17 December 2018

Finance & Property

  • Goldman Sachs has been under scrutiny for its role in helping raise US$6.5 billion through three bond offerings for 1MDB. Photo: Reuters

    Malaysia files charges against Goldman Sachs over 1MDB scandal

    Dec 17, 2018 5:33pm
    Malaysia has filed criminal charges at home against Goldman Sachs and two of the US bank’s former employees in connection with a corruption and money laundering probe at state fund 1MDB, Reuters reports.  Goldman Sachs has...
  • ECB president Mario Draghi has been reminding eurozone governments that they needed to implement structural reforms and use the period of low rates to deleverage. No one listened. Photo: Reuters

    The ECB’s quantitative easing failure

    - Dec 17, 2018 1:28pm
    The main reason why the European Central Bank’s quantitative easing program has failed is that it started from a wrong diagnosis of the eurozone’s problem – that the European problem was a demand and liquidity issue,...
  • Investors should brace for more downswings on stock markets as the global economy faces many challenges, BIS says. Photo: Reuters

    Markets could see more turbulence as easy money era ends: BIS

    Dec 17, 2018 8:59am
    Recent sharp selloffs across global financial markets are probably the first of many, as investors adjust to a world of tighter monetary conditions and the threat of economic downturn, the Bank of International Settlements (BIS) said...
  • Sydney (left) saw office rental increases this year while Japan property is set to gain from Tokyo's hosting of the 2020 Olympics. Photo: AFP/Bloomberg

    Outlook for Asia-Pacific REITs: Japan, Australia promising

    - Dec 14, 2018 5:03pm
    My team and I have recently published our firm’s Outlook for 2019. Our top call is Australia and Japan. Australia’s rental upward cycle started in 2016, and this year we have continued to see rental increases...
  • Globally, just 36% of total IT spending of banks is devoted to front office and initiatives that will change the bank. This needs an improvement, observers say. Photo: Reuters

    Long-term thematic opportunities in financial innovation

    - Dec 14, 2018 4:51pm
    The Hong Kong Monetary Authority (HKMA) in 2017 announced seven initiatives to move Hong Kong into a new era of smart banking. Virtual Banking, Open API and the Faster Payment System are the latest buzzwords that...
  • Data center demand will continue to grow due to the advance of cloud computing and technologies such as big data. Photo: Sunevision

    Why HK’s latest data center land plot drew so many bids

    - Dec 14, 2018 9:06am
    The Hong Kong government sold on Wednesday, for HK$5.46 billion, the second land parcel specifically earmarked for the purpose of building a data center. The auction attracted nine bidders and the winning bid, at HK$4,500 per square...
  • The Fed's balance-sheet reduction has led to a tighter liquidity environment in the US, market observers say. Photo: Reuters

    When will the Fed stop its quantitative tightening?

    - Dec 13, 2018 11:02am
    The Nasdaq index dropped over 3 percent last Friday even though there was no major negative news that day. Such slide is evidence that what’s really hurting the market is a tightening liquidity environment. To gauge...
  • HKEx chief executive Charles Li  plans to introduce a full-scale reform of market rules and business development to embrace the new economy. Photo: HKEJ

    HKEx eyes world’s first digital asset exchange

    - Dec 12, 2018 5:09pm
    The Hong Kong Exchanges and Clearing Limited (HKEx) is exploring the feasibility of establishing the world’s first digital asset exchange, as the bourse’s chief executive Charles Li Xiaojia revealed at the latest HKEJ Economic Summit.  Li...
  • Focusing on the fundamentals of a business should be far more rewarding than guessing whether the stock market is going to rise or fall in the next few days, weeks or months. Photo: Reuters

    How much should an investor worry about the trade war?

    - Dec 11, 2018 9:55am
    Making investment decisions based on predictions of political and economic changes is a risky proposition because predictions are often wrong.  Even if one is able to make a correct prediction once or twice, all the gains...
  • Despite the gyrations in the market, it is too soon to say how the new world of digital currencies will play out. Photo: Reuters

    Betting on dystopia

    - Dec 11, 2018 9:36am
    With the price of Bitcoin down 80 percent from its peak a year ago, and the larger cryptocurrency market in systemic collapse, has “peak crypto” already come and gone? Perhaps, but don’t expect to see true...
  • The investors' group called on governments to phase out thermal coal, put a “meaningful” price on carbon emissions and gradually get rid of subsidies for fossil fuels. Photo: Reuters

    Investors managing US$32 trillion in assets urge climate action

    Dec 10, 2018 9:09am
    Global investors managing US$32 trillion in assets have called on governments to accelerate steps to combat climate change, Reuters reports. A total of 415 investors from across the world including UBS Asset Management and Aberdeen Standard...
  • Sino Land is selling the first batch of flats of its Grand Central development in Kwun Tong at a notable discount from the average price of  second-hand units in the neighborhood. Photo: HKEJ

    Why Sino Land offers its new Kwun Tong project cheap

    - Dec 7, 2018 4:51pm
    Sino Land has launched the first batch of 205 units of its Grand Central development in Kwun Tong at an average price of HK$17,388 per square foot. That represents a notable discount from second-hand flats in...
  • Fixed income investors are increasingly incorporating environmental, social and governance (ESG) factors into the assessment of credit risk. Photo: Bloomberg

    ESG can and should be a key part of credit investing

    - Dec 7, 2018 4:48pm
    ESG (environmental, social and governance) investing is rapidly growing in popularity as an investment theme around the world, and this couldn’t be truer than in Asia. ESG integration is a key component of fundamental research and...
  • Bank for International Settlements chief Agustín Carstens said the huge amounts of data that big internet companies gather on their customers meant they potentially have advantages over established banks. Photo: Bloomberg

    Internet giants pose existential threat to banks: BIS chief

    Dec 5, 2018 9:35am
    Technology giants such as Amazon and Alipay pose an existential threat to traditional banks, Bank for International Settlements chief Agustín Carstens said. Carstens, who took charge of the central bank umbrella group a year ago, said...
  • Signs are emerging that China's property market is starting to lose steam. Photo: Xinhua

    Topless models show China property market not as hot as before

    - Dec 3, 2018 1:49pm
    Is there a more telling sign than this that the property market in China is not as exciting as before? In Nanning, capital of the Guangxi Zhuang Autonomous Region which is just a two hours’ flight from...
  • The China Financial Futures Exchange said it is relaxing the rules after having “comprehensively evaluated the market risks and actively improving the supervision system”. Photo: AFP

    China eases index futures trading rules

    Dec 3, 2018 9:42am
    China’s financial futures exchange said it is further relaxing index futures trading rules, reducing margin requirements, cutting trading fees and allowing more trading activities, Reuters reports. In a statement, the China Financial Futures Exchange said it...
  • Some of the units at the T-Plus residential project in Hong Kong's Tuen Mun district measure just 128 square feet in size. Photo: HKEJ

    Softening property market a big test for tiny flats

    - Nov 30, 2018 8:58am
    The T-Plus residential project in Tuen Mun was launched on Wednesday with an average price of nearly HK$17,000 per square foot for the first batch of 73 apartments. It’s a joint venture project between mainland developer...
  • Mergers and acquisitions where Hong Kong financial firms were targets have totaled US$1.15 billion so far this year, with 2018 potentially its lowest in 13 years, according to data from Dealogic. Photo: Reuters

    M&A deals in HK finance sector fall prey to China crackdown

    Nov 28, 2018 8:38am
    Mergers and acquisitions targeting Hong Kong financial firms have slumped this year, with insurance sector deals particularly hard hit, as China’s moves to tighten capital controls and crack down on corporate debt have driven mainland buyers...
  • To investors who anticipate a favorable Brexit outcome, domestically-focused UK companies, which have been hit hard, offer interesting investment opportunities, observers say. Photo: Reuters

    European equities: Some opportunities, yet no screaming buys

    - Nov 27, 2018 2:13pm
    European equities have performed poorly this year. Weak manufacturing purchasing managers’ indices were a significant factor that led to the slide in markets across Europe. We believe that the decline does not yet provide a clear...
  • Germany’s Allianz Group has been allowed to establish China’s first foreign insurance holding company, while Hong Kong’s Chiyu Bank has been approved to set up a branch in Shenzhen. Photo: Reuters/HKEJ

    China grants access to two more foreign financial institutions

    Nov 26, 2018 10:21am
    China has given the go-ahead for two more foreign financial institutions to set up local subsidiaries, bringing the total number of approvals to 12, Reuters reports. Germany’s Allianz Group has been allowed to establish China’s first...

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