10 HK stocks with low P/E ratios and high ROE

Joel Greenblatt the famous investor outlined in his book "The little book that beats the market" a simple yet powerful concept: Buying cheap stocks with high returns on equity. According to Greenblatt, if you followed this strategy and rebalanced the portfolio every year, your returns would be more than double the market averages. I have screened for Hong Kong stocks with a market cap of at least 1 billion USD, P/E < 11 and ROE > 20%. Here is the full list:

10. Huabao International Holdings Ltd

Market cap: 1.2 billion USD
Industry: Chemical Manufacturing
P/E: 8.16
ROE: 24.77%
Dividend: 3.69%

Huabao International Holdings Chart

9. Guangzhou R&F Properties Co Ltd

Market cap: 2.5 billion USD
Industry: Construction Services
P/E: 3.5
ROE: 25.6%
Dividend: 7.3%

Guangzhou R&F Properties Co Ltd Chart

8. Luk Fook Holdings International Ltd

Market cap: 1.06 billion USD
Industry: Retail (Specialty)
P/E: 7.5
ROE: 26.5%
Dividend: 5.3%

Luk Fook Holdings International Ltd Chart

7. Hang Seng Bank Ltd

Market cap: 18.5 billion USD
Industry: S&Ls/Savings Banks
P/E: 9.2
ROE: 26%
Dividend: 4.2%

Hang Seng Bank Chart

6. Truly International Holdings Ltd

Market cap: 1 billion USD
Industry:  Electronic Instr. & Controls
P/E: 8.1
ROE: 27.4%
Dividend: 4%

Truly International Holdings Ltd Chart

5. Sunac China Holdings Ltd

Market cap: 1.2 billion USD
Industry: Construction Services
P/E: 4.25
ROE: 27.5%
Dividend: 6.7%

Sunac China holdings chart

4. Xinyi Glass Holdings Ltd

Market cap: 1.4 billion USD
Industry: Constr. - Supplies & Fixtures 
P/E: 6
ROE: 29%
Dividend: 5.5%

Xinyi Glass Holdings chart

3. COFCO Land Holdings Ltd

Market cap: 1.3 billion USD
Industry: Real Estate Operations
P/E: 4.9
ROE: 30%
Dividend: 0%

COFCO Land Holdings Ltd chart

2. Great Wall Motor Co Ltd

Market cap: 7.7 billion USD
Industry: Auto & Truck Manufacturers
P/E: 8.7
ROE: 31%
Dividend: 5.7%

Great Wall Motor Co Ltd chart

1. Hisense Kelon Electrical Holdings Co Ltd

Market cap: 1.07 billion USD
Industry: Appliance & Tool
P/E: 10.3
ROE: 61%
Dividend: 0%

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Hisense Kelon Electrical Holdings Co Ltd chart