Some interesting analysis from Bloomberg. "Hong Kong’s most expensive stockmarket in three years looks cheap to investors at TempletonAsset Management Ltd. and Baring Asset Management Inc." And based on cash flow, HongKong is the cheapest among the 20 biggest markets, data compiledby Bloomberg show.
But, the Heng Seng is up only 45% year-to-date compared to 120% for the rival Shanghai Composite. Bloomberg points out: "The 10 most expensive Hang Seng stocks include sixcompanies based in Beijing, Shanghai or Shenzhen. Their sharestrade between 34.9 times and 62.8 times profit, Bloomberg datashow. The same stocks are valued at 42.5 to 70.4 times onChina’s mainland exchanges."
Based on those numbers, it does not matter which exchange lists these companies. They are too expensive.
Douglas A. McIntyre