Message from Coach
On this week’s market summary:
📍1. Goldman Sachs is set to take full ownership of its securities joint venture in China, as Western investment banks seek to expand their presence across the country’s booming financial industry. The US bank has signed a definitive agreement and initiated regulatory processes to acquire all of the outstanding shares in Goldman Sachs Gao Hua from its local partner, Beijing Gao Hua Securities, according to an internal memo seen by the Financial Times on Tuesday. It currently holds 51 per cent in the venture. Wall Street’s biggest firms have rushed to boost their presence in China as the country opens up its financial system to foreign investment. That long-term shift has gathered pace this year despite escalating geopolitical tensions between Beijing and Washington.
📍2. Country Garden Services Holdings, the property management arm of mainland Chinese developer Country Garden, plans to raise HK$7.78 billion (US$1 billion) from the sale of new shares, which it plans to use to fund potential mergers and acquisitions. The company is placing 173 million shares at HK$45 each, according to an exchange filing on Friday. The price represents a 9.5 per cent discount to the closing price on Thursday. It appointed China International Capital Corp, JPMorgan Chase and UBS to arrange the placement. The company’s shares fell by as much as 7.1 per cent in the morning before paring losses to trade 4.5 per cent lower at HK$47.45 after the lunch break. The benchmark Hang Seng Index rose 0.3 per cent.
📍3. A sell-off in sterling continued on Friday and London-listed banks fell after Britain warned there was a “strong possibility” it would leave the EU without a trade deal. The pound slipped a further 0.6 per cent against the dollar to purchase $1.3216, taking its loss this week to 1.6 per cent — putting the currency on track for its worst performance since September. On Thursday evening, UK prime minister Boris Johnson told the nation to prepare for the Brexit transition to expire at the end of the year without a trade agreement.
📍4. Foreign investors are flocking to South Korea’s red-hot stock market, one of the world’s best-performing this year, as signs of a strong economic rebound from Covid-19 fuel demand. The country’s benchmark Kospi Composite has gained about 90 per cent since the height of coronavirus-induced market turmoil in March. The rally has been boosted by strong investor appetite for shares in semiconductor companies, which could benefit from improvements in global capital expenditure next year. Global funds have bought a net $5bn of South Korean shares since the start of November, with purchases of the country’s blue-chip shares hitting the fastest pace in four years.
One of the must-ask interview questions for banking and finance is: “Have you read any news recently?”, with the follow-up questions: “How would you link this news to the market and what investment suggestions would you give to your clients based on this news?”
Showing your market sense and ability to provide feasible investment ideas would help to differentiate you from other candidates. Therefore, apart from the weekly news update / investment insights, we have also generated this Weekly Market Summary for you to have a quick understanding of the market development and tips to answer some hot discussion topics.
Take a look of the summary and WhatsApp us in the group if you have questions.