Hongkong Electric Recommendation: Buy Brokerage: Jardine Fleming HONGKONG Electric is engaged in the generation and supply of electricity, engineering consulting and project management. A recent visit to the company confirmed its status as a safe haven during the period of speculative attacks on the Hong Kong dollar and higher interest rates. Finance director Lawrence Do said 98 per cent of the company's debt is in Hong Kong dollars, matching revenues, and 60 per cent of its $16 billion debt has fixed interest. The company is confident it will win Government approval by mid-1998 for building new capacity at Lamma Island. First Tractor Recommendation: Buy Brokerage: Credit Lyonnais Securities Asia FIRST Tractor is the largest tractor manufacturer in China, both in production volume and sales value. The company is well-positioned to benefit from the government's preferential policies towards agriculture, as well as from accelerating growth in the sector. It is the only listed purely agricultural-machinery play in the H-share market. Agriculture has emerged relatively unscathed from the austerity crunch and will achieve long-term development. First Pacific Co Recommendation: Buy Brokerage: UBS Securities FIRST Pacific is a regional conglomerate controlled by the Indonesian Salim group and has interests including marketing, telecommunications and banking. The company's risk-reward profile has improved since the recent sharp plunge in its share price due to the regional currency crisis. Adjusting for First Pacific's major trading unit Hagemeyer, the market is valuing the rest of its businesses at a low 1998 price-earnings ratio of 1.9 times. Earnings and net asset value estimates already reflect current Southeast Asian exchange rates, and further currency depreciations will have a minimal impact. China Light & Power Recommendation: Buy Brokerage: Salomon Brothers CHINA Light generates and supplies power to Kowloon and the New Territories, and exports power to Guangdong province. Hong Kong utilities will sustain their out-performance of the Hang Seng Index if it continues to fall, as these stocks offer relatively good protection from currency and interest rate concerns. While the valuation of many Hong Kong stocks may look 'cheap', it is unlikely the core earnings of the utilities will be substantially downgraded. China Light should perform particularly well as the company has solid fundamentals and healthy projected dividend yields.