WSJ.com - Will red-hot China plays end up burning Hong Kong investors?: "Investors wary of high valuations can seek out undervalued laggards, though there are few, Mr. Lau says. He suggests an indirect play on rising consumption in China, GST Holdings, which makes fire alarms and home-security systems. The stock is trading at just 10 times earnings estimated for last year, according to J.P. Morgan. (GST hasn't yet reported its 2005 full-year figures.)
To some veterans, the market for China stocks in recent months is vaguely reminiscent of 'red-chip fever,' which struck in 1997 as Britain prepared to hand Hong Kong over to Chinese rule. Shares of red chips, Hong Kong companies with major business interests on the mainland, rose about 150% from the start of that year to a peak in late August, amid expectations that significant China businesses would be injected at attractive prices."