Kenny Tang Hares Quotations

Weakness in overseas and regional markets affected trading, dragging down blue chips and H shares early.

Investors are buying property shares ahead of results. Most expect the results to be strong on the back of contributions from new (property) developments which should have contributed to earnings in the six months to December.

Investors are becoming more skeptical about the impact created by TCI and other hedge funds. They realize the shares could rise quickly in anticipation that the hedge funds might increase their holdings, but they are also wary of the potential for sharp falls when these hedge funds exit the market.

The rise in property stocks was due to a technical rebound. These shares will come under further pressure as property sales are expected to slow in 2006 from a year earlier.

The low valuation coupled with the investor's enthusiasm over new shocks could push the shares up 30 to 40 per cent on the debut. However, the problem of overcapacity in the cement industry could cause uncertainty over the long-term prospect of the stock.