Caveat Emptor

Thoughts about Investing in China Market I have recently ventured for a leisure trip to Shen Zhen and Guangzhou. Considering that a significant part of my portfolio is exposed to China market (Raffles Medical, OCBC, Tencent, HKEX), a trip to China has been on my bucket list for both professional and personal reasons. The reputation of ShenZhen as the silicon valley of the east indeed lives up to its name. I am very impressed by the contrasting differences in the retail landscape in China as compared to Singapore, as well as the potential of the China Market. Myth 1 : Any company exposed to China is bound to make it rich. If you manage to sell even a dollar to everyone in China, you will instantly be a millionaire. Reality : The retail landscape of China is insanely competitive. A scuttlebutt analysis at Fraser Suites Guangzhou exhibited a stark contrast with Singapore retail landscape, whereby even popular locations can have vacant stores. With Alibaba and JinDong (JD.com),...

A tale of 2 exchanges The economics of stock exchanges vary from country to country and depend on the trading volume, investor perception about future prospects, ease and cost of transactions (Capital Gain Tax, Dividend Tax, Stamp duty, Capital Controls), developed market infrastructure and established market practices etc. Countries like Sri Lanka, Mauritius, Philippines, Bangladesh will have noticeably smaller trading volume than the major exchanges above. Not all exchanges are created equal.  My interest in stock exchanges stemmed from UnN post about the Intercontinental Exchange . That led me to do some bedside reading on Chicago Mercantile Exchange and eventually led me to HKEX and SGX, whereby I initiated a large and mid conviction position respectively. They are largely similar in their key risks and prospects although the economics of these exchanges are vastly different. As an investor in SGX and HKEX , I am impressed by the high profit margins and balance s...