Message from Coach
*On this week’s market summary:*
💡1. HSBC said on Thursday that it would end financing of coal mining and coal-fired power plants in the European Union and countries that make up the Organisation for Economic Cooperation and Development (OECD) by 2030, and a decade later elsewhere, following pressure from investors. The London-based bank said it would propose a special resolution on climate change and outline its ambitions to reduce carbon emissions to net zero in its loan portfolio by 2050, at its annual meeting in May. The bank, the largest of Hong Kong’s three currency-issuing lenders, said it would set a “clear, science-based” strategy with short and medium-term targets to align its lending to goals set out as part of the Paris Agreement on climate change.
💡2. The world economy is expected to grow by more than 5 per cent this year, but the recovery is dependent on a successful roll-out of Covid-19 vaccines across the globe, according to a new analysis. Global gross domestic product (GDP) contracted a historic 3.7 per cent last year due to the impact of the coronavirus pandemic, but Moody’s Analytics has forecast a rebound of 5.4 per cent in 2021, upgrading its February estimate of 4.9 per cent. Asia is expected to lead the recovery with growth of 6.9 per cent, fuelled by China’s rapid expansion and India’s turnaround.
💡3. Hong Kong’s embattled street shop market is showing signs of stabilising, with mass market restaurants taking advantage of lower rents to replace luxury and cosmetics businesses in the city’s main shopping districts. The launch of Covid-19 vaccines would help to bring the pandemic under control, and will slowly lead to a recovery in economic activity, he added. “The market generally believes that the shop sector is not far from the bottom. More businesses are likely to take advantage of this period of time, when there is still room for negotiating rents, and speed up their deals,” Wong said.
💡4. Hong Kong stocks slumped after the city’s government logged higher Covid-19 cases as a super-spreader cluster emerged and affected a growing list of financial-market executives. The Hang Seng Index tumbled 2.2 per cent to 28,739.72 at the close of trading, the most in two weeks. The benchmark fell 1.2 per cent for the week. The CSI 300 Index of the biggest stocks in Shanghai and Shenzhen gained 0.4 per cent. The gauge ended the week with a 2.2 per cent loss, a fourth straight week of setback. Hong Kong was expecting about 60 new Covid-19 cases on Friday, according to a source, with many linked to a “super-spreader” cluster at a popular fitness centre in the city.
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.