A Personal Finance and Investment Arm of The Business Times


Fast and Furious 8


As Fast and Furious 7 made its cinema debut to sell-out crowds over the Easter weekend, I believe the producers of Fast and Furious 8, the next sequel, if there is going to be one, will most likely be film in Hong Kong. 

The Hong Kong market, unlike boring Singapore, have gone on turbocharge in the past month, benefiting from the frenzy of Chinese stocks.  Mainland Chinese investors who have made tremendous money in the Shanghai Composite, which doubled from May 2015 in the past 8 months, started pouring money into the Hang Seng Index, HSI via the Shanghai-Hongkong Stock Connect. The HIS surged a record 1,685 points or 6.4% to 27,922, intra-day high on Thu 9th Apr 2015, the most since 2011.  This was already after the HIS has shot up almost 4% on Wed 8th Apr 2015!

After propelling the Shanghai Composite up a 100% from 2,005 on 19th May 2014 to 4,034 on 10th Apr 2015, mainland investors are swooping down the highway at a fast and furious pace in buying up Hong Kong equities through the North/South Connect exchange link.  The daily quota of $10.5 billion yuan was hit on both days on Wed 8th Apr and Thu 9th Apr.

The fast and furious rise in the Hang Seng Index is matched by a sharp jump in turnover which soared to a record of HK$292 billion (S$51.4 billion) on Thu 9th Apr 2015, the second trading day after Easter holidays.  In comparison, in boring Singapore market, the SGX turnover was only $1.35 billion, which already exceeded the average of $1.1 billion for 2014.

Chinese investors snapped up the entire 10.5 billion yuan (S$2.3 billion) daily investment quota for buying Hong Kong stocks under the North/South stock connect which have forced authorities to relook at the daily quota with a view of upgrading the amount.

Not surprisingly, the HSI crossed 28,000 on Mon 13th Apr for the 1st time in 7 years, also buoyed by the CSRC ruling to allow individuals to open up to 20 brokerage accounts.

Indeed the key ingredients on an exciting bull market, reminiscent of my heydays in 1997 and 2007 are there – fast trading pace, huge trading volumes, records highs for stocks prices and numerous stories/rumours on stocks which propelled greater excitement in the underlying stocks. 

Fast and Furious 7 featured lovely sports cars parachuting from airplanes to the ground - the HSI, currently is skyrocketing with mainland Chinese investors adding to their horsepower. 

If only Singapore’s boring FTSTI can just match 10% of such horsepower.  Haiz.

I would certainly continue to “make hay while the sun shines” in Hong Kong as capturing bull markets at prescient timing is the essence of making money in stock markets.  Thereafter, you can afford to “stand and stare” and “smell the roses” at your leisure.

Gabriel Yap
Gabriel Yap

Mr Gabriel Yap,CFA was an eminent stockbroker who retired from stockbroking in 2009 to devote himself to philanthropy to help the needy, poor and handicap globally. He has donated and assisted Charities Aid Foundation, Australia (CAF), a not-for-profit donor funds management business.  

Mr Yap is also Executive Chairman of GCP Global Pte Ltd, an investment firm that invest in both direct capital markets, bonds, real estate, commodities, foreign exchange and builds businesses. Mr Yap appears regularly for the TV media like Channel News Asia and Bloomberg and radio channels like FM93.8 for their various investment programs.

Previously Mr Yap has also lectured at renowned government institutions like the SEASEN Course for the Monetary Authority of Singapore and at AsianDevelopment Bank. Mr Yap has also lectured at financial institutions like the Stock Exchange of SingaporeInstitute of Banking and Finance, the Institute of Certified Public Accountants, the Singapore Institute of Management and the Securities Investors Association of Singapore.

In 2010, the venerable Reader's Digest magazine created the Money Savvy column in their magazine, helmed by Mr Yap who writes on all things finance and answers questions from the magazine's subscribers.

Mr Yap presently splits his time between Melbourne, Europe and Singapore.