Hong Kong Financial News

Just found out today that many parts of this blog are broken. So I just upgraded it to the latest version of wordpress.

If anyone did try to comment on my posts, sorry about it! The problem is now fixed!

May 5th, 2010 | Category: Uncategorized | Leave a comment

Bought HSI Bull Cert in the last hour of trading. Bought it at around 28000. Too bad it dropped another 40 pts or so and closed at 20763.

My strategy is that since it has broken its 100 day MA already (21200) and it’s approaching the 250 day MA line (20489). The downside is quite limited. If it drops again in the next few days, I probably will buy more HSI Bull Cert when it is close to 20500.

If it actually rises above 21000 tomorrow, of course I will sell the Bull Cert!

May 4th, 2010 | Tags: Bull Certificates, Bull Certs, hong kong stock market, May 4th 2010 | Category: General Trends | Leave a comment

US indices – Dow, Nasdaq and S&P all up more than 1.3% overnight

On the other hand, China market is back from holiday and probably will be down for the day due to the increase in bank reserve ratio over the weekend.

As China market will probably place a stronger influence on the HK stock market than the US one, I would think the Hong Kong indices will not go up that much today.

Action for today:

Sell the bull cert that was bought at market closing yesterday

Depending on stock movement during the day, I may buy HSI bull cert if the market seems to be well supported at around 21000. But very likely, I would not do much today.

May 4th, 2010 | Tags: hong kong stock market, May 4th 2010 | Category: General Trends | Leave a comment

Plan for the day:

Down day today due to two reasons:

1) US stock markets down last Friday

2) Chinese government increased bank reserve ratio for the third time this year over the weekend

Since mainland market is closed due to labor day holiday, there should not be much news during the day. My forecast is that HSI and HSCEI will both open low, rise a little bit in the 1st hour and then will continue its downtrend throughout the day

Intra-day: Buy HSI or HSCEI bear cert in the morning and sell after a few upticks.

Longer term strategy:

Since HSI and HSCEI are both very close to their 250 day moving averages, this is definitely a buying opportunity. Therefore, I plan to buy some bull certs on HSI, HSCEI right before market closes today. Hopefully, the market will be at its lowest point in the last hour of trading.

May 3rd, 2010 | Tags: 250 day moving average, bear cert, bull cert, HSCEI, HSI | Category: General Trends | Leave a comment

With National People’s Congress in Beijing this week, people are expecting announcement on the country’s directions from Wen Jiabao this Friday morning (March 5 2010). People are mainly expecting the government will:

i) Continue to promote consumption inside the country

ii) Promote agriculture and increase the living standard of its citizens, particularly the inland western areas

iii) Slow down the increase in real estate price, slowly deflating the asset bubble

Sectors of the week

This should benefit the following sectors:

Consumer (discretionary and staples), Agriculture

 and affect the following sectors negatively:

Banks, Real Estate

Stock picks of the week:

Digital China (861 HK) (IT stock, P/E relatively low – 15 times)

Chaoda (623 HK) (Agriculture stock, low P/E – 7 times)

China Green (904 HK) (Agriculture stock, low P/E – 15 times)

March 2nd, 2010 | Tags: Beijing, Chaoda, China Green, Digital China, March meetings, National People's Congress, Stock Picks of the week | Category: General Trends | Leave a comment

With the HSI rising more than 52% in 2009, let’s hope there will be a repeat in 2010!

Here is my strategy for HK Stocks this year:

• Subscribe for IPO (particularly for the smaller ones with an inbound consumer focus)
• Policy-driven trading: Follow the news closely. Any policy change will trigger new sells and buys and any of these trends can easily last for a week. A lot of Chinese companies are dependant on the central government’s policy. With the government worrying about a double dip in the middle of this year, more stimulus packages will possibly be rolled out to support certain industry segments and some stimulus packages will be withdrawn to prevent over-heating of some segments.

Happy Trading for 2010 everyone!

January 3rd, 2010 | Tags: Hong Kong stocks, strategy for 2010 | Category: General Trends | Leave a comment

No one should under-estimate the wealth of anyone in HK. Yesterday the headlines of most newspapers are about an unknown 76-year-old-woman (which looks more like a woman in her late 50s or early 60s) suing UBS for misleading her to buy a series of accumulator contracts which led to a loss of over HKD 200 million. The old woman claims she only has a primary three education and does not read or understand English.

I am not surprised that there are lawsuits like this suing investment banks for advising uneducated or illiterate people to buy accumulator products that made them some money at the beginning and lost a big fortune at the end. But what is the most intriguing is how she amassed such a big fortune… HK is really a place where you can make a lot of money…

July 30th, 2009 | Tags: accumulator, loss | Category: General Trends | Leave a comment

This is an excerpt from David Webb’s newsletter today:

Thought for the day: after locking up hundreds of tourists in a hotel to boost the tourism industry/in the vain hope of isolating HK from swine flu, we are now the only territory in the world to shut down all schools, ironically at the same time as announcing plans to make HK an education hub by dolling out land to “private universities”. Is the government giving up on our public universities? How can you build a university with only 200,000 sq ft of floor area anyway – equivalent to about 10 floors of the Cheung Kong Centre? Meanwhile HK Disneyland responds to the kindergarten/primary shutdown by launching a special unlimited entry pass for children before the end of June. At least, we thought, there is some entrepreneurialism left in HK, albeit imported. But not so fast – lest we forget, this is the world’s only Government-owned Disneyland. The offer no longer appears on the Disney web site.

It just seems to me that the Hong Kong government has been telling people that they are pushing some industries to grow, but at the end most end up dying… Since the Tung Chee Wa’s era, we have seen: dot com, Chinese medicine, Islamic finance, wine trading, etc. But none of them are really prospering at the moment. Hong Kong government really need to think hard why this is happening. Are the policies too short-sighted? Has the government spent enough resources in promoting these industries? Maybe the environment in HK is really stifling the entrepreneurial spirits that were founded in HK thirty years ago?

June 25th, 2009 | Tags: Thoughts on entrepreneurship in Hong Kong | Category: General Trends | Leave a comment

PCCW has decided to abandon its privatisation plan by letting the buyback offer lapse. On the other hand, Richard Li has told Bloomberg that he hasn’t decided whether he would appeal the ruling made by the Court of Appeal.  As a result, PCCW share price dropped 13% today.

On another note, PCCW has declared a special dividend of HKD 1.3 per share. This is good news for minority shareholders as they are actually getting something at the end.

April 24th, 2009 | Tags: 0008, PCCW, privatisation, special dividend | Category: Companies | Leave a comment