Financial Reform in USA?

Haha, 116.HK continue to go up! Go go gold! I think it is bad idea to buy real gold now, near the $1000 level. Better play with the gold retailers in HK, which is supported by strong consumer spending growth.

HK market still risky this week, with another long weekend. Jobs data in USA will be released on Fri, so people probably won't want to risk it for the long weekend.

I still think it is a good idea to sell put on high volatility stocks/index with limited downside. I am not naming stocks here, but many of my friends think that their "facourite" stock have been down so much and is sooooo cheap now. The only problem is that we do not know when they will go up. So the best way to benefit from this is: sell a put at a stirke price that you will buy it anyways.

China Resources Power 華潤電力 (836 HK) annouced earnings, in-line with consesus . I still think it is the best out of the power utilities in China. It has the most effecient operation (25.5% OP margin) and expanding to coal mining to secure raw material. Government will continue to remove small IPP and support more efficient and environment friendly large powerplants. Electricity price cannot be freeze forever. It is already very cheap and should experience the smallest unit fuel cost increase among peers Capacity set to increase 80% by 2010. They are the best because of the excellent cost control. (Their typical powerplant with 2 units only need 100 employees, only 10% ~20% of peers. Centralize coal sourcing also help them to get better pricing without using a middleman. Debt/ Equity of 0.76 is healthy for power utility company (internal aim for 1.5 at max), with 18% in HKD and 37% fixed rate borrowings which can mitigate the risk of rate hike in China.

On other stocks.... I think 2883 is a strong buy below $10 HKD. As a oil service provider with a huge parent (CNOOC), future is bright even if oil price is volatile. Most fund managers prefer service provider than the mining/ oil companies anyways. It would be the core holding of most long funds in bull market.