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a very good piece of report by OCBC on 2823 HK
Ishares FTSE A50 China Index
"A50 China Index attractively
valued given soft landing base
case scenario
Our base case is for a soft economic landing
in China, and we are forecasting real GDP
growth to gradually slow from 7.7% p.a. in
2012-2013 to 7.3% in 2014 and 7.1% in
2015. Given this benign baseline, we believe
the A50 China Index, currently trading at
7.1x PE and 1.2x PB (both around 10Y lows
and more than one standard deviation below
their 10Y averages), is attractively valued,
particularly when put against regional and
global peers. In addition, we note that 46%
of A50 Index components, by index weight,
currently trade at a discount to their dual-
listed H-shares, which further points to an
undervalued A50 China Index"
After reading the report I agree strongly with the facts and thus started buying 2823 HK, at 7 times earnings I do feel that there's a lot of margin of safety
Cheers