Message from Coach
*On this week’s market summary:*
💡1. HSBC has fended off a shareholder revolt ahead of its annual meeting after a $2.4tn coalition of investors agreed to back the bank’s climate change plans. Amundi, Man Group, and 13 other large investors in January filed a resolution for HSBC’s May AGM calling for the bank to curtail its financing of fossil fuels. Asset managers including BlackRock had already come under pressure to back the proposal. The bank pledged to report on the process of its climate change efforts on an annual basis in its report and accounts — something investors have been urging all companies to do.
💡2. In a sign that China’s efforts to attract foreign investors and businesses are gaining traction, half of the American companies operating in China said the investment environment was improving, according to a survey released on Tuesday. Only 12 percent of the 345 US firms surveyed by the American Chamber of Commerce in China said the investment environment was deteriorating, the lowest proportion since the question was first introduced in 2012. More than one-third of companies also said they would cut or leave their investment in China unchanged, and another 37 percent said they would increase investment by up to 10 percent, the survey showed.
💡3. Swire Pacific, the parent company of Hong Kong’s struggling Cathay Pacific Airways, has reported its first-ever annual loss and warned of further trouble ahead in 2021. The British-controlled group reported a HK$10.99 billion (US$1.42 billion) loss last year, primarily caused by an unprecedented slump at its 45 percent-owned airlines, according to an earnings statement on Thursday. Swire made a profit of HK$9 billion in 2019. “We continue to face significant challenges and uncertainties in 2021 as a result of Covid-19. The effect on the aviation division, particularly Cathay Pacific, is severe,” said the company’s chairman, Merlin Swire.
💡4. Hong Kong and mainland China stocks rose, mirroring gains in Asian markets after US equities charted new records amid lower bond yields and economic recovery hopes. The Hang Seng Index climbed for a second day, rising 0.6 percent to 29,012.96 at the local noon break on Tuesday. The Shanghai Composite Index added 0.2 percent, rebounding from a 1 percent slump on Monday sparked by concerns that improving economic conditions will lead to policy normalization. Stock benchmarks from Japan to South Korea advanced by at least 0.4 percent.
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.