Message from Coach
*On this week’s market summary:*
📍1. Global trade in goods and industrial production both returned to pre-pandemic levels for the first time late last year, after suffering a historic dip due to lockdowns and restrictions to control the spread of coronavirus. The volume of goods traded rose by 2.1 per cent month-on-month in November according to data from the Netherlands Bureau for Economic Policy Analysis, taking it above its December 2019 level. That was up 1.5 per cent from its level the year before, and the first increase on an annual basis since the pandemic hit. The expansion in trade was fuelled by rising demand for imports in advanced economies. China was the main beneficiary, registering a 5.6 per cent month-on-month growth in exports, but its import volumes fell.
📍2. Fund managers and bankers leaving Hong Kong for alternative financial centres have been asked to explain their decision to a range of government agencies amid concerns that Beijing’s national security law could cause departures from the Asia finance hub to multiply. Government agencies including the Securities and Futures Commission of Hong Kong, the Hong Kong Monetary Authority, the Hong Kong Financial Services and the Treasury Bureau and the Financial Services Development Council have phoned banking and asset management executives who have relocated to rival cities including Singapore and Tokyo, according to three people with direct knowledge of the calls.
📍3. Activity in Hong Kong’s commercial and industrial property market is likely to return to pre-pandemic levels this year amid hopes of an economic recovery aided by Covid-19 vaccinations and mainland investors looking to deploy capital, say market observers. Colliers International expects mainland players to step up property acquisitions, noting that China’s economic recovery and a stronger Yuan makes properties priced in Hong Kong dollars more attractive. The consultancy expects a 25 to 35 per cent jump in total investment volume to around HK$70 billion to HK$80 billion in 2021. Meanwhile, CBRE expects investors to target assets catering to fast-growing business sectors, such as technology, telecoms, food and beverage, pharmaceuticals, elderly care and education.
📍4. Global stocks started the week on a strong footing led by gains for technology shares across Asia-Pacific markets. Hong Kong’s benchmark Hang Seng index climbed 1.9 per cent on Monday while South Korea’s Kospi rose 2 per cent and China’s CSI 300 index of Shanghai- and Shenzhen-listed stocks added 1.4 per cent. Japan’s Topix index was flat. Technology stocks led the charge in Hong Kong, with shares in internet group Tencent rising by as much as 10 per cent to take the company’s market capitalisation gains for 2021 to $230bn. Tencent-backed live-streaming platform and TikTok rival Kuaishou plans to raise up to $6.3bn in a Hong Kong initial public offering, the Financial Times reported on Monday.
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.