WHERE THE SMART MONEY SHOULD GO.

The article points out that Hong Kong has offered superior returns on equity investment over the previous years even though China plays, with their increased participation in the Hang Shen Index (HSI), are altering the equation. Calculations made by Global Asset Management revealed that since 1983, the HSI has consistently outclassed the MSCI World Index by about 7.2 percent on a compound yearly basis. However, past performance cannot be a guarantee of future performance, particularly in view of the increasing weight of mainland China companies in the index. Moreover, Hong Kong now has a second board called the Growth Enterprise Market (GEM), which is experiencing some initial growth problems.