HK crisis is creating opportunity for the investors: Julius Baer

Bloomberg

Julius Baer is recommending Hong Kong’s battered stock market as investor appetite fades after five months of protests, saying “times of crisis” are usually an opportunity to invest.
The city’s stocks have appeal as valuations are suppressed and dividend payouts exceed the yields on government bonds by near the most on record, said Yves Bonzon, chief investment officer at Bank Julius Baer & Co at a press roundtable in the city.
He added that the city’s currency board, which stabilises its value against the US dollar, would likely remain intact.
“Hong Kong equities are a buy,” he said. “You can see from the Hong Kong market valuation that the appetite for equities at the moment is very low, which creates a unique entry point.” Julius Baer’s positive outlook contrasts with pessimism in other quarters.