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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 b...
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HSI Company: Benjamin Graham's Investment Philosophy May Still Works in Current HK Mkt
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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 Graham’s philosophy may still be relevant to the recent Hong Kong equity market and could generate alpha income.

Related NewsRatings and TPs for BABA-W (09988.HK) (Table)
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)  -1.400 (-1.606%)    Short selling $723.18M; Ratio 24.039%  
CNOOC (00883.HK)  +0.340 (+2.021%)    Short selling $195.00M; Ratio 15.350%  
CHINA SHENHUA (01088.HK)  +0.450 (+1.353%)    Short selling $60.23M; Ratio 31.966%  
KUNLUN ENERGY (00135.HK)  +0.010 (+0.132%)    Short selling $1.33M; Ratio 2.201%  
COSCO SHIP HOLD (01919.HK)  +0.300 (+2.538%)    Short selling $23.98M; Ratio 9.572%  
CHINA FEIHE (06186.HK)  +0.040 (+0.714%)    Short selling $3.45M; Ratio 11.746%  
OOIL (00316.HK)  +1.800 (+1.685%)    Short selling $7.79M; Ratio 27.083%  
YANCOAL AUS (03668.HK)  +1.300 (+4.228%)    Short selling $159.42K; Ratio 1.736%  
3SBIO (01530.HK)  -0.040 (-0.693%)    Short selling $1.09M; Ratio 6.775%  
PACIFIC BASIN (02343.HK)  +0.040 (+1.990%)    Short selling $474.44K; Ratio 6.055%  
ZHONGSHENG HLDG (00881.HK)  +0.280 (+1.604%)    Short selling $32.57M; Ratio 21.394%  
WEIGAO GROUP (01066.HK)  +0.090 (+2.013%)    Short selling $2.57M; Ratio 21.325%  
AVICHINA (02357.HK)  +0.090 (+2.273%)    Short selling $5.99M; Ratio 16.232%  
CMS (00867.HK)  +0.100 (+1.314%)    Short selling $461.15K; Ratio 5.603%  
YUEXIU PROPERTY (00123.HK)  +0.090 (+1.544%)    Short selling $6.33M; Ratio 17.338%  
UNITED LAB (03933.HK)  -0.140 (-1.375%)    Short selling $2.91M; Ratio 38.543%  
CHINFMINING (01258.HK)  +0.050 (+1.004%)    Short selling $17.11M; Ratio 60.982%  
ZOOMLION (01157.HK)  +0.020 (+0.394%)    Short selling $2.54M; Ratio 8.668%  
SHOUGANG RES (00639.HK)  +0.050 (+1.887%)    Short selling $810.12K; Ratio 17.406%  
FLAT GLASS (06865.HK)  +0.180 (+1.435%)    Short selling $7.83M; Ratio 8.079%  
LUK FOOK HOLD (00590.HK)  +0.200 (+1.359%)    Short selling $329.00K; Ratio 19.843%  
SHANGHAI IND H (00363.HK)  +0.160 (+1.386%)    Short selling $819.44K; Ratio 17.408%  
CIMC ENRIC (03899.HK)  +0.070 (+1.059%)    Short selling $27.00K; Ratio 1.726%  
SINOPEC KANTONS (00934.HK)  +0.140 (+3.241%)    Short selling $1.12M; Ratio 13.888%  
PAX GLOBAL (00327.HK)  -0.060 (-1.202%)    Short selling $9.95K; Ratio 3.454%  
CH OVS G OCEANS (00081.HK)  +0.030 (+1.604%)    Short selling $648.74K; Ratio 18.772%  
JIUMAOJIU (09922.HK)  +0.010 (+0.302%)    Short selling $2.45M; Ratio 13.956%  
361 DEGREES (01361.HK)  +0.010 (+0.265%)    Short selling $503.64K; Ratio 15.568%  
ASIAINFO TECH (01675.HK)  +0.090 (+1.565%)    Short selling $393.58K; Ratio 5.921%  
EEKA FASHION (03709.HK)  +0.030 (+0.350%)    Short selling $107.68K; Ratio 1.372%  
TIANGONG INT'L (00826.HK)  0.000 (0.000%)    Short selling $664.08K; Ratio 10.556%  
SHINEWAY PHARM (02877.HK)  -0.080 (-0.951%)    Short selling $199.70K; Ratio 19.506%  
THEME INT'L (00990.HK)  +0.005 (+1.124%)    Short selling $909.70K; Ratio 22.226%  
BOE VARITRONIX (00710.HK)  0.000 (0.000%)    Short selling $619.95K; Ratio 17.559%  
NISSIN FOODS (01475.HK)  +0.100 (+2.188%)    Short selling $27.68K; Ratio 5.230%  


(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-11-18 12:25.)

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