Others include Hong Kong's dominant carrier Cathay Pacific Airways and ports-to-telecom conglomerate Hutchison Whampoa Ltd on rosy prospects for third-generation mobile phone subscribers.
"Some of the unknown factors that the market may be worried about is the fact that the US growth appears to be slowing, especially the US consumption side," said Lorraine Tan, research director at S&P's Asia-Pacific Equity Research Services.
"That will lead generally to overall slowing of the global economy."
China, the world's fastest-growing country, is expected to see GDP growth of 8 percent next year, S&P said. Although easing from a projected 9 percent or more in 2004, growth is still robust and would help boost domestic consumption.
Tan expects the Chinese government to introduce more measures to cool its racing economy next year, including further interest rate hikes if inflation is stronger than expected.
"But I don't think it'll be aggressive, which is why we are still positive on China picks as a whole," Tan added.
The Select S&P China Picks Portfolio contains 25 stocks which are all Hong Kong listed and consist of Hong Kong companies, H shares and red chips. H shares are firms registered in China while red chips are registered in Hong Kong.
S&P also said it favoured Hang Lung Properties, Henderson Land Development and Sun Hung Kai Properties Ltd as Hong Kong's real estate market continues to recover, and on hopes that dividend payouts will rise on improved earnings.