It’s been a while since we talked stocks here at East Windup Chronicle. Well, actually this will be the first time.

I didn’t realize this but there’s actually a fund, developed by Macquarie Group Ltd. in Australia, that culls 23 prices from different companies expected to be greatly effected by the upcoming Olympic games — companies such as Air China, Beijing Capital International Airport Co. and Beijing North Star Co., which acts as the city government’s property arm.

From Bloomberg:

The 23 companies whose earnings Macquarie Group Ltd. said in November 2006 will get a boost from the Games fell by an average 21 percent this year compared with a 12 percent drop in the Hang Seng China Enterprises Index, data compiled by Bloomberg show. Air China Ltd., the nation’s largest carrier, led the tumble, losing half its value this year, while Beijing Capital International Airport Co. dropped 36 percent.

Even after the declines, the Olympic stocks are expensive, trading at an average 30 times reported profit compared with 19 times for the Hang Seng China index of 42 Hong Kong-listed shares. The Olympic stocks rose 69 percent on average in 2007, more than the index’s 56 percent gain, on expectations the Games will spur demand for everything from sporting goods to hotel stays.

Here’s the rub:

“We’ve seen a dramatic fall across the entire China universe, and the reasons for that are overstated,” Rocks said. “Tourism and property stocks, which will benefit from Olympics demand, will do better than the broader market once overall dynamics improve.”

(Via China Sports Today)