Still, the company warned Hong Kong investors to diversify their portfolios away from the Hang Seng index, which, because of the high number of banks and real estate companies, is more sensitive to interest rate fluctuations and more volatile than other indexes.
Over the past five years the Hang Seng has under-performed the world's stock markets by about 3% a year, says Graham Bamping, director of investment communications for Merrill's Global Mutual Funds in London. However, over the past 10 years the Hang Seng has...
