Date
25 May 2017

Hao Chenglin

Columnist at the Hong Kong Economic Journal
  • Ctrip and Qunar have agreed to merge amid intensifying competition in the Chinese online travel service industry. Photos: Bloomberg

    Why China O2O sector will see more consolidation

    - Oct 31, 2015 8:04am
    Ctrip.com International Ltd., China’s largest online travel company, has agreed to merge with its rival Qunar Cayman Islands Ltd. The deal will create a dominant online travel service company in the mainland with nearly 70 percent...
  • Those who think home prices will continue falling assume the Federal Reserve will raise interest rates soon. Photo: HKEJ

    The biggest blind spot in property analysis

    - Oct 23, 2015 4:44pm
    Hong Kong’s real estate market has started to cool down recently, arousing heated debate on whether the trend will continue. In this article, rather than expressing my opinion on the property market, I want to discuss...
  • The central bank's reluctant moves are not enough for the market to regain its confidence. Photo: Bloomberg

    QE measures may only bring temporary relief amid deflation risk

    - Oct 16, 2015 2:47pm
    When China released the latest Consumer Price Index (CPI) on Wednesday, people realized why the People’s Bank of China (PBoC) rushed to launch its “quantitative easing” (QE) measures over the weekend. The inflation gauge was up...
  • Dianping is merging with rival online-to-offline service provider Meituan to create an entity worth about US$15 billion.

    Why change is the only constant in business

    - Oct 14, 2015 5:00pm
    On a trip to Hong Kong recently, a Chinese businessman was stunned by he said was the apparent contrast in internet-related consumer businesses between mainland cities and Hong Kong. Consumers can find some group buying discounts for...
  • Charles Ellis (left) and Burton Malkiel have co-written The Elements of Investment, an easy-to-read guide on life-long investment principles. Photo: YouTube

    How veteran stock investors make their bets

    - Oct 10, 2015 8:01am
    Warren Buffett asks you three questions. First, if you buy hamburgers for the rest of your life, would you wish beef prices to keep rising or falling? Second, if you change cars every couple of years,...
  • IMAX China Holding Inc. is going public in Hong Kong next week. Will investors be able to obtain a share of the profits the firm is making? Photo: HKEJ

    Insights from IPOs

    - Oct 2, 2015 3:53pm
    “Lost in Hong Kong”, a Chinese comedy set in the city, raked in more than 800 million yuan (US$126 million) within five days of its release in mainland China. The megahit is the latest example of...
  • China Vanke, China's largest real estate company, has a market cap of just 180 billion yuan, making it an easy target of hostile takeovers. By comparison, Sun Hung Kai Properties is worth HK$300 billion. Photo: Bloomberg

    Why China’s property sector will remain weak

    - Sep 26, 2015 8:04am
    Who is the largest shareholder of China Vanke Co. Ltd (02202.HK)? Hint: It’s not founder and chairman Wang Shi. He holds less than 0.1 percent of the company. China Resources Group has been the largest shareholder...
  • Chipmakers are is still losing money while manufacturers of smartphones and other mobile devices are making a killing in the market. Photo: Xinhua

    What’s keeping investors from embracing chipmakers?

    - Sep 26, 2015 8:01am
    There have been many articles recommending stocks to readers, but how could the truly valuable ones be that many? The more useful suggestions are those that recommend the opposite — avoid stocks with a high chance...
  • Warren Buffett has built an enviable portfolio by seeking out investment opportunities when others panic. Photo: Bloomberg

    Why investors must look beyond Fed moves

    - Sep 16, 2015 6:09pm
    Global investors are paying close attention to the US Federal Reserve as it begins a two-day meeting Wednesday. Now what exactly should the investors do after the central bank rate announces its rate decision? Should they...
  • Don't just look at the numbers to get a handle on the markets. Watch what those in the know are doing. Photo: Bloomberg

    Another way to check the valuation of Hong Kong stocks

    - Sep 11, 2015 6:14pm
    The historical price-earnings ratio for the Hang Seng Index dropped to 8.5 times and the Hang Seng China Enterprise Index’s P/E ratio fell to 6.5 times, both record lows. However, the market remains divided on whether Hong...
  • Puzzled about what to do in this roller-coaster market? Sit tight until Beijing is done with its interventions. Photo: CNSA

    What should investors do amid Beijing’s interventions?

    - Sep 9, 2015 5:09pm
    The three mainland Chinese securities exchanges intend to introduce a “circuit breaker” mechanism. Draft regulations provide for trading to be suspended for 30 minutes when the CSI Index rises or falls 5 percent. If the index...
  • Share prices of mainland banks are yet to full reflect the various problems facing the Chinese economy. Photo: Bloomberg

    Why China banking stocks may fall further

    - Sep 2, 2015 6:09pm
    China’s top state-owned banks reported modest first-half earnings growth along with another spike in bad loans. The rise in bad loans is not surprising, given the nation’s economic slowdown. However, the negative factors are yet to...
  • The most dynamic sectors, such as retail and home appliances, are dominated by private companies. Photo: chinaretailnews.com

    How bid by Beijing to boost economy with bull market backfired

    - Aug 28, 2015 4:10pm
    The global economy has gone through massive financial turmoil every seven years. All financial crises stem from debt. Prior to the 1997 Asian financial crisis, Southeast Asian countries borrowed huge amounts in US dollars in the...
  • A weaker yuan will make Hong Kong goods more expensive for mainland shoppers. Photo: HKEJ

    Hong Kong economy to suffer from RMB depreciation

    - Aug 22, 2015 8:01am
    The market has been focusing on the foreign debt burden of Chinese companies after the central bank allowed a 2 percent drop in the value of the renminbi on Aug. 11. However, investors seem to have...
  • The renminbi's deep devaluation paved the way for China’s export miracle. Photo: Bloomberg

    How RMB depreciation will affect Hong Kong

    - Aug 12, 2015 4:20pm
    China’s economy experienced a golden period from 2002 to 2007, when exports expanded at a staggering rate of 30 to 40 percent. Economic growth hit 8 percent each year, and even set a record high of...
  • China's property market continues to grapple with high inventory, prompting many debt-strapped developers to offload housing units at a discount. Photo: Xinhua

    Why market signals are always mixed

    - Aug 8, 2015 8:00am
    China’s housing market has shown an uptick since the government relaxed home purchase restrictions. The move prevented a crash that could have resulted from efforts to curb high-speed monetary expansion. Still, the property market continues to...
  • MTR Corp., which is 15 percent below its 52-week high, will enjoy steady growth as more railway lines are built. Photo: Xinhua

    Why long-term investors don’t bother with the market slump

    - Jul 29, 2015 5:16pm
    Is the stock price fall a temporary dip or a structural decline? The four sectors I’ve recommended earlier still have rosy growth prospects. Power stocks are set to benefit from lower coal prices. We’ve seen that the...
  • China has surpassed the US market in iPhone sales for the first time. Photo: Bloomberg

    China investors should take a look at global stocks

    - Jul 22, 2015 4:27pm
    Investors have been fretting over Beijing’s market intervention measures. The earnings of some Chinese companies also have let them down. They should start looking beyond Hong Kong and mainland markets. The earnings per share (EPS) of...
  • A chimp takes over our brain during stressful situations. The trick is to manage it so we can make good decisions. Photo: AFP

    Why investors act like chimpanzees

    - Jun 27, 2015 8:00am
    Have you ever experienced this: Your stock drops 10 percent in one trading session, and after you are finally able to sell it, the stock rebounds and even hits a new high. Don’t blame yourself. Blame your...
  • Chinese markets may see some correction following the recent run-up, providing an opportunity for investors to load up again on some quality stocks. Photo: Xinhua

    Be greedy when others turn fearful

    - Jun 17, 2015 5:26pm
    Following the recent rally, most quality stocks have put on substantial gains, and even the relatively weaker firms saw their prices shoot up. This suggests that a correction might be in the offing.  One should bear...

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