Stock maniacs are everywhere, even in Sai Kung country park
The current rally is being driven by investors from all walks of life betting on Beijing’s decision to allow public funds to invest
I was hiking in a Sai Kung country park yesterday, where there are more corals than human beings and mobile phone access is close to zero. I never expected to run into a stock market maniac, yet I did.
Sitting in the middle of a seaside town of about 10 houses was the village's only grocery store-cum-tea-house - not exactly a store but the home of an old couple who also run a business.
In summer, they rent kayaks, showers and lockers to tourists. On quieter days they prepare sea urchin fried rice and oyster pancakes for hungry hikers.
Yesterday was a quiet one. On the patio all the tables and chairs were stacked up with the red and white umbrellas lying beside them.
My husband and I were the only visitors in the store.
No one came to serve us. Inside the house, the television was blaring about the performance of individual stocks. The old lady, who usually does the cooking, had her eyes fixed on the television.
Finally, her husband came to serve us. We ordered an oyster pancake and noodles with ham. The old lady rushed into the kitchen to cook for us.
Within 10 minutes, she was back in her seat busy talking to her banker on the phone about her securities account.
It was hard to tell what bets she was making. It was all so secretive. She told my husband off when he entered the house to get some toothpicks.
Yet, it was hard not to notice how absorbed she was. The food - to put it kindly - tasted very different from previous days. The noodles looked like a towel.
Along came an expatriate in a blue T-shirt and blue shorts, holding a bottle of Tsingtao beer in his hand. He greeted the old man in pretty fluent Cantonese.
An occasional resident of the village, the man teaches surfing on the beautiful beaches in the area. Excited to see new visitors he spent 10 minutes telling us why surfing isn't a dangerous activity and how much he loves the sport.
Everything he talked about was related to surfing, until the old lady reappeared.
"I made a successful bet today," he couldn't wait to tell her.
"Good for you. Tsingtao Brewery?" she asked, pointing to the green bottle in his hand.
"No, too expensive. I don't have that much money," he said.
"That's right. It costs almost HK$60 [per share]," said the woman as if she had one of those flashing computer screens right in front of her. It closed at HK$54 yesterday.
"I bought San Miguel," said the surfer. "It also brews beer."
True, but the difference between the size of San Miguel and Tsingtao Brewery is like heaven and hell. Tsingtao is the top brewery in China. San Miguel's 2014 profit was only 1.8 per cent of its mainland peer.
"San Miguel is a big laggard, though," said the woman disapprovingly. It has traded up only 0.72 per cent since January.
"Oh yes, that's why I bet on it," the man said. "It's cheap. Buy low, sell high. Right?" San Miguel closed at HK$1.4 yesterday.
Don't write the surf coach off as a joke. The current rally is driven largely by Beijing's decision to allow public funds to invest in the Hong Kong stock market. The official signal is clear; mainland liquidity is here and the crowd followed.
Therefore, if you want to make quick money, you should perhaps learn to think like a mainland investor. Any Shanghai or Chengdu investor will tell you that lesson No1 is to forget all the talk about fundamentals.
And the surfer had a proven success from his trade.
"How much did you gain?" the old woman asked.
"About 2.4 per cent in two hours. Not bad," said the surfer with a big smile. "It's nothing compared to yours, but I will build on it."
"Congratulations! Thanks to China!" the old woman said.
"Absolutely, everyone is so happy," said the surfer toasting with his beer.
http://www.scmp.com/business/articl...arket-jump-shows-crowds-will-follow-liquidity
