Asian markets were particularly active today, with Hong
Kong-listed China Overseas Land and Investment (
CAOVY
,
quote
) helping to
lead the Hang Seng higher in Tuesday trading
.
[caption id="attachment_68950" align="alignright" width="300"
caption="Hong Kong property developers like China Overseas Land and
Investment continue to outerpform their Mainland counterparts"]
[/caption]
Most Asian markets were able to finish the second trading day of
the week higher, with Hong Kong (
EWH
,
quote
) and Taiwan (
EWT
,
quote
) leading the way, up more than a percent each. In particular, real
estate stocks with Chinese exposure outperformed. However, the
Shanghai Composite's (
FXI
,
quote
) continued weakness remains intact. Even though the index has
plenty of property companies, the Chinese benchmark index was
unable to finish the day in the green.
In particular, Hong Kong real estate developers were boosted by
rumors of global stimulus from a host of central banks. The
thinking goes that a healthy global economy will buoy slowing
growth in the Chinese economy which would in turn bolster the
property sector. However, because
Chinese retail investors have seemingly lost their faith in the
stock market
, it is the developers listed in Hong Kong that are seeing the
benefits.
One such developer is China Overseas Land and Investment. This
Hong Kong blue chip engages in a number of activities, from
consulting and construction to property development and
infrastructure investment. Evidently, China Overseas Land and
Investment stands to benefit from an increase in stimulus from the
Chinese government given Beijing's tendency to invest stimulus
dollars in infrastructure projects.
As a result of these stimulus hopes, China Overseas Land and
Investment
finished 1.66% higher
in Hong Kong trading. Although the company's primary listing is in
Hong Kong, American investors can access China Overseas Land and
Investment shares via the pink sheets in the United States. If
China decides to enact more stimulus aimed at infrastructure and
property sector growth, investors could expect a further pop in the
shares.
