"HSBC Holdings (NYSE: HBC) has been bucking the severe downdraft in the financial sector," says Jim Trippon in his China Stock Digest. He calls the stock an "exceptional value."

"The company recently announced that its second half profits were up 17% despite some exposure
to subprime losses. Lending to emerging markets overcame U.S. subprime losses, increasing income to $8.24 billion or 69 cents a share.

"HSBC continues its expansion throughout the Chinese mainland and Southeast Asia. The company has received regulatory approval to join the first wave of foreign banks to incorporate in Vietnam.

"HSBC is already reaping billion dollar profits on the Chinese mainland, and it is poised to expand by opening private banking operations in Shanghai.

"We believe HSBC still represents exceptional value and opportunity in the depressed financial sector. HSBC has a P/E/ just below 10 compared to an industry standard of more than 15.

"With its excellent 5.4% dividend yield, we find this stock attractively priced and look forward to taking profits when shares reach $100."

Editor's note: Jim Trippon has just finalized plans for his next investor tour to China. Scheduled for October 8-21, 2008, the trip will feature exclusive access to top Chinese business and government officials. Jim is offering a $500 discount for everyone who registers and pays their deposit before May 15th. For more information, call (888) 853-1456.