earnings-upgrades-likely-for-hshares

Earnings upgrades likely for H-shares

Specialists expect accelerated appreciation of the renminbi to drive up ChinaÆs consensus earnings growth estimates.
Chinese companies listed in Hong Kong deserve an earnings upgrade because the renminbi is on course to appreciate up to 13% in 2008, say analysts who expect the Chinese authorities to use currency appreciation as a key tool this year to manage an escalating inflation threat.

For Chinese companies reporting in Hong Kong dollars, a stronger renminbi will result in a bottom line gain simply as a result of the currency translation -- something which hasn't yet been fully factored into earnings forecasts, some analysts say. And even if analysts have taken renminbi appreciation into account fundamentally, earnings forecast trackers such as the MSCI will not convert the forecasts using an expected exchange rate in...
¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222