HK earnings season has limited downside for stocks, say equity strategists

Hong Kong

EQUITY strategists and fund managers see more upside than downside for Hong Kong stocks as 94 companies prepare to report annual results this week.

"Expectations are really, really low at the moment," said Joshua Crabb, head of Asian equities at Old Mutual Global Investors. "The downside is still relatively limited."

In last year's earnings season from January through May 2015, 58 per cent of companies on the Hang Seng Composite Index missed average sales estimates and 56 per cent missed average ear…