* In addition, the subcequent decline of the Nasdaq Composite index may send a mild negative
impact on the local technology shares. However, the correction of some good fundamental technology
shares such as (409) Stone Electronics Technology, (418) Founder (Hong Kong) and (1186) Pacific
Century Cyberworks has overdone. We believe that they may have a mild technical rebound in the
coming days. We recommed investors buying (409) Stone Electric Technology at around HK$4.30,
(1186) Pacific Century Cyberworks below HK$16.00 and (418) Founder (Hong Kong) at HK$7.70 for
rebounding.
On the other hand, some good fundamental red chips such as (165) China Everbright Limited, (1199)
Cosco Pacific Holdings and (291) China Resources are expected to offer attractive returns for
investors in 2000. The economic growth in the PRC is expected to continue and we project that the
GDP growth of the PRC is 7.2 percent in this year. Furthermore, some red chips are expected to
commence to develop technology-related business. Citic Pacific is a good example. Among them,
China Resources is also a potential candidate to develop technology-related business. We
recommend accumulating (165) China Everbright Limited, (267) Citic Pacific and (291) China
Resources on weakness.