HK) -0.100 (-0.301%) Short selling $125.19M; Ratio 39.102%

　　KUNLUN ENERGY (00135.HK) -0.130 (-1.585%) Short selling $9.34M; Ratio 15.600%

　　COSCO SHIP HOLD (01919.HK) 0.000 (0.000%) Short selling $16.75M; Ratio 6.660%

　　CHINA FEIHE (06186.HK) -0.060 (-1.671%) Short selling $1.27M; Ratio 5.845%

　　OOIL (00316.HK) +0.400 (+0.371%) Short selling $23.51M; Ratio 34.810%

　　YANCOAL AUS (03668.HK) -0.150 (-0.425%) Short selling $1.93M; Ratio 11.364%

　　3SBIO (01530.HK) -0.070 (-1.082%) Short selling $567.42K; Ratio 3.370%

　　PACIFIC BASIN (02343.HK) +0.030 (+1.310%) Short selling $1.81M; Ratio 5.939%

　　ZHONGSHENG HLDG (00881.HK) -0.180 (-1.440%) Short selling $14.24M; Ratio 30.215%

　　WEIGAO GROUP (01066.HK) -0.080 (-1.966%) Short selling $13.07M; Ratio 34.232%

　　AVICHINA (02357.HK) -0.120 (-3.217%) Short selling $3.02M; Ratio 11.461%

　　CMS (00867.HK) -0.100 (-1.504%) Short selling $2.13M; Ratio 9.421%

　　YUEXIU PROPERTY (00123.HK) +0.010 (+0.185%) Short selling $12.83M; Ratio 27.768%

　　UNITED LAB (03933.HK) -0.040 (-0.472%) Short selling $4.68M; Ratio 24.523%

　　CHINFMINING (01258.HK) -0.090 (-1.673%) Short selling $5.56M; Ratio 9.511%

　　ZOOMLION (01157.HK) -0.110 (-2.361%) Short selling $5.76M; Ratio 17.345%

　　SHOUGANG RES (00639.HK) -0.050 (-1.754%) Short selling $4.33M; Ratio 15.647%

　　FLAT GLASS (06865.HK) -0.320 (-2.827%) Short selling $13.24M; Ratio 29.492%

　　LUK FOOK HOLD (00590.HK) -0.100 (-0.654%) Short selling $1.32M; Ratio 13.992%

　　SHANGHAI IND H (00363.HK) -0.220 (-1.897%)

　　CIMC ENRIC (03899.HK) +0.100 (+1.433%) Short selling $1.54M; Ratio 3.301%

　　SINOPEC KANTONS (00934.HK) +0.030 (+0.730%) Short selling $1.67M; Ratio 6.680%

　　PAX GLOBAL (00327.HK) -0.030 (-0.652%) Short selling $147.42K; Ratio 3.158%

　　CH OVS G OCEANS (00081.HK) -0.060 (-3.488%) Short selling $457.88K; Ratio 6.665%

　　JIUMAOJIU (09922.HK) -0.140 (-4.575%) Short selling $12.34M; Ratio 19.644%

　　361 DEGREES (01361.HK) -0.030 (-0.817%) Short selling $1.13M; Ratio 11.559%

　　ASIAINFO TECH (01675.HK) -0.190 (-3.838%) Short selling $1.17M; Ratio 16.762%

　　EEKA FASHION (03709.HK) +0.100 (+1.124%) Short selling $220.56K; Ratio 2.299%

　　TIANGONG INT'L (00826.HK) -0.060 (-3.390%) Short selling $855.00K; Ratio 15.575%

　　SHINEWAY PHARM (02877.HK) -0.030 (-0.379%) Short selling $95.40K; Ratio 2.844%

　　THEME INT'L (00990.HK) -0.020 (-4.301%) Short selling $135.80K; Ratio 4.255%

　　BOE VARITRONIX (00710.HK) -0.110 (-2.461%) Short selling $118.20K; Ratio 4.133%

　　NISSIN FOODS (01475.HK) -0.090 (-1.915%) Short selling $119.90K; Ratio 7.139%

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-23 16:25.)

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