It was not until last week that Morgan Stanley caused some turbulence when it reiterated its warning that the index could give back half of its 3,000-point gain over the next two months.

The benchmark has usually fallen a month before a major China-banking initial public offering and rebounded afterward.

Does this suggest the index will fall below 16,000 ahead of BOC's debut on June 1? Quite possibly, especially with after-market futures trading as low as 16,230.

But we have also taken advice from Goldman Sachs, which yesterday issued a bullish report on China, with an H-share index target of 8,000 by year-end and 12,000 by the end of 2008.

'While we believe the road could be bumpy and short-term technical pullbacks might be possible given the strong year-to-date market performance, we would take any consolidation as a buying opportunity,' the report said.

Swim with the sharks, but always remember - don't lose your shirt.

court off guard

When it comes to public speaking, casino king Stanley Ho Hung-sun seldom disappoints.

But how does he measure up in court? Mr Ho was summoned to a Macau hearing to clear up a shareholder conflict with his sister, Winnie Ho Yuen-ki, ahead of the planned listing of his Sociedade de Turismo e Diversoes de Macau (STDM). Lai See sent a pair of ears to the event and we intercepted this dialogue:

Lawyer: 'At your STDM's shareholder meeting on March 31, you passed a resolution to set up a Hong Kong company. Do you need another shareholder meeting before the IPO?'

Mr Ho: 'I agree with you ...'

Judge (after a long silence): 'Sorry, what part of the sentence do you agree to?'

At age 84, Mr Ho may be showing a bit of wear and tear. But after his appearance, Mr Ho was apparently back in top combative form, vowing that he would never be defeated in court.

eye for a good deal

Sometimes a bad company can still make very good investments.

Yesterday, the liquidators of Moulin Global Eyecare Holdings confirmed it had sold the company's Eye Care Centers of America for a profit of US$135 million, up almost 40 per cent from its initial investment 15 months ago.

Moulin shareholders are not smiling over the sale, but its creditors are probably appeased a bit as a huge chunk of the proceeds will go to them.

musical mansions for taipan

Who wants to be as rich as Canning Fok Kin-ning? According to the Hong Kong Economic Times, the Hutchison Whampoa taipan has put his two houses in Chung Hum Kok Road up for sale for $200 million, after paying $60 million for them between 1992 and 1994.

Last week, he reportedly bought a house in Deep Water Bay Road, next to his boss's, for $350 million - three years' worth of his pay.