When the US decides to make wholesale changes to investment markets, the rest of the world will ultimately follow. That is the way it is, the way it has been for many years with Europe, the APAC region and the rest of the world now faced with the early 2024 transition to T+1 settlement. Focusing on the APAC region, is the industry ready for the switch, and what are the implications of a slow conversion?
It is fair to say that the Hong Kong authorities have been extremely proactive since the launch of their first ETF in 1999. At the time, this was a means of selling off shares accumulated by the authorities during various stock market interventions. However, the sector has come on leaps and bounds since then, and today’s rumour of a Saudi Arabian-based ETF has caught the attention of many investors.
Exchange Traded Funds (ETF) have seen huge growth in trading volumes in recent years. They are now an integral part of the financial sector, with the Far East a particularly buoyant market for this relatively new type of investment vehicle. There are several reasons why ETFs are proving popular and why trading volumes are expected to increase significantly in the coming years.
While traditional investment trends change over time, the trials and tribulations of a day trader can change in a split second. The attractions of identifying short-term trades and banking constant profits are relatively easy to appreciate. However, there are several common mistakes made by modern-day day traders.
As the APAC region grows in size and economic influence, many investors are now reviewing their global investment strategy. While worldwide indices allocate weightings to specific areas, it is essential to try and appreciate the enormous range of asset classes and potential in different regions. Then there is the issue of risk and reward, aligning this to your investment strategy and long-term goals.
While we have looked at technical analysis as a form of identifying changing trends, there is a new movement towards AI and machine learning. There is some concern that this could eventually lead to self-fulfilling prophecies, with systems following other systems, but is this really the case?
Hong Kong and China’s role and presence within the global investment scene have grown significantly in recent years. Many people expect more of the same – a significant increase in trading volumes, IPOs and new listings – which will take Hong Kong to a different level. While much has been made of recent meetings with Middle East representatives and potential investors, do investors need to pay more attention to the role of global custodians?
Short-term traders often adopt a contrarian investment strategy to make money from mispricing. This global investment strategy can potentially work with any market, stocks, shares, or other types of investment and is based on market exuberance. However, there are many issues to consider with both global investment and contrarian investment to maximise your returns.
You can use many types of technical trading strategies to monitor share prices and, more importantly, buy and sell signals. While some of these trading strategies are highly technical, there is one known as the simple moving average chart. Is this too simple to be of any use to execution-only traders? What exactly does it show?
Here at Global Investment Strategy Hong Kong, we focus on trade execution, lower latency execution services, clearing services, and a range of post-trade services. Recognising the importance of pre-and post-trading services and how these will impact customer returns is essential. It is easy to discount these issues, assuming they come naturally, but they take time, investment and a deep-seated understanding.