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Trade War Dampens Stock Mkt; Tencent Prospect Still Promising
Stanley Chik, research head at Bright Smart, said "Winter is Coming", a well-known line from the US TV drama series "Game of Thrones", is incredibly suitable for describing Hong Kong stocks last week. The market was hit hard by two headwinds - the reported results miss of TENCENT (00700.HK)  +5.000 (+1.190%)    Short selling $475.42M; Ratio 5.147%   , followed by Naspers' sharp share reduction; and potential China-US trade war. While global market was on bumpy ride, Hang Seng Index relapsed to 30,000 level.

As to whether Naspers' share disposal indicates its bearish view on TENCENT, Chik stated that the reduction is not clueless, given investors had been reportedly requesting Naspers to "do something" in past year; besides, the substantial shareholder guaranteed it would not trim stake for at least three years, reflecting it was not rush to slash stake. Lastly, the cut of only 2% at not-so-high discount suggested the full confidence of investors. Chik said he will continue to adopt "accumulate on adjustment" strategy.

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