HSBC chairman tells students home a better risk than shares
It's not only seasoned investors who are being troubled by the HSBC Holdings rights issue question, but high school students as well.
The bank's Asia chairman, Vincent Cheng Hoi-chuen, was at a Living Finance Workshop for more than 200 secondary school students yesterday when, not before long, one of the students asked him if he should invest 60 per cent of his HK$100,000 education fund in the rights issue, given the low interest rate environment, or put it in other stocks.
As a loyal bank servant, Mr Cheng said he personally would definitely be taking up the rights issue, but he cautioned the student against too much equity exposure. A better risk would be to buy a home, he said.
Mr Cheng admitted to being conservative with his finances, saying his major investments had involved home buying and that he opted for guaranteed returns in his Mandatory Provident Fund scheme.
(However, he is about to pay HK$3.5 million to take up his full entitlement in the rights issue).
