Seminar review: Investor Education Seminar 2015
Professional market practitioners provided in-depth analysis on the investment outlook and challenges of the Mainland market at the Investor Education Seminar 2015 jointly held by the IEC and The Hong Kong Society of Financial Analysts (HKSFA) on 18 July 2015. More than 280 members of the public attended the event.
*The views and opinions expressed in the seminar are those of the individual speakers and do not reflect the view or position of the IEC nor the HKSFA. Examples and case studies from individual speakers are intended to provide a general overview for educational purpose and reference only. Neither the IEC nor the HKSFA has advised on, passed on the merit of, endorsed or recommended any of the products/services or types of products/services referred to in the seminar. The content in the seminar does not take into account your individual needs, investment objectives and specific financial circumstances. Any parties should not solely rely on the content of the seminar to make any investment decision. Investment involves risks. You are advised to seek professional advice if necessary.
The impact of One Belt One Road on the sustainable economic development of China
Mr Nicholas Kwan (Director of Research, Hong Kong Trade Development Council)
Mr. Nicholas Kwan analysed that from an economic point of view, China’s “One Belt One Road” policy initiatives can drive the infrastructure development in the Mainland and diminish trade barriers, which will benefit Hong Kong given the increasing cross-border cooperation. As the market with the highest potential in the world, China would expect that through these new policy initiatives, a new global trade system would be introduced, which would help to rebuild the financial infrastructure, open up the service sectors and encourage outward investment.
To invest long term in the China markets - the challenges and the importance
Mr Andrew Kuet, CFA, CPA (Director of an asset management company)
Mr. Andrew Kuet advised that investors may evaluate whether the Mainland stocks are worth holding as a long-term investment by considering a number of factors. These include analysing the price performance of the stock in different economic cycles; the growth prospect of the industry or sector to which the listed company belongs in the next 5 to 10 years; leadership and decision-making quality of the management under different economic environment; how the company has taken into account shareholders’ interest in case of takeovers and merges etc as well as treatment of minority shareholders and the dividend payout over the long term.
Analysis of the infrastructure industry and its role in asset allocation
Mr Daniel Hu, CFA (Seasoned fund manager)
Mr. Daniel Hu pointed out that China would start a new round of infrastructure investment projects to drive the development of the infrastructure sector in view of possible economic downturn and its successful bid to host the Winter Olympics. Together with the “One Belt One Road” policy initiatives and driven by other favourable factors, the Mainland economy is expected to be expanded further. However, he reminded investors that like any other investment, there are potential risks associated with infrastructure projects, eg policy changes, construction delay, decrease in cash flow and receivables, over-leveraging, exchange rate fluctuation, vigorous competition and limited market liquidity, etc.