Market Value: $1,425,515.21
No. of Units: 931,900.9058
Dear Investors,
We dropped a little bit more this month, very minor, however I am still waiting for the Shanghai-Hong Kong Stock Connect (滬港通) to launch, they say China delay it is because a political decision due to Occupy Central (actually they are more like occupy everywhere in Hong Kong except Central), lets just call it the umbrella revolution (but again, they say it is not a revolution).
Anyway, names are not important, i don't see they have direct connection but let's just be patient, what this Shanghai-Hong Kong Stock Connect actually do is it allows Hong Kong people to buy China stock and allow Chinese to buy Hong Kong stock, it connects both "money tanks" together.
I expect some boast on HK, but i also worry the quality of Chinese corporation will downgrade HK stock market, there are still many corruption and fake accounting in China listed companies, but overall i think this can benefit both HK and Shanghai in long term.
Moreover, there is a fundamental difference between China and HK, China stock market is mainly driven (80%) by investors of normal citizen (散戶), while HK stock market is mainly driven by institution investors (機構投資者), i must apologies if you find the following statement offensive: yet most of the mass are stupid and irrational, when the market is driven by the mass, the stocks are easily manipulated. HK stock market is more stable because institution investors usually are long term investors, so they won't sell and buy quickly, i afraid when once we are connected to China, many local Chinese will get involve in HK market and make our system before more unstable and volatile, but let's see
On the other hand, US keep making new high, i expect the low interest rate will continue before the stock market being heat up to an ridiculous level (they all do in the end of the hype).
regards,
Calvin
