Chinese &HK Stocks
What is your opinion on the following 2 Asian stocks which seem to be at an inflection point: Longfor (HK) and MGM (China). What is easiest way to invest in these as CommSec only allows US shares for the International Portfolio.
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Answer
Hi David,
In terms of transacting in shares traded on the Hong Kong market try Interactive brokers although I stress we haven’t used there services.
These are two stocks we are not familiar with at MM hence our feedback is technical in nature although we do like the risk/reward towards the broader index at current levels:
- Longfor Group (960 HK) – this real estate development stock has fallen around 80% from its 2021 and its still in the too hard basket in our opinion as Beijing attempts to prop up the sector. We would rather invest in copper stocks for exposure to this embattled sector improving moving forward.
- MGM China (2282 HK) — over the last 18-months this resort and casino business based in Macau has started to recover from an aggressive sell off, we like the risk/reward back around $10HKD.
