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Opinion
How to buy Hong Kong stocks in 2024? Find the local dividend havens
- With foreign investors pulling out and the Hang Seng Index at a four-year slump, overlooked local firms delivering historically high dividend yields offer great value
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Ronald Chan is the founder and chief investment officer of Chartwell Capital Limited, a Hong Kong–based asset management company.
Investors have some important decisions to make in 2024. This year will see 2 billion people across 50 countries go to the polls, including in the United States, United Kingdom, India, Indonesia and Taiwan. These elections have the potential to create immense economic turbulence and uncertainty, which are likely to affect investor confidence and global stock markets.
Closer to home, investors in the Hong Kong stock market have had to adjust to a long losing streak. The Hang Seng Index has dropped for a fourth year in a row, a record-breaking underperformance since the creation of the index in 1969. Investors have good reason to feel aggrieved when they see the Hang Seng being outperformed by other stock market indices around the world.
Over the same four years, for example, the Nasdaq composite index has increased by 61 per cent and the S&P 500 by 45 per cent. For those who had invested in the Hang Seng Index, however, HK$1,000 put in the beginning of 2020 would be worth about HK$580 (US$74) today. Ouch.
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