18 January 2019


  • Fed chairman Jerome Powell has been accused of sending mixed signals to the market in relation to the pace of monetary policy adjustment. Photo: Reuters

    Fed chief keeps confusing the market

    - Jan 16, 2019 11:12am
    Equity markets witnessed a remarkable bounce over the last two weeks. In Hong Kong, the Hang Seng Index rallied 7 percent from the trough since Christmas Eve, while in the US the S&P 500 index gained 11...
  • Filing charges against some hackers, the US securities regulator outlined the cyber-crime risks that confront financial markets. Photo: Bloomberg

    US charges hackers, traders with stealing SEC filings

    Jan 16, 2019 8:53am
    US authorities on Tuesday charged a suspected Ukrainian computer hacker and several traders with scheming to trade on market-moving corporate earnings news stolen from a US Securities and Exchange Commission database, Reuters reports. The charges against...
  • Chinese stocks have become undervalued following the markets' steep slide last year, a CSRC official has noted. Photo: China Daily

    Chinese officials putting weight behind equity market

    - Jan 15, 2019 10:17am
    Chinese officials are again attempting to talk up the stock market, just like what they did in 2015. So, the question arises: are authorities trying to create another bull market through manipulation? Fang Xinghai, vice chairman...
  • HSBC says it has settled over three million forex trades using blockchain in the last year. Photo: Bloomberg

    HSBC settles US$250 bln forex trades on blockchain in last year

    Jan 15, 2019 9:42am
    HSBC said on Monday that it has settled US$250 billion worth of forex trades using blockchain in the last year, Reuters reports. The London-headquartered bank settled over three million forex trades and made over 150,000 payments...
  • History shows that unorthodox government support for equity markets can easily backfire in China as such moves tend to encourage hordes of speculators. Photo: Reuters

    Should PBoC directly buy A-shares to support the market?

    - Jan 11, 2019 10:38am
    Shanghai and Shenzhen bourses slumped 25 percent and 34 percent respectively last year. Amid the equities slide, some brokerage houses and media have been suggesting that the People’s Bank of China (PBoC) should consider buying A-shares...
  • Federal Reserve Chairman Jerome Powell has said he considers the central bank's benchmark interest rate to be near a neutral level. Photo: Reuters

    Why March is a critical month for global investors

    - Jan 9, 2019 12:09pm
    The People’s Bank of China has announced a 1 percentage point cut in banks’reserve requirement ratio, and the market has responded more positively than it did to multiple cuts last year. More importantly, the renminbi remained...
  • TransUnion promises to strengthen the security of its computer system during a meeting of the Legislative Council's Panel on Financial Affairs on Monday. Photo: Bloomberg/HKEJ

    TransUnion online services suspended until security issues fixed

    Jan 8, 2019 5:13pm
    Consumer credit reporting agency TransUnion said its online services in Hong Kong will remain suspended until an ongoing investigation of security loopholes found in its computer system is completed. Appearing before the Legislative Council’s Panel on...
  • Hong Kong online shoppers can no longer use Octopus to settle transactions with Taobao. Photo: HKEJ

    HKMA must negotiate new mainland deal on payment platforms

    - Jan 8, 2019 10:13am
    Hongkongers who shop on Taobao had various payment tools such as AlipayHK, Octopus, PPS, JETCO and credit cards to settle their transactions. But from the start of this year, they can only use AlipayHK, PPS and credit cards...
  • NYSE and Nasdaq are set to face fresh competition as major Wall Street players plan to set up a new bourse. Photo: Reuters

    Wall St firms plan new low-cost stock exchange

    Jan 8, 2019 8:53am
    A group of nine financial institutions, including Morgan Stanley, Fidelity Investments and Bank of Bank of America Merrill Lynch, plan to launch a low-cost bourse that will compete with the New York Stock Exchange and Nasdaq....
  • Chinese banks are scrambling for mortgage clients amid the economic slowdown. Photo: CNS

    A Chinese bank launches relay mortgages

    - Jan 7, 2019 4:37pm
    A branch of Agricultural Bank of China in Hangzhou in eastern China’s Zhejiang province has launched a relay mortgage, which allows parents and their children to jointly apply for a loan. The bank said the product...
  • A mobile app is available to allow investors easy access to the Velotrade platform to check the latest invoice offerings. Photos: Reuters, Velotrade

    How a startup makes it easier for SMEs to get trade finance

    - Jan 4, 2019 3:48pm
    While financial technologies related to peer-to-peer lending, insurance, remittance and digital payments have been getting all the attention, SME trade finance, itself a huge market, is much less talked about. Owners of small and medium sized...
  • 'Dogs of the Dow' investing strategy has worked well in the US in 2018, helping limit the losses amid a broad market slide. Photo: Reuters

    Does the ‘Dogs of the Dow’ strategy work for HK equities?

    - Jan 4, 2019 12:20pm
    ‘Dogs of the Dow’ has been a rather popular strategy with US equity investors. Let’s see if the strategy, which calls for purchase of laggard blue-chips with the highest dividend yields, works when applied to Hong...
  • CICC's forecast that US equities would rise in 2018 proved incorrect, but it was right in predicting increased market volatility. Photo: Reuters

    The unpredicatable Mr Market

    - Jan 2, 2019 10:07am
    Most investors have probably suffered losses over the course of 2018, given the weak performances of China, Hong Kong and US equities. There are over 6,000 mutual funds in China, most of which are fixed income...
  • Following President Donald Trump’s success at turbocharging an already hot US economy, more governments are looking to pump fiscal stimulus into their economies. Photo: Reuters

    Four key investment themes for 2019

    - Dec 31, 2018 2:15pm
    The global economy, which has been doing fairly well, is likely to become even less synchronized and more fragmented. This would continue a trend that began in earnest in 2018 as market returns turned negative. Trade...
  • China has warned domestic online financial information providers not to distort fiscal and monetary policies or put out any content that undermines the nation’s financial stability. Photo: Bloomberg

    China online financial info providers receive new content rules

    Dec 27, 2018 10:08am
    China’s cyber watchdog has issued new regulations for domestic financial information providers, in an apparent crackdown on online content deemed detrimental to the country’s financial stability, Reuters reports. The Cyberspace Administration of China (CAC) was quoted...
  • Following steep losses on financial markets, US Treasury Secretary Steven Mnuchin is said to have sought assurances from the top US banks that they don't have liquidity problems or facing clearance or margin issues. Photo: Reuters

    US Treasury chief calls bankers amid Wall St rout

    Dec 24, 2018 8:57am
    US Treasury Secretary Steven Mnuchin called top US bankers on Sunday amid an ongoing rout on Wall Street and made plans to convene a group of officials known as the “Plunge Protection Team”, Reuters reports. “Today...
  • Greentown China Holdings will pay a hefty premium for an 11.55 percent stake in Aeon Life Insurance. Photo: HKEJ

    Developer Greentown’s odd move to buy an insurer

    - Dec 24, 2018 8:38am
    Soon after Chinese developer Greentown China Holdings (03900.HK) announced its plan to spend 2.72 billion yuan (US$393.98 million) to acquire an 11.55 percent stake in Aeon Life Insurance, investors voted with their feet and Greentown shares...
  • The Fed's tightening cycle and the US-China trade war have affected stock markets worldwide. Photo: Reuters

    2019 global equity market outlook

    - Dec 21, 2018 1:25pm
    The outlook for global equities next year will highly depend on two major developments.  First, whether the Federal Reserve will slow down the pace of its tightening cycle or even halt the rate hikes altogether.  Second,...
  • The two biggest barriers to transforming the financial ecosystem of Hong Kong are legacy systems and legacy thinking, says Mitesh Soni of fintech firm Finastra. Photo: Bloomberg

    The big roadblocks to Hong Kong’s smart banking ambition

    - Dec 19, 2018 5:04pm
    Banks have historically spent a large amount of their IT budgets on maintenance and stability rather than innovation. Viewing Fintechs as disruptors and competitors, traditional banks are closed entities that have been guarding their proprietary assets,...
  • If the promises of digitalization are to be fulfilled, the world will need to align financing and investment strategies more tightly to sustainable development outcomes, experts say. Photo: Reuters.

    Harnessing the digital revolution for sustainable development

    - Dec 18, 2018 10:31am
      Financial digitalization – the digital revolution’s system-level transformation of the entire financial ecosystem – could catalyze global efforts to finance sustainable development. According to the McKinsey Global Institute, the expanded use of financial technology could...

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