Identifying Quality Companies In Hong Kong [CHART]

Via The Value Edge
As per continuation from the previous article (here), I have decided to post my findings with regards to the Hong Kong market. The methodology used was exactly the same as the last – past 10-year financial data and only companies trading within the top 20 percentile that exhibits all the qualities are shown.

Once again, it is crucial to note that this is only part of a screening process. This rigorous screening process of using past 10-years of financial data is most likely sufficient in eliminating most risky fraudulent H-shares.  That said due diligence is still required for each company to determine if the current market price has sufficient margin of safety.

Has including ESG become a necessity for investors?

Clint CarlsonESG (environmental, social, governance) has become a hot topic in recent years, especially lately with the debate over whether pension funds should be able to factor in ESG when choosing investments. At Morningstar's recent conference, the firm argued that ESG has become a requirement for long-term investors. Q2 2020 hedge fund letters, conferences and more Read More


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I developed my passion for investment management especially equity research at a relatively young age. My investment journey began when I was 20, at a point in time where markets were still recovering from the Global Financial Crisis. My portfolio started from money I saved over the past years and through working during the holidays. I was fortunate to have a good friend with common investing mentality to began my journey towards value investing. To date, we still research and invest in companies together, discussing valuations and potential risks of a company. To date, I manage a fund with a value investing style. Positions are decided upon via a bottom-up approach or smart speculation (a term I came up with when buying a stock for quick profit due to a mismatch in prices in the market due to takeovers/selling of a subsidiary or associate). Apart from managing my own portfolio, I enjoy sharing my research with family and friends, seeking their opinions and views towards the stock. Reading Economics in London, I constantly keep up with the financial news in Singapore & Hong Kong. Despite my busy schedule, it has not stopped me from enjoying other aspects of life. I enjoy a variety of activities in whatever free time I may have – endurance running, marathons, traveling, fine dining, whiskey appreciation, fashion. Lastly, I enjoy meeting new people, discussing ideas and gaining new perspectives towards issues in the world.