[ET Net News Agency, 26 June 2018] Morgan Stanley has recently cut its HK/China equity
index targets and are now forecasting a bear market.
The research house identified: (1) stock names that are defensive and likely to
outperform the Hang Seng index as the market faces further downside risks; and (2)
HK/China stocks that investors should avoid in a USD strengthening and/or US-China trade
negotiation uncertainty scenario.
Defensive stock picks:
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(00011) Hang Seng Bank
(00823) Link REIT
(00014) Hysan Development
(00778) Fortune REIT
(06823) HKT Trust and HKT Ltd.
(00008) PCCW Ltd
(00215) HTHKH
(00315) SmarTone Telecommunication
(02638) HK Electric Investments
(00386) China Petroleum & Chemical
(01818) Zhaojin Mining
(00016) Sun Hung Kai Properties
(01972) Swire Properties
(00002) CLP Holdings
(01193) China Resources Gas Group

Stocks to avoid:
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(01898) China Coal Energy
(02600) Aluminum Corp. of China
(00960) Longfor Properties
(00813) Shimao Property
(03383) Agile Group Holdings
(00817) China Jinmao Holdings Group
(01813) KWG Property Holding Limited
(03883) China Aoyuan Property Group
(01478) Q Technology Group Co Ltd
(00135) Kunlun Energy
(01171) Yanzhou Coal
(00288) WH Group
(02689) Nine Dragons Paper
(02314) Lee & Man Paper Manufacturing
(03320) China Resources Pharmaceuti
(00012) Henderson Land
(00683) Kerry Properties
(03383) Agile Group Holdings Ltd
(02777) Guangzhou R&F Properties
(00285) BYD Electronics
(00144) China Merchants Port Holdings
(00753) Air China Limited
(00152) Shenzhen International Holding
(00670) China Eastern Airlines
(01055) China Southern Airlines
(01199) COSCO SHIPPING Ports
(00694) Beijing Capital International Airport
(01919) COSCO Shipping Holdings
(02688) ENN Energy Holdings
(00836) China Resources Power

(KL)