Valuations, valuations, valuations:

Based on the P/B chart, the Hang Seng Index is trading at the cheaper end of its range but not yet at levels seen in 2016.

Top 10 components of the Index

People are far more bearish than just 6 months ago – with highflying companies like Tencent bearing the brunt of the sell-off. Expectations earlier in the year that the trade war would be resolved in earlier discussions proved wishful thinking as Trump ripped apart earlier agreements negotiated by his staff.

A subject which I will touch upon more in a subsequent post is that there’s a lot happening behind the scenes too than just the trade war which has become a boogyman of sorts.

China had been embarking on a dramatic deleveraging campaign. Casualties included firms like Anbang which went on a overseas spending binge (former head of Anbang has been jailed), …