David Fuller's view

My largest trade is currently in the Hong Kong Hang Seng China Enterprises (H-Shares) Index.  The most expensive portion of this position in the April futures contract was purchased on 9^th April at 14041.5.  This was stopped out this morning at 14200 and I reopened the position at 14039.3 this afternoon.  I expect some further volatility on Monday, following China’s tightening of margin requirements mentioned in the lead item above.  This may persist for a short while as a consolidation of earlier gains occurs.  However, the H-Shares represent good value with a p/e near 10 and a yield of almost 3%.