Portfolio changes

A couple of weeks ago I decided to add HSBC (HK:5) to the portfolio. With a trailing yield of just under 6%, adequate capital adequacy and the battering of a series of scandals, I hoped that the share price had been pummelled to the point where not only had all the bad news had been priced in, but the market was anticipating more bad news.  I paid $65.50 for most of the shares I purchased and $67.40 for a small additional parcel.

Since I wish to keep a reasonable amount of cash on hand and would also like reduce the number of shares in the portfolio, I sold China Starch (HK:3838 and my smallest investment) at a loss and Sichuan Express (HK:107, a smallish investment) at a profit. Both of these companies have recently released disappointing results which followed previous disappointing results. The former has been blighted by significant increases in administration/marketing expenses and the latter by government polices adversely affecting toll roads.