20 August 2017

Hao Chenglin

Columnist at the Hong Kong Economic Journal
  • 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:

    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...
  • 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...

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