Investment Products

Banks fight back against online investment products

While Alibaba made its name in e-commerce, its Yu E Bao investment fund has drawn 400 billion yuan from investors. Photo: Bloomberg

The mainland's bricks-and-mortar banks are launching a counterattack against the assault on their business from Alibaba and other internet heavyweights, in an attempt to staunch the outflow of bank deposits into high-yielding online investment products.

Tuesday, 25 February, 2014, 12:57am

How banks fare on investment advice

Financial advice given at Bank of East Asia came up short of the mark, according to former Independent Financial Advisers Association chairman Glenn Turner. Photo: Bloomberg

Hongkongers buy most of their investments through banks. They count on bank staff to recommend good instruments that suit their investment needs, income and risk appetite - rather than products that just help the adviser hit his sales quota.

17 Jun 2013 - 5:17am 1 comment

Brokers fear burden of new investor rules

The Securities and Futures Commission is collecting views on proposals to increase regulatory requirements covering the sale of complex and risky investment products to 'professional' investors.

The Securities and Futures Commission last week released a consultation paper to collect views over the next three months on a range of proposals to increase regulatory requirements covering the sale of complex and risky investment products to "professional" investors, who are defined as experienced investors with portfolios valued at more than HK$8 million.

23 May 2013 - 4:39am

US ethics watchdog hails SFC plan

Noel Maye, the chief executive of the FPSB, says regulation must also prevent bad investment products from the market. Photo: Edward Wong

A plan by the Securities and Futures Commission to tighten rules on investment-linked insurance products will bring the city into line with international efforts to prevent mis-selling and promote investor protection, according to an international financial planning expert.

22 Apr 2013 - 2:50am

Time for action on insurance investment-linked products

Harold Ko Ping-chung, former SFC senior manger attends a press conference with the victims of the Lehman Minibonds incident. Photo: K.Y. Cheng

The best news heard last week is that our securities watchdog will look into the regulation of investment-linked insurance products - a good move that should have come earlier. But it is still not too late.

26 Feb 2013 - 4:51am

The black hole that is wealth management products

Xiao Gang, Bank of China president. Photo: Bloomberg

Wealth management products are becoming the object of suspicion and worry on the mainland. Investors have little idea where the money they put into these products ends up.

14 Feb 2013 - 4:53am

Relaunch of bond futures trading in sight

CSRC chairman Guo Shuqing is seen as a reformer.

Beijing is preparing to officially launch government bond futures after a successful simulated-trading experiment, in a move towards liberalising the interest-rate mechanism.

17 Jan 2013 - 4:22am

Understanding internal rate of return

IRR is a complex calculation, but investors should try and understand what it means for them. Photo: Corbis

Internal rate of return, or IRR, is one of those concepts bank staff wheel out when they are selling investments, particularly savings and pension plans involving a series of contributions.

The concept has its use. This problem is that outside of professional financial circles very few people understand what IRR means.

7 Jan 2013 - 4:31am

What will the banks sell in 2013

Which way forward?

The new year has arrived and times are changing. There is less gloom about the euro zone, the United States steered clear of its fiscal cliff and the mainland economy seems to be spluttering back into shape. This has implications for investors.

7 Jan 2013 - 4:31am

The pitfalls of investing in ILAS

Insurance commissioner Annie Choi. Photo: Warton Li

In 2010, Li (who asked that her full name not be revealed) started a new job with a higher salary. Her wealth planner, who worked for a global bank, advised Li to invest in a pension plan sold by a major insurance firm.

She agreed to the idea and committed to pay US$4,200 a month into a five-year pension investment.

17 Dec 2012 - 5:31am

Investment: volatility gains

US economist Benjamin Graham.

As the global economy resets, the prospects are for lower returns and increased volatility. The US stock market took 25 years to regain its highs after 1929. Japanese stocks (down 75 per cent from their peak) and property markets (down between 50 per cent and 70 per cent) have still not recovered 1989 levels.

26 Nov 2012 - 2:17am

Odds not in favour of investors in 'forward accumulator' court cases

Why are forward accumulators in the news?

14 Nov 2012 - 5:06am

Structural investment products now hard to find in HK

Before writing a story on structured products, Money Post went on a shopping tour of the banks to see what was out there. We assumed they would be keen to sell the high-profit product.

20 Aug 2012 - 4:16am

Lehman Brothers investors take action

A group of Lehman Brothers investors will start making reports to police from today of being allegedly duped by banks more than two years ago into buying investment products which brought them severe financial losses. A spokesman for the Alliance of Lehman Brothers Victims, said it would take about a month for the 400 investors to report to the police.

22 Nov 2010 - 12:00am

Generation Y invest at younger age, see equities as the best bet

'Generation Y' on average start investing earlier than older generations but an overwhelming majority are sceptical towards their ability to achieve their financial goals, according to a survey by HSBC Holdings.

8 Jun 2010 - 12:00am