"I noticed that several stocks I own which are part of the HSI-H INDEX have had what I would call key day reversals [i.e 3-6% one day declines after a steady 6 month up move. The H-Index is still not expensive compared with US & Australian markets, therefore what's your assessment? Do those sharp down moves represent profit taking or are there other countervailing forces at play."

David Fuller's view After 6 months to the upside, I do not think that we should be surprised to see some downward dynamics in leading shares. The Hang Seng Index is not expensive, as you point out, partly because China's new government does not yet feel that it can back a strong economic drive, given the problems of pollution and house price inflation.

You are probably familiar with the adage: If you are going to panic, panic early. If you like the shares you hold, on valuations and prospects, I would not sell unless they are clearly overextended relative to their rising 200-day MAs.