Message from Coach
*On this week’s market summary:*
▶️1. The head of Hong Kong Monetary Authority has rejected lawmakers’ call to dip into the HK$4.5 trillion (US$581 billion) Exchange Fund to finance the government’s rescue packages for companies and individuals hard hit by the Covid-19 pandemic, saying such a move would hurt the fund’s ability to defend the local currency. The demands from lawmakers came after the Exchange Fund posted its third-highest earnings ever of HK$197.8 billion last year. The HKMA chief executive Eddie Yue Wai-man, however, made it clear that the Exchange Fund should only be used to maintain the stability of the financial market and the local currency peg.
▶️2. The IMF has warned that emerging markets’ limited access to Covid-19 vaccines poses a risk to global financial stability, saying shortages could exert a drag on economic recoveries in low-income countries. “Inequitable distribution of vaccines risks exacerbating financial vulnerabilities, especially for frontier market economies,” the IMF wrote in its latest global financial stability update. Emerging market assets have been boosted by record inflows in the first weeks of the year.
▶️3. Hong Kong stocks rose for a second day as technology leaders rallied on earnings optimism and mainland funds continued to pile into the local markets. The Hang Seng Index surged 1.8 per cent to 29,419.35 at local noon break. The gauge earlier gained as much as 2 per cent to recoup all of the 1,164-point decline last week. The Shanghai Composite Index added 0.6 per cent at 3,524.42. Tencent Holdings surged 4.6 per cent to HK$743.50, pacing gains among index members. Mainland traders were net buyers of almost HK$5 billion (US$645 million) of the stock on Monday, making it the favourite pick of the total HK$16.4 billion net inflows.
▶️4. Hong Kong is known for many things – gleaming skyscrapers, crowded spaces and cramped housing – but farming in the concrete jungle is not one of them. Now property developer Sino Group is pushing to change that with a programme under its sustainability agenda that it hopes will enhance the value of its numerous properties. Spanning 23,000 square feet, the company’s Farm Together project currently operates six plots across Sino Group’s residential and commercial properties, including a hotel. The project gives tenants of office buildings a green space where they can have picnics or take their lunch breaks closer to nature, while residents of housing projects can grow their own crops.
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.