China Merchants Holdings (International), an infrastructure and shipping conglomerate with HKD11 billion (USD1.41 billion) in assets in Hong Kong, is considering boosting its investment in equity-linked notes. "We like the enhanced yield," said Tim Shen, head of investment and research. Shen is currently planning the investment portfolio, but is yet to decide on how much the company will allocate to the notes.
China Merchants invested in equity-linked notes two years ago, said Shen, adding that the product is more attractive now because of the lower interest rates in Hong Kong. As a result it is looking at stepping up its allocation. He said it will invest in Hong Kong dollar-denominated notes on local names.
Officials at Merchant Holdings are speaking to a number of banks in Hong Kong about the products, declining to name them. It will decide which notes to invest in based on pricing and credit rating, said Shen.
