Financial Markets

Irrational financial markets disprove wisdom of crowds

Irrational financial markets disprove wisdom of crowds

Anyone who still believes in the wisdom of crowds should take a look at what has been going on in the financial markets. A market, after all, is made up of a crowd of investors, and its price fluctuations represent swings in the aggregate sentiment of that crowd.

Friday, 14 June, 2013, 3:49am 1 comment

The impact of politics on stock prices

Photo: Reuters

Will the upcoming 18th National Congress of the Communist Party of China affect Chinese stock market investors? Don’t hold your breath.

7 Nov 2012 - 8:44pm

Hyenas play a vital role in financial markets, too

Nature's way

There are many animals that people find repulsive which actually play a vital role in sustaining their ecosystems.

Take hyenas: reviled for feeding on carrion that even vultures leave behind, these grotesque creatures (the female spotted hyena even sports an organ known as a pseudo-penis in place of more conventional genitals) support many far more picturesque species.

18 Sep 2012 - 3:45am

China markets poised for recovery if US initiates third liquidity injection

Mainland markets are bottoming out and poised to be awash with fresh capital if a third round of quantitative easing by the US Federal Reserve begins in the fourth quarter, HSBC said.

6 Sep 2012 - 2:54am

New world order: biological science links patterns of economic behaviour

The summer heatwave in the US corn belt is going to hit grain production and has already raised food prices. So far, such price increases have not yet translated to global inflation, thanks to better food crop production in other parts of the world.

21 Jul 2012 - 12:00am

Banks nudge down yuan interest rates

Hong Kong banks began lowering yuan interest rates yesterday, after liquidity rose on the back of new measures introduced by the Hong Kong Monetary Authority (HKMA), the de facto central bank.

The HKMA launched a yuan liquidity facility yesterday to offer one-week yuan loans to local banks in exchange for collateral, such as government bonds.

16 Jun 2012 - 12:00am

How a bank's hedge became a US$2b loss, and why it can happen again

While everyone in the East has been mesmerised by the Bo Xilai mystery, another enigma has been unravelling out West, involving a London whale. JPMorgan Chase this month announced trading losses of US$2 billion and the resignation of the head of its chief investment office.

26 May 2012 - 12:00am

Taking orders on mobiles to be banned

Brokers and bank staff will be banned from using their mobile phones to take client orders from December 1 as part of a new code of conduct imposed by the securities watchdog to enhance investor protection.

They will instead have to use landline phones so their calls can be recorded.

22 May 2012 - 12:00am

'No conflict' with London exchange

While Singapore's attempt at the first exchange-backed dark pool came to naught, the London Stock Exchange has proved traditional bourses and dark pools can indeed work together.

21 May 2012 - 12:00am

Filling a niche away from the public glare

Traditional exchange operators complain dark pools lack transparency but it is precisely this ability to keep trades away from the glare of the public eye that makes them so popular with many institutional investors.

21 May 2012 - 12:00am

CSRC pushes for bank loans to brokerages

The China Securities Regulatory Commission (CSRC) has proposed allowing brokerages to raise loans from commercial banks - a move aimed at helping them expand their services to tap the rising affluence of mainlanders.

14 May 2012 - 12:00am

Gloom for manoeuvre

The good news for investors is that the mainland registered its slowest economic expansion for three years with first quarter gross domestic product growth coming in at 8.1 per cent. Indeed the World Bank forecasts that growth for the whole year will be 'only' 8.2 per cent, the lowest figure in a decade.

23 Apr 2012 - 12:00am

How to handle accumulators

Despite their recent notoriety among local investors, accumulators, a form of structured product, are still popular and useful instruments, especially in a period of market volatility. By learning how to use them and understand the alternatives, investors can make them a useful tool for improving their portfolio returns.

22 Apr 2012 - 12:00am

Logic goes out the window

Human beings are affected by a myriad of social, psychological and emotional factors which often make them behave irrationally and illogically.

Behavioural finance tries to explain why and how investors make suboptimal decisions, which create anomalies, such as during stock market bubbles and crashes.

22 Apr 2012 - 12:00am

Small investors eye bargains in SHKP

Just as many institutional investors dumped their shares in Sun Hung Kai Properties, some retail investors thought it an opportunity to make some quick money from bargain hunting in the stock. But analysts warn it may be too early to jump in.

4 Apr 2012 - 12:00am