Investors may just have found the reason they need to keep on pushing two of Hong Kong’s best-performing blue-chips higher. After more than doubling in 2017, shares of Tencent and Ping An Insurance have lost momentum. By now, neither is cheap. Tencent is valued at 36 times estimated 2018 earnings — 56% more expensive than Facebook. Ping An’s Hong Kong stock, meanwhile, is trading at a rare premium to its yuan-denominated shares in Shanghai, a sign of global investors’ enthusiasm. But there are plenty of dark clouds hovering. Investors may downgrade Tencent from a technology to a media firm, as they awaken to the notion that just one scandal — Cambridge Analytica in Facebook’s case — can sink a social media giant’s valuation. Meanwhile, insurers may be asked to become buyers of last resort in the event of a bond rout, now that the China Insurance Regulatory Commission is the subject of a hostile takeover by the banking regulator. Ping An and Tencent have moved well beyond their core ...

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