23 August 2017


  • Bank of China Hong Kong will offer three types of notes in September to celebrate its 100th anniversary. Photo: Bloomberg

    Why is Hong Kong obsessed with commemorative banknotes?

    - Aug 22, 2017 2:11pm
    It has become almost like a knee-jerk reaction for note-issuing banks to print money to celebrate their anniversary or any special occasion. They never get tired of it because it almost always works. Standard Chartered celebrated its...
  • Yen is considered one of the major currencies that is still some way from its fair value. Photo: Bloomberg

    The pendulum swings

    - Aug 21, 2017 4:07pm
    A frequent client question concerns our preferences amongst the major currencies. Our existing ranking is the yen, then the euro, then the dollar and finally the pound. Why? Foreign exchange analysis involves a complicated mix of...
  • Commonwealth Bank of Australia is facing a potentially record fine over breaches of money-laundering and counter-terrorism financing laws. Photo: Bloomberg

    Money laundering probe exposes Australian banks’ frailties

    Aug 21, 2017 8:44am
    A money laundering probe at Commonwealth Bank of Australia is the latest in a slew of scandals denting the reputation of Australian banks as simple, reliable lenders at the forefront in the battle against financial crime....
  • North Korea has threatened to attack the US territory of Guam, but has since backed off. Photo: Reuters

    Will Trump declare war on North Korea?

    - Aug 16, 2017 4:51pm
    US President Donald Trump has vowed to respond with “fire and fury” after North Korea threatened to attack the US territory of Guam. His comment sent Hong Kong shares tumbling nearly 1,000 points. The threat of...
  • Inflation and corporate borrowing rise during the late stages of a business cycle, levering up returns to shareholders — for a while. Photo: Reuters

    If Inflation is fizzling out, can profits be far behind?

    - Aug 15, 2017 3:54pm
    For decades, experts at the US Federal Reserve, academic economists and portfolio managers have been at war with inflation — the phenomenon of price increases without commensurate productivity gains. Investors and policymakers alike hate inflation because...
  • Dave Chapman is one of the advisers in the OpenANX initiative, which raised US$18 million in its token sale recently. Photo: HKEJ

    Initial coin offering: A mix of crowdfunding and share sale

    Aug 11, 2017 10:36am
    Bitcoin and Ethereum went wild in the first half of 2017, and the hype is likely to continue in the coming months, driven by the initial coin offering craze. Initial coin offering (ICO) can be considered...
  • A Paypal employee holds photographs of herself during celebrations for the company's relisting on the Nasdaq in New York in July 2015. Photo: Reuters

    PayPal to expand lending offering with acquisition

    Aug 11, 2017 8:01am
    Payments firm PayPal Holdings Inc. has agreed to acquire online lending company Swift Financial in a bid to expand its business that provides working capital to merchants, Reuters reports. The acquisition will allow PayPal to offer...
  • Thomas Glucksmann (L), head of marketing at Gatecoin, poses for a picture with Aurélien Menant, founder and CEO of the crypto-currency exchange.  Photo: HKEJ

    Ethereum seen as hedge against financial crisis: Gatecoin

    Aug 10, 2017 10:36am
    “We received lots of enquiries from inexperienced investors over the last two to three months. These are people who have never even invested in the stock market before, and they have no idea what is,”...
  • Chinese authorities use the term gray rhino to describe large and obvious problems that are right in front of us but ignored. Photo: Animalia Life

    China set to tackle ‘gray rhino’ risks

    - Aug 10, 2017 9:22am
    The term “gray rhino” has become popular in China after the National Financial Work Conference last month. It refers to large and obvious problems that are ignored until they start moving fast, as compared to black...
  • Regulatory technology is seen lagging far behind the development of financial technology. Photo: Maxxelli

    China sets up centralized clearing platform for online payments

    - Aug 9, 2017 11:20am
    China’s central bank has set up a clearing house for online payment services. The new platform, Nets Union Clearing Corp., will launch next year. All online payment services will route their transactions via the new platform....
  • Following fake news of his death, Vitalik Buterin posted a selfie online to quell the rumors which led to to a brief crash in the Ethereum crypto-currency. Photo: Vitalik Buterin/Twitter

    Ethereum has certainly gone through bubbles, says co-founder

    Aug 9, 2017 10:37am
    “I don’t think it’s really possible to force people to use Ether for any particular purpose and not use it for other purposes; it’s a general-purpose tool.” These are the words of 23-year-old Vitalik Buterin, the...
  • Technology giants are expected to underpin benchmark equity indices. Photo: Reuters

    Equity markets look lofty but chance of a collapse slim

    - Aug 8, 2017 4:12pm
    Despite the bullish market sentiment, many retail investors have chosen to stay on the sidelines, fearing they could end up being stuck with shares bought at expensive levels. As the market keeps raging ahead, more retail...
  • At this writing (Aug. 7), Ethereum is worth US$259.97, with a 3,035 percent year-to-date increase and a market capitalization of US$24.34 billion. Photo: Reuters

    A guide to Ethereum, the digital currency of the moment

    Aug 7, 2017 10:33am
    What is Ether? Ether is the value token in use on the Ethereum network. It is listed in a digital currency exchange under the code ETH and used to pay for transaction fees and computational services...
  • There may be more mergers in the defense, airline and shipping sectors as the SOE reform progresses. Photo: Reuters

    China’s SOE reform to accelerate in second half

    - Aug 4, 2017 4:26pm
    China’s GDP growth has stabilized at 6.9 percent in the first half of this year, beating market expectations. The upbeat economic growth has paved the way for various reforms. The reform of state-owned enterprises (SOEs), one...
  • Executive Councilor Joseph Yam says deficits are acceptable in order to drive economic growth and ensure long-term benefits for Hong Kong. Photo: HKEJ

    HK government has been a miser for 10 years, Joseph Yam says

    Aug 4, 2017 1:02pm
    Executive Councilor Joseph Yam criticized the government for taking a penny-pinching financial philosophy for the past 10 years, the Hong Kong Economic Journal reports. In a blog post Thursday, Yam said the government should be more...
  • The gross returns (US dollars) of the MSCI China Index were close to 25 percent in the first half of 2017. Photo: Asia Times

    ETF: A cost-effective way to invest in China’s A-share market

    - Aug 4, 2017 6:00am
    Chinese stocks have performed very well this year. According to MSCI, as of June 2017, the gross returns (US dollars) of the MSCI China Index were close to 25 percent in the first half of 2017....
  • A softer dollar contributed to strong fund inflows into Europe and Asia-Pacific ETFs. Photo: Reuters

    Global capital flowing into Europe, Asia ETFs

    - Aug 3, 2017 3:44pm
    As exchange-traded funds (ETFs) continue to gain popularity, the sector has become so big that it can now serve as a reliable indicator of global fund flows. Exchange-traded products (ETP), which had only US$79 billion of...
  • Within equity markets, high-beta markets have generally performed well against a backdrop of positive risk sentiment. Photo: Reuters

    Mid-year markets review

    - Aug 3, 2017 3:18pm
    So far 2017 has been an interesting year for investors. Buoyed by a rally in risk assets at the end of 2016, which was sparked by US President Donald Trump’s election victory, investors started the year...
  • Sunac will issue US$400 million of senior notes due in 2020 and US$600 million due in 2022. Photo: Reuters

    Sunac to raise US$1 billion to refinance debt after buying spree

    Aug 3, 2017 12:04pm
    Acquisitive Chinese property developer Sunac China Holdings Ltd. (01918.HK) will raise US$1 billion from banks to refinance its current debts, Reuters reports, citing a filing by the company. Sunac has been making a spate of high-profile...
  • The number of ultra-high-net-worth individuals grew 10 percent in China last year, and is expected to expand by 140 percent in the coming 10 years. Photo: Shuttercock

    Why wealthy Chinese need to understand succession planning

    - Aug 3, 2017 10:43am
    Wealthy Chinese must bridge serious gaps in their understanding of succession planning or risk costly legal battles and needless public squabbles. Family wealth can sometimes be more of a burden than a blessing, as discussions around...

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