25 May 2017

Hao Chenglin

Columnist at the Hong Kong Economic Journal
  • Power generating firms may continue to benefit from industry reform. Photo: Xinhua

    How to identify Chinese stocks with strong potential

    - Jun 13, 2015 8:00am
    The mainland market is usually criticized as being policy driven. Many investors are hesitant whether to jump onto the bandwagon given that the market has already gone up substantially. In fact, a policy-driven market is not...
  • Gree Electric Appliances, an air-conditioner supplier, has a price-earnings ratio of more than 13 times. A number of leading players have emerged in various sectors but these blue chips are not being embraced by mainland investors. Photo:

    What to buy before A shares break into MSCI

    - Jun 3, 2015 7:09pm
    Hong Kong’s stock market has become a battleground for mainland Chinese retail investors and global institutional investors. They have been taking a mainland view on Hong Kong shares while looking at A shares from a foreign...
  • Some market bubbles have opened up investment opportunities but Hong Kong's 1997 property market collapse exacerbated an ongoing crisis. Photo: HKEJ

    Why market bubbles are not always a bad thing

    - May 27, 2015 4:40pm
    Since the end of the last financial crisis, China has relied on high levels of money supply to underpin economic growth. The move has benefited Hong Kong’s retail sector, China’s property market and Macau’s gaming companies....
  • China's efforts to boost consumption are yet to get reflected in the share prices of retailers such as Lianhua Supermarket Holdings.

    Why you should be overweight on China retail plays

    - May 13, 2015 5:27pm
    If you are seeking bargain-hunting opportunities in Chinese stocks, there are still some options left. Foremost among them would be mainland retail plays, which have undergone major correction in the recent past. China’s retail sales growth...
  • Huaneng Power International's profit went up nearly tenfold between 2011 and 2014. Photo: Bloomberg

    As power sector reform proceeds, push to cut emissions stressed

    - May 8, 2015 5:33pm
    The National Administration of Energy has issued two documents within one week. The first document stressed that the regulator will focus on pressing for the reform of power tariffs and optimizing the fuel trading mechanism this year....
  • Its quite possible that the Hang Seng Index will hit 32,000 points this year. Photo: HKEJ

    All you need is greed in a bull market

    - Apr 10, 2015 4:32pm
    Chinese officials have openly supported the stock market with various measures over the past year. It’s quite clear Beijing wants to make the most of its fundraising potential to benefit corporates and the economy. The market...
  • China's stock market rally has been fueled by government policy hopes rather than corporate earnings. Photo: CNSA

    What to buy in a bull market

    - Apr 1, 2015 6:15pm
    The recent rally in Chinese stocks was driven by government policy-related speculation, rather than company earnings.  Zhou Xiaochuan, the central bank governor, said on the sidelines of the parliament session last month that capital flows into...
  • A businessman puts up a poster of the late former prime minister Lee Kuan Yew at his shop in Singapore on Wednesday. Photo: AFP

    How to apply Lee Kuan Yew’s bottom-up theory in investing

    - Mar 25, 2015 5:39pm
    There’s always a debate over two different investment approaches: top-down and bottom-up.  In the former approach, one first looks at the broad economy and industries before looking at individual companies, while the latter focuses on the...
  • Solar equipment firm Hanergy has seen its shares surge due to speculative fervor, rather than actual company fundamentals, some analysts say. Photo:

    Interested in Hanergy? Check its cash-flow first!

    - Mar 18, 2015 6:50pm
    Hanergy Thin Film Power Group (00566.HK) has been definitely one of the hottest stocks in the market recently. The company has seen its share price surge 150 percent since the start of this year, and mainland...
  • Lee Kuan Yew's far-sightedness would have made him a good investment manager. Photo: Bloomberg

    If Lee Kuan Yew were a fund manager …

    - Mar 9, 2015 4:58pm
    One Man’s View of the World, written by Singapore founding father Lee Kuan Yew, offers his insightful and candid views and forecasts for the world. Some of Lee’s analysis applies well in investment. Chinese understand that they...
  • The Chinese government is serious about cleaning up the environment, so firms that supply cleaner fuels like natural gas will benefit from supportive policies. Photo: Bloomberg

    Gas stocks to benefit from clean-energy wave

    - Mar 4, 2015 4:55pm
    The story that made headlines over the weekend in mainland China wasn’t the widely expected cut in interest rates but a documentary about air pollution, Under the Dome, produced by Chai Jing. The former anchor at...
  • MTR Corp. has strong fundamentals and solid earnings prospects but the market tends to ignore these. Photo: Bloomberg

    Why a hot stock doesn’t have to look sexy

    - Feb 25, 2015 4:51pm
    In the last Year of the Goat (2003), the market focused on two major themes. One was whether the United States would attack Iraq, thereby driving up oil prices and boosting energy stocks. The other was...
  • A pedestrian walks past a China Mobile shop in Zhuhai. China Mobile helped Apple Inc. establish a foothold in the world's largest consumer market. Photo: Bloomberg

    What to do in an uptrend

    - Feb 18, 2015 1:11pm
    Wharf (Holdings) Ltd. (00004.HK) has directly benefited from Hong Kong’s retail boom in recent years. Take its flagship Times Square in Causeway Bay. It continues to draw strong traffic despite the presence of Hysan Place which...
  • US billionaire Warren Buffett is among those who has proved the merits of long-term value investing. Photo: Bloomberg

    Letter to a young investor: Try hard, play hard

    - Feb 13, 2015 5:00pm
    Dear Zijian, From your letter, I gather that you graduated from university recently and that you are focused on value investing. You say you are perplexed that your investment performance has not been as good as...
  • China is reforming its power industry to enhance efficiency and introduce competition into the sector. Photo: Bloomberg

    Power generators to benefit from industry reform

    - Feb 4, 2015 5:47pm
    It has been 13 years since China launched the first round of reforms in the power sector in 2002. In Hong Kong, the power market has a relatively small size, and power generation, transmission, distribution and...
  • Property sector has had a good ride in recent years, but utilities may be a better option for investors now. Photos: HKEJ

    Why investors should shift to utilities from property sector

    - Jan 28, 2015 6:00pm
    The residential project in Tung Chung developed by Sun Hung Kai Properties (00016.HK) is selling out quickly. SHKP rolled out 300 units in the first batch, with an entry price of HK$4 million. The firm received 14,000 applications....
  • Citic has failed to get a timely foothold in lucrative sectors in Hong Kong, forcing it to seek overseas deals. Photo: Bloomberg

    Itochu investment in Citic doesn’t make much sense

    - Jan 23, 2015 6:25pm
    Japanese trading house Itochu Corp. and Thailand’s Charoen Pokphand Group have agreed to jointly invest US$10 billion in Citic Ltd. (00267.HK) for 20 percent stake, in a deal that will make them the second-largest shareholder in...
  • Some stocks such as Walmart may look boring but they have stellar growth prospects. Photo: Bloomberg

    Golden rule: You are what you buy

    - Jan 16, 2015 6:57pm
    Value investing is far more than crunching data. Management and governance are a key part of a company’s value. Martin Lau, chief investment officer of First State Investments (Hong Kong) Ltd., shed some light on how...
  • Li Ka-shing (center) is flanked by elder son Victor Li (left) and Canning Fok at the announcement of a sweeping revamp of his business empire. Photo: NSA

    The best time to buy merged Li stock

    - Jan 14, 2015 6:18pm
    There are different theories about the landmark restructuring of the business empire of Hong Kong tycoon Li Ka-shing. However, whatever the thinking, investors should look for buying opportunities. The Li family has invested more than HK$100...

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