A Greater Than 30% Annual Return for this Portfolio in the Hong Kong Market

Proofreading  by T Scarborough

00817 15%

01918 15%

02601 20%

01336 15%

00700 15%

00207 10%

01109 10%

As long as the fundamental aspects of these companies remain,  I believe they will be fine. Only the annual dividend return of this portfolio is higher than 4%  after-tax currently (a rough calculation), and it will increase. 

All of those companies are running their business in mainland China, thus there is no Honk Kong independence policy risk. 

The Hong Kong market is already over-selling before the financial crisis hits the United States. The liquidation problem causes non-Chinese organizations to sell more in the financial crisis regardless of cost, which makes those companies even more undervalued. 

This profile has a great risk-return ratio (sharpe ratio), because even the dividend is more 4% after tax. Thus, you can ignore the fluctuating emotions of the market. 

After the financial crisis and the novel situation caused by COVID-19, the 0% (or negative interest rate) will make high-quality assets even more valuable. The net income of the portfolio weighted by the percentage of the portfolio is more than 20% in the 3% increased Chinese real-GDP environment. Then, add the dividend and the slightly PE increased/regression, and it could easily reach a 30% annual return.

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