CWs for HK stocks as at August 23, 2007

The recent decision by Chinese authority to allow mainland investors to buy Hong Kong stocks has given a big boost to the Hong Kong stock market ( go here). The Hang Seng Index has been rising in the manner of "runaway gaps" (see the chart below). It may soon re-tested its July 24 high of 23,534. A failure to break above this level may lead to a minor correction in Hong Kong stocks. You may use this correction to accumulate some CWs of Hong Kong stocks.



Chart: HSI's daily chart as at August 23 (courtesy of Yahoo Finance)

Since my last update, we have another 3 new CWs listed, i.e. CCCC-C3, CHMOBIL-C4 & HKEX-C3. These are all non-collateralized European-style cash-settled CW issued by CIMB.



The new CWs are highlighted in blue & those CWs with attractive premium (of less than 4%) are highlighted in green.