Lately I have putting my thought on foreign call warrants especially hong kong call warrants. There are a few reasons that i would like to put my money on these trade such as:
1) I think the current uptrend is still intact.
2) I would like to make good use of hong kong high beta market
3) I think hong kong stock market would rebound faster than our local stock market.
4) Hang Seng Index dropped more than KLCI. Hang Seng Index dropped from its peak of 31897.5 in Nov 2007 to its bottom of 11015.85 in Oct 2888, ya, it was a drop of whopping almost 70%! KLCI dropped from 1524 in Jan 2008 to its bottom of 801 in Oct 2008. KLCI dropped less than 50%.
5)I am still confident with its fundamental.
6) reasonable premium for its call warrants.
There are a few hong kong call warrants worth a look such as HKEX-CB, HSI-C7 and HSBC-c5. It would better to start to accumulate them during market correction.
For your information, Hang Seng is one of the most volatile market in the world.
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