Dear all
Against the backdrop of rising inflation, some market strategists have recommended “additional urgency” to rotate from technology plays to “old economy value stocks” to hedge against potential inflation pressures (as they believe such inflation pressures are not transitory).
A stock that may tick all the right boxes may be China Aoyuan (“Aoyuan”) (3883.HK). It belongs to the old economy stocks (i.e. property sector which may be a hedge against inflation) and seems to be a value play, given that it trades at HKD7.01 on 15 Jun 21.
Who is Aoyuan?
Quoting from a report by DBS Research which has a concise description of Aoyuan, “Aoyuan is a property developer with 57m sqm of land bank with a focus on the Greater Bay Area as at Dec-20. Aoyuan was founded in 1996 in Guangzhou and listed on the Stock Exchange of Hong Kong in 2007. Its founder and...