> Yesterday, a 3rd QDII fund was approved. What was significant was that
> Jiashi Fund Management Co is the first QDII to be allowed to invest in
> Chinese companies (defined as having at least 50% of its revenues from
> China) listed on the SGX and in the US.? We saw what happened to the HK
> market when it was announced that QDII funds could invest in HK. The
index
> is already up 32% from the sub-prime crisis lows even before a single
QDII
> dollar has been invested.? Real money of US$48bn is expected to flow in
> for
> 2008. If 10% flows into the S shares, this translates to 12% of the
> US$40bn
> S-share market. The S shares have been underperforming even the STI, much
> less its H share peers. Whilst the STI has hit a new high yesterday, the
> broad market has lagged.? We feel that the time is now ripe for the S
> shares to perform.? Our picks are (taking into account size, liquidity,
> market leadership, valuation):? Yangzijiang (YSJ), Cosco (COS ), Synear
> Foods (SYNF ), Midas (MIDAS), China Hongxing (CHHS), Yanlord (YLLG),
China
> XLX (CXLX), China Energy (CEGY), China Sky (CSCF), Celestial (CENU), Sino
> Tech fibre (SINOT), Hongguo (HGUO), Beauty China (BCH).? We illustrate
> some
> comparisons (pls see the attached Excel spreadsheet by Eddy for the full
> monty).
>
>
> Yangzijiang (YZJ SP) - 19x 08 PER
> Guangzhou Shipyard Intl - 22.2x 08 PER,
>
>
> Synear Foods - 17x 08 PER
> China Mengniu (2319 HK) - 34x 08 PER
> Tingyi Holdings (322 HK) - 35x 08 PER
> Bright Diary Foods (1886 HK) - 60x 08 PER
>
>
> Midas (MIDAS SP) - 21x 08 PER
> Zhuzhou CSR Times Electric? - 32x 08 PER
> Zhuzhou Times New Materials Technology - 37x 08 PER
> Jinxi Axle Co Ltd - 37x 08 PER
>
>
> China Hongxing Sports (CHHS SP) - 20.6x 08 PER / China Sport
International
> (CSPORTS SP) - 11.3x 08 PER
> Li Ning (2331 HK)? - 32x 08 PER
> Anta Sports (2020 HK) - 31x 08 PER
>
>
> Celestial (CENU SP) - 8x 08 PER
> Vitasoy (0345 HK) - 14x 08 PER
>
>
> Hongguo (HGUO) - 12.3x 08 PER