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Emerging market stock of the day: China Overseas Land and Investment

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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 align="alignright" 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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