Lee Shau Kee Says Sell Above 30,000!

Asia's very own Warren Buffet, Lee Shau Kee of Henderson Land, has finally set a sell target for the Hang Seng index. For the first time since March, tycoon Lee Shau-kee seems to sense some risk riding the bull market. He indicated on Friday he might consider offloading part of his investment portfolio when the benchmark Hang Seng Index reaches 30,000 points. Thursday's surge by the HSI above the 29,000 barrier occurred much sooner than expected, Lee said at the Forum on Future Development of China in Guangzhou. "The stock market has accumulated quite a bit of growth. It's not a nice time to invest further," he said.

Lee reminded people not to engage in what he called momentum buying. He said his motto is always to "buy low" and that is the basis on which he encouraged investors to "seize the opportunity" to do so during this month's volatility. Insurance and energy stocks remain Lee's favorites, but he urged caution for mainland developer stocks as heavier austerity measures may be put forward next week during the 17th congress of the Communist Party.

The important and significant congress meeting in China has helped boost sentiment last week as investors expect the powers to be to want a vibrant stock market before and after the important congress meeting as a show of optimism and support from the masses. Hence the markets in Shanghai should continue to be vibrant over the next 3-10 days, but may see a pause after that.

Lee, the chairman of Henderson Land Development, maintains his 30,000 target for the HSI before the Lunar New Year in February, along with the 20,000 for the H-share index, that he predicted in late September. At the same forum, New World Development chairman Cheng Yu- tung sort of challenged Lee's previous predictions as "too conservative," as Cheng thinks the market is still healthy and stable. Sun Hung Kai Properties chairman Walter Kwok Ping-sheung also expects the stock market will grow "satisfactorily" in the long term. Commenting on Donald Tsang Yam-kuen's policy address of this week, Kwok said the 10 mega infrastructure projects announced by the chief executive will benefit the economy as well as foster closer ties with Guangdong. Cheng said the HK$250 billion worth of development projects will ease unemployment among construction workers, currently at 8.7 percent compared to the overall jobless figure of 4.3 percent.