Economics
Hong Kong Bears Sell Priciest Stocks Since ‘02, Buy China
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Some of the world’s biggest stock investors are shifting their China bets to mainland companies from Hong Kong after the city’s shares climbed to the most expensive levels in 12 years.
The MSCI Hong Kong Index traded at 16 times reported earnings at the end of June, versus a multiple of 9.8 for the MSCI China index, the widest gap since 2002. Hong Kong’s gauge has outperformed the China measure for four straight years, rallying 160 percent from its low amid the global credit freeze.