It is actually beginning to look expensive," says Stephen Leung of Daiwa Institute of Research.Īnd so, despite the problems, a handful of Hong Kong electronics stocks receive support from at least some analysts. "The stock has gone up 70% over the past year or so. However, after a long ebb-tide, prospects have improved. That didn't go down well with investors, says Lau. Unfortunately, it used the proceeds from its success not to improve its own manufacturing or expand its product line but to buy Mexican bonds. Johnson Electric, a manufacturer of micromotors, was once Hong Kong's best loved industrial stock. Hong Kong, he adds, hasn't developed brands in electronics, and much of its manufacturing tends to be contract work for well-known labels. "Hong Kong manufacturers are not as high-tech as many in Singapore and Taiwan," says Lau. Lau says they don't add much value to the end-products. Today, what remains are mostly investment shells with factories across the border. Much of Hong Kong's electronics production base moved to low-cost China in the early 1990s. Lau says Hong Kong is no longer regarded as a world-class manufacturing center in the way Korea, Taiwan and Singapore are. Herbert Lau, an analyst for Vickers Ballas, says Hong Kong electronics stocks have been caught in a prolonged, global slump: they underperformed the market over the past year and are unlikely to turn things around in the coming year. Public shares of banks, property firms and diversified conglomerates have raced ahead. H ONG KONG'S STOCK EXCHANGE has been one of the best performers in Asia over the past 16 months. Why Hong Kong electronics analysts do not agree From Our Correspondent: Hirohito and the WarĪ conversation with biographer Herbert Bixįrom Our Correspondent: A Rough Road Aheadīad news for the Philippines - and some others
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