24 June 2017

Hao Chenglin

Columnist at the Hong Kong Economic Journal
  • 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...
  • 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...

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