'Cheap' HK stocks in demand

SHANGHAI/HONG KONG: "Cheap" Hong Kong stocks will be targeted as the mainland expands a program for local investors to buy equities and bonds overseas, according to Lewis Wan, chief investment officer of Pride Investment Group Ltd.

E Fund Management Co said on Oct 26 it received a $1-billion quota to invest overseas under the qualified domestic institutional investor (QDII) program, the first approval by the authorities in 17 months.

QDII funds are the only route for mainland investors to buy overseas stocks and bonds. Hong Kong-traded shares of mainland companies typically trade at a discount to mainland listings.