| Abstract | According to the author, the stock market has been going up at double or treble the rate of growth in 1996 company earnings, and shares are selling on a current price/earnings multiple approaching 15 times. The drivers for all this are stable interest rates, with the United States long bond range trading around 6.65 per cent, plus a belief that Hong Kong is approaching the bottom of a business cycle. A thaw in the political climate, and a China economy in its best shape for years, are seen as paving the way for a smooth change of flags in July 1997. |
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