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Credit Suisse: agility is key for small cap investors in the Year of the Rabbit; focus on forgotten names with turnaround potential; eight China/ Hong Kong picks with 36% potential upside

The Hong Kong stock market recorded favorable returns in two previous years of the rabbit (1975, 1999), with the exception of the crash in October 1987. Credit Suisse analysts said the Hang Seng Index, which increased 1.7% on the first trading day of 2011, should record positive returns in year of the Golden Rabbit in 2011 if the January effect is anything to go by. Investors should avoid crowded and outperformed stocks and focus more on forgotten names with the potential of a business turnaround.