HK Near Bottom

Yesterday 3 July 2008, the Hang Seng Index (HSI) was down 2.1% to 21,242 with most stocks at 52 week low. At this level, stocks are trading at an average P/E is 13% with dividend yield is 3%, very close to historical lows.

The market has retreatced almost 5,000 points from the mid May high and may be due for a rebound. We have tested the 21,000 support level 3 times and it appears to be holding.

Accumulate China stocks with strong stories and earnings.