Hong Kong Stocks Outshine Mainland China

Mainland China is the place to be, right? Not according to Peter Stock. The president and chief investment officer of Stock Investment Management says Hong Kong is a better value -- and he thinks the mainland is a bubble slated to burst. He joined CNBC's Mark Haines to tell "Squawk on the Street" viewers which Hong Kong companies' shares are poised to jump.

Stock said that Hong Kong is trading at "16, 17 times earnings," as compared to the mainland's A-share (Chinese common stock) market, trading at "50-plus." He believes continental China is "definitely" due for a correction.

Stock recommended companies he's held for a "number of years" for clients. His top three:

- Hutchinson Whampoa. Majority-owned by billionaire Li Ka-shing, the CIO calls this a "global company that happens to be headquartered in Hong Kong." Stock cites this "extremely attractive" firm as a play on ports, telecom, retail and energy.

- Cheung Kong. Stock pointed to "Li's flagship company" as a "big property player" on the Pacific Rim, amassing a "land bank" of real estate holdings.

- Shangri-La Hotels and Resorts. Stock said that this high-end leisure firm owns hotels throughout the mainland and the region -- and will definitely benefit from mainland growth and its ripple effects all over Pacific Asia.