Lumiere Capital sees value opportunities in HK

VALUE managers such as local boutique house Lumiere Capital are hunting for opportunities in Hong Kong that will benefit from China's equity run.

"Not that Hong Kong will go to 50-60 times PE (price to earnings), we're not even betting on that. If some stocks only trade at 15-20 times, which is not excessive, you already have a two-bagger (an investment that doubled)," said Wong Yu Liang, co-founder of Lumiere, which manages around S$110 million.

"The China bull market draws attention to the region. If you believe that fundamentally China is changing for the better, Hong Kong stocks are not expensive from an absolute valuation basis. People will start looking more to participate in the successful restructuring of China."