23 August 2017

Hao Chenglin

Columnist at the Hong Kong Economic Journal
  • Improving logistics infrastructure is a key factor fueling the rapid growth of e-shopping, especially in small cities. Photo: China Daily

    Why online shopping sites will continue their dominance

    - Mar 22, 2017 4:06pm
    China’s retail sales rose 9.5 percent in February from the year before, making it one of the few sectors that maintain nearly double-digit growth rate. Online shopping has reported more than 30 percent growth, indicating that...
  • Fed Chair Janet Yellen dropped a strong hint last week that an interest rate hike is on the way this month. Photo: Reuters

    US, China monetary tightening poses risk to HK equities

    - Mar 8, 2017 4:29pm
    Financial markets had earlier been factoring in a 30 percent chance for a March rate hike by the US Federal Reserve. Now, after a series of comments from Fed officials, including chair Janet Yellen, the odds...
  • Warren Buffett reckons investors have wasted more than US$100 billion in paying fees to high-priced advisers over the past decade. Photo: Reuters

    Why hedge funds won’t beat index funds

    - Mar 1, 2017 5:00pm
    At the onset of the global financial crisis almost a decade ago, billionaire Warren Buffett made a bet with Ted Seides, head of hedge fund Protege Partners whether a passively managed index fund can outperform actively...
  • Jacinto Tong attributes his group’s success to a key decision to snap up commercial properties during a severe downturn triggered by SARS outbreak early last decade. Photo: HKEJ

    The art of the deal: Lessons from Gale Well Group

    - Feb 22, 2017 5:29pm
    Gale Well Group made a few key decisions that helped the Hong Kong-based property investment firm grow its once-small portfolio to its current size of HK$35-40 billion. In interviews with the media, founder Jacinto Tong Man-leung...
  • Snapchat’s biggest user group, youngsters, may not be the main target of most advertisers. Photo: Reuters

    Why investors should say ‘no’ to Snap IPO

    - Feb 15, 2017 4:43pm
    Snap, the parent company of messaging app Snapchat, has filed to go public in the United States. The initial public offering is expected to raise US$3 billion, valuing the company at US$20 billion to US$25 billion....
  • Pension funds are expected to enter the mainland stock market soon. Photo: China Daily.

    Is the rally in Chinese insurance stocks justified?

    - Feb 8, 2017 5:00pm
    A number of mainland insurance stocks surged 7-8 percent on Monday on hopes that Chinese pension funds are about to enter the stock market. Lou Jiwei, president of the National Council for Social Security Funds (NCSSF),...
  • In Berkshire Hathaway’s 2005 letter to shareholders, Warren Buffett introduced the Gotrocks family to illustrate how transaction costs and fees can seriously erode long-term returns. Photo: Reuters

    What Buffett’s Gotrocks story tells investors

    - Feb 1, 2017 3:42pm
    Investors are always looking for better returns but most forget that cost is also a crucial factor. In Berkshire Hathaway’s 2005 letter to shareholders, Warren Buffett introduced the Gotrocks family example to illustrate this point. The...
  • Japan’s Softbank is among a number of foreign companies that have pledged to invest heavily in the US. Photo: Reuters

    Why are companies rushing to invest in the US?

    - Jan 25, 2017 5:18pm
    Japan’s Softbank Group and Taiwan’s Hon Hai Group, known as Foxconn, are planning hefty investments in the US. Also, China’s Fuyao Glass has built a factory in Ohio recently. Why are these companies flocking to the...
  • Had investors sold properties based on Beijing’s pledge to rein in real estate prices a couple of years ago, they would have missed one of the biggest rallies. Photo: Reuters

    Why it’s tough to make policy-driven investment bets

    - Jan 12, 2017 10:58am
    In the old days, it was often said that the key to career success for officials is knowing what’s on the king’s mind. Investors have been applying that thinking to investing in Chinese firms. It did...
  • The structural growth trajectory of China's natural gas industry remains intact. Photo: Xinhua

    Secular vs cyclical growth: How to tell them apart

    - Apr 1, 2016 5:07pm
    A number of coal-fired power companies have posted 30-40 percent profit growth, mainly due to falling coal prices. By contrast, gas-powered operators have reported about 10 percent earnings expansion. Also, coal-fired plants have a price-earnings (PE)...
  • If Hong Kong and mainland stock markets are providing disappointing returns, should investors have to look at international markets? Photo: Xinhua

    Is value investing out of date?

    - Mar 23, 2016 5:37pm
    Columnist Alex Wong said in an article on Tuesday that many fund managers are now holding high cash positions while looking for speculation opportunities to ensure positive returns. “The rule of value investing has been put...
  • Stock-based compensation at Twitter accounted for 247 percent of its profit last year under the non-GAAP reporting standard. Photo: Bloomberg

    Excessive stock-based compensation leads to disaster

    - Mar 19, 2016 8:03am
    Is stock-based compensation (SBC) a real cost for a company? Many investors don’t think so because they believe as long as the company doesn’t pay any cash, there’s no cost. That’s not true. The cost is...
  • Investors should beware of risks that can come with cheap valuation. Photo: Bloomberg

    Buying cheap can sometimes prove expensive

    - Feb 24, 2016 5:08pm
    Real Nutriceutical Group (RNG, 02010.HK) recently announced the change of auditor. From a corporate governance perspective, there are two things investors should be cautious about: frequent resignations of non-executive directors and a sudden exit of the...
  • Wanda group is stepping up focus on entertainment and tourism-related businesses while cutting back on property development. Photo: Bloomberg

    What does Wanda’s restructuring plan tell us?

    - Feb 20, 2016 8:03am
    Dalian Wanda Group, the parent company of Dalian Wanda Commercial Properties (03699.HK), has pegged its revenue target for this year at 254.3 billion yuan, down 12 percent from the year before. Of the total, the property...
  • The Hang Seng Index plunged on the first day of trading after the Lunar New Year holiday. Photo: HKEJ

    Stock market falls amid deflation risk

    - Feb 15, 2016 1:01pm
    Is deflation rearing its ugly head again in Hong Kong?  Falling real estate and stock markets will put pressure on asset prices, but household income is another factor to watch. The financial industry is having a hard...
  • In 2009, then Federal Reserve chairman Ben Bernanke launched a zero interest rate policy. Photo: Bloomberg

    Low valuation may also be expensive

    - Feb 3, 2016 5:16pm
    Typically, there are three indicators of economic recovery: high economic growth rate, high inflation and high interest rate. High interest rate is not bad if it reflects fast economic growth. But when the interest rate is...
  • Hong Kong will find itself in a difficult situation when the divergence of the US and Chinese economies expands. Photo: HKEJ

    Hong Kong torn between two divergent economies

    - Jan 29, 2016 5:07pm
    Hong Kong investors should worry more about the local economy than the situation in mainland China. The city’s monetary policy follows that of the United States, but its economic fundamentals are grounded in the mainland. When...
  • Almost 80 percent of new users of high-speed mobile networks in the past two years have chosen China Mobile. Photo: Bloomberg

    Bright future for China telecom sector

    - Jan 23, 2016 8:05am
    The Hong Kong and China stock markets have been falling recently. Is the real economy that bad? Mainland telecom operators, at least, paint a much brighter future. By the end of November last year, there were nearly...
  • The Hong Kong dollar has fallen to 7.83 from 7.75 against the greenback, marking the end of one-way inflows. That followed a rally which saw the local unit gain 25 percent in the past 18 months. Photo: Bloomberg

    Why speculators are targeting the Hong Kong dollar, not the yuan

    - Jan 22, 2016 6:02pm
    The signs are there — an A-share market meltdown, a sharp renminbi devaluation, turmoil in the Hong Kong stock market and a falling Hong Kong dollar.  So, are we seeing a replay of the 1997-1998 Asian...
  • A demonstration of a vehicle on auto-pilot at the Consumer Electronics Show. Photo: CNSA

    A third Industrial Revolution is on its way

    - Jan 15, 2016 4:31pm
    I attended the annual Consumer Electronics Show in Las Vegas days ago. The CES is a showcase of the world’s technology development. This year, I didn’t see as many revolutionary products as it had in previous years,...

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