5 Real Examples – How Protests in Hong Kong Could Bring Investment Opportunities

Delicious foods, expensive real estate, short-getaway destination and capitalism.

These and many other descriptive phrases will come up the moment you say Hong Kong.

Recently making headlines with their major protests over an extradition bill and storming the government headquarters,

it is not the first time they’ve attracted public attention over similar political issues.

There is even a petition going around encouraging Hong Kongers to change all their Hong Kong Dollars to U.S. Dollars as a form of protest against the government.

Current affairs aside, Hong Kong also has been known for their capitalist economy and notoriously expensive real estate which then leads to social challenges,

like elderlies who are forced to live in what is known as “cage homes” – small box-like spaces with lengths that are just enough for a person to lie down, and heights that are just enough for them to sit up.

However, despite these, Hong Kong has been maintaining its status as one of Asia’s major financial hub and continued to be a haven for investors around the world.

The Hang Seng index, although it suffered some form of dip early last month from the ongoing political uproar, did not experience a major hit like it did earlier this year in January.

In fact, it is rapidly recovering already.

Known for their free port and their pursuit of free-trade policies,

Hong Kong also has been quoted to have low, simple and competitive tax system, open business environment and world class infrastructure which allow businesses to flourish.

For these reasons, there actually exist plenty of profitable listed companies in the country, which would issue dividends to their shareholders almost consistently,

Also known as dividend companies.

Unlike most countries, Hong Kong, like Singapore, does not tax shareholders for the dividends they receive from stock investments and allow them to receive almost pure passive income.

Here are a few of the many relatable examples of what we’re talking about after a quick and casual scan on WealthPark Screener.

1. China Lilang Limited (SEHK: 1234)

China Lilang Limited manufactures and wholesales branded menswear and related accessories in the People’s Republic of China, mostly under the LILANZ brand.

Having a total of 2,670 retail stores around the country to date, China Lilang is currently headquartered in Jinjiang.

Last recorded dividend: HKD 0.37/share

2. Convenience Retail Asia Limited (SEHK: 831)

People who frequents Hong Kong, Macau and China would be familiar with this company as they primarily operate a chain of convenience stores known as Circle K.

On top of that, Convenience Retail also operates a chain of bakeries, Saint Honore, an online retailing platform, FingerShopping.com and a chain of eyewear business, Zoff.

This investment holding company is headquartered in Hong Kong itself.

Last recorded dividend: HKD 0.22/share

3. International Housewares Retail Company Limited (SEHK:1373)

Together with their subsidiaries, International Housewares manufactures, sells and trades housewares products.

Japan Home, City Life, Epo Gifts and 123 by ELLA are only a few of the many stories they operate in Asia and Australia.

On top of that, this company is also involved in licensing of franchise rights and provision of management services.

Last recorded dividend: HKD 0.123/share

4. LH Group Limited (SEHK:1978)

This multi-brand restaurant operator in Hong Kong has 39 restaurants specializing in Chinese and Asian cuisines across different parts of Hong Kong, such as Lucky House, Pavilion Restaurant and The Banqueting House.

They also franchise popular restaurants from different countries and brings them into Hong Kong so the locals will also be able to enjoy them, such as Gyu-Kaku from Japan and Yoogane from South Korea.

Last recorded dividend: HKD 0.054/share

5. Sun Hing Vision Group Holdings Limited (SEHK:125)

If you own a pair of eyewear, you may have interacted with this company. Manufacturer and trader of eyewear products worldwide, this group offers plastic frames, metal frames, sunglasses and related products on an original design manufacturing basis.

They also distribute eyewear from different brands like agnes.b, Bally and Levi’s.

On top of their eyewear business, Sun Hing is also an investment holding company which holds properties and trademarks.

Last recorded dividend: HKD 0.145/share

While these dividend companies may seem like good investments on any day, it is worth remembering that the stock market can also be very sentimental.

A stock that is trading at $1.00 today may be trading at $0.80 tomorrow, and yet, their business performance – the number of t-shirts sold in a day, the number of sunglasses sold in the week and the amount of people who eats in a restaurant on a typical evening,

will still be unchanging by a big margin.

So, keep an eye out for changes in share prices once you’re ascertained the right price to buy them in. In this political climate, the stock market just may throw a tantrum and you could then get your favourite dividend stock at a bargain.

And if it’s not the right time yet, use the WealthPark Screener to keep finding the best dividend companies to watch for.

You just might discover an even better company than the five we’ve listed above.

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Disclaimer: All facts and opinions presented are for educational purposes only. This is not a recommendation to buy or to sell. The author(s) involved in the writing of this piece do not have current vested interest of the company. Please consult a competent professional for expert financial, or other assistance or legal advice.

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Yen Hung Chua

Yen Hung Chua

I became an advocate of money management and value investing at the age of 27 for a simple reason. Money management, investing and MOST IMPORTANTLY, emotional stability – was never something that was taught in school. We end up a bunch of workers who are taught to only work for money but not the other way around, and to treat investing like a game of chance. And it was time to change that. Being with WealthPark, not only do I have the opportunity the spread the money-consciousness further and wider, but the platform on its own, is also wickedly useful for anyone who wants to invest in stocks.

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