Kenny Tang Funds Quotations

We're seeing some bargain hunting in China Mobile as some funds are switching from interest-rate sensitive stocks that have rallied to China shares.

Profit-taking dragged the index lower. But funds are still in Hong Kong and are helping support the index despite the pressure on stocks to trade lower after the weak showing of overseas markets.

Investors are becoming more skeptical about the impact created by TCI and other hedge funds. They realize the shares could rise quickly in anticipation that the hedge funds might increase their holdings, but they are also wary of the potential for sharp falls when these hedge funds exit the market.

Investors remain bullish about the local market. Most funds are keeping positions here, with some adding major stocks to their portfolios including HSBC and Cheung Kong.

The market was driven higher by the gains in the US and Japanese markets. Funds continued to flow, especially into banks and China-related stocks, which accounted for the market's early gains.