, Columnists
Hot Hong Kong IPOs to the Rescue
Tencent and Ping An have lost momentum. Spin-offs may be a catalyst for more gains.
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Investors may just have found the reason they need to keep on pushing two of Hong Kong's best-performing blue chips higher.
After more than doubling in 2017, shares of Tencent Holdings Ltd. and Ping An Insurance Group Co. have lost momentum. By now, neither is cheap. Tencent is valued at 36 times estimated 2018 earnings -- 56 percent more expensive than Facebook Inc. Ping An's Hong Kong stock, meanwhile, is trading at a rare premium to its yuan-denominated shares in Shanghai, a sign of global investors' enthusiasm.