Nomad Investors

As Citigroup raised the average target price of China property stocks, the sector saw an uptick today. The two blue chips HINA RES LAND (01109.HK)    +1.700 (+7.010%)       Short selling $13.38M; Ratio 4.580%      and CHINA OVERSEAS (00688.HK)    +1.550 (+5.373%)       Short selling $52.20M; Ratio 9.182%      , which are regarded as Top Picks by the broker, hit the high at $25.9 and $30.35, and last traded at $25.75 and $30, up 6.2% and 4% respectively. SUNAC (01918.HK)    +0.970 (+11.589%)       Short selling $11.14M; Ratio 5.328%      , also selected as Top Pick, surged 10% to $9.22, with volume rising to 27.86 million shares.  KWG PROPERTY (01813.HK)    +0.590 (+8.526%)       Short selling $6.75M; Ratio 8.320%      last gained 7.8% to $7.46. GREENLAND HK (00337.HK)    +0.500 (+8.591%)       Short selling $1.09M; Ratio 1.317%      and POLY PROPERTY (00119.HK)    +0.300 (+6.928%)       Short selling $3.54M; Ratio 3.043%      bounced 6.5% and 5.3% to $6.2 and $4.56 respectively.  SINO

UBS released its report on Hong Kong strategy yesterday (19 April). The research house believed that the Hong Kong stock market will undergo sharp correction following the China Securities Regulatory Commission (CSRC) announcement on restriction of umbrella trust and OTC margin financing. The CSRC also expanded the number of Chinese stocks for short selling to 1,100. It is convinced that the HSI has become overbought with 12-month forward PE reaching 3.8x standard deviation above its 3-year average and the recent growth momentum will not be sustainable.   LI & FUNG (00494.HK)    -0.150 (-1.868%)       Short selling $7.86M; Ratio 13.631%      , CHOW TAI FOOK (01929.HK)    -0.180 (-2.079%)       Short selling $3.17M; Ratio 24.774%      , SA SA INT'L (00178.HK)    -0.080 (-1.951%)       Short selling $1.31M; Ratio 12.341%      , GIORDANO INT'L (00709.HK)    -0.110 (-2.842%)       Short selling $782.14K; Ratio 22.046%      , SANDS CHINA LTD (01928.HK)    -0.850 (-2.500%)   

Hong Kong stocks traded mixed in morning session after snapping an eight-day gain yesterday (14 April). Hang Seng Index opened 131 pts higher this morning, once hitting the high at 27,807. It closed the morning session at 27,547, down 13 pts or 0.05%. Hang Seng China Enterprises Index gained 103 pts or 0.73% to 14,368. Market turnover amounted to $116.566 billion. HKEX (00388.HK)    +1.200 (+0.420%)     Short selling $945.00M; Ratio 24.005%    advanced 0.5% at midday to $287. TENCENT (00700.HK)    -5.200 (-3.226%)     Short selling $544.55M; Ratio 15.369%    receded 2.6% at $157. Of all the blue chips, CHINA MOBILE (00941.HK)    -3.300 (-3.019%)     Short selling $215.63M; Ratio 9.927%    dragged down 3.1% to $105.9. CHINA UNICOM (00762.HK)    +0.100 (+0.737%)     Short selling $5.15M; Ratio 1.182%    and CHINA TELECOM (00728.HK)    +0.080 (+1.423%)     Short selling $4.83M; Ratio 2.055%    inched up 0.4% and 0.7%, while HSBC HOLDINGS (00005.HK)    +0.200 (+0.283%