Like Tree1Likes

Most popular financial instrument in HK

Closed Thread
Page 2 of 3 FirstFirst 1 2 3 LastLast
  1. #11

    Join Date
    Dec 2002
    Location
    薄扶林
    Posts
    47,964

    Geoff - I suspect it is true with a certain demographic. The two banks we deal with in Aberdeen seem to be overwhelmed with trying to convince their older customers to move to other products.

    Additionally, they're also used by banks for collateral purposes ( put so much amount in a fixed deposit for xxx facilities )?

    Also they seem to be popular with the govt with a huge amount of its cash kept in fixed deposits.

    Not too sure of what the statistics are .. just thought that if this were a trick question, the answer could well be fixed deposits.


  2. #12

    Join Date
    Jul 2004
    Posts
    1,223

    You might be right - given the steep falls in many assets over the past few years I can see capital preservation and tiny yield might look attractive to people who have lost out betting on equities.


  3. #13

    Join Date
    Dec 2002
    Location
    薄扶林
    Posts
    47,964
    A Deposit Protection Scheme Fund (DPS Fund) with a target fund size of 0.3% of the total amount of protected deposits held with all Scheme members (translating into a fund size of approximately HK$1.5 billion) is being built up through collecting contributions from members. The target fund size will be changed to 0.25% of the total amount of protected deposits in 2011, which is estimated to be about HK$2.8 billion.
    From the latest statement .... someone do the math.

    Hong Kong Deposit Protection Board

    Currently deposits of upto 100K are protected. Will increase to 500K in 2011

  4. #14

    Join Date
    Mar 2010
    Location
    Central
    Posts
    725
    Quote Originally Posted by PDLM:
    At a mass-market level gambling on the horses is more popular than gambling on anything invented by "quants", I believe.
    Agreed,

    Horse Racing: Everyone from kids to the elderly spend their time studying the odds and programs 3 days before the race.

    Regular folks goto the Jockey club and bookies, the rich own the horses and bet in the box seats.

    Try going to any local restaurant on a Wednesday Night or Sunday afternoon or ask a local person where the closes Jockey club and they will answer accurately with no hesitation.

  5. #15

    Join Date
    Jun 2009
    Location
    Darkside
    Posts
    1,589

    Mark 6 it is then.


  6. #16

    Join Date
    Jan 2010
    Posts
    21

    Geoff, any reason why warrants are so much more popular here compared to other countries?


  7. #17

    Join Date
    Jul 2004
    Posts
    1,223
    Quote Originally Posted by bangbang:
    Geoff, any reason why warrants are so much more popular here compared to other countries?
    Easy way to speculate with a clearly defined downside (i.e. the loss of the premium) and a potentially large upside.... just like betting on the horses in that regard.

  8. #18

    Join Date
    Oct 2006
    Posts
    4,905
    Quote Originally Posted by bangbang:
    Geoff, any reason why warrants are so much more popular here compared to other countries?
    Any reasons why in most casinos around the world, you will find many asians? Gambling is a very popular pastime here and as mentioned earlier, warrants are a form of gambling on equities where you can have big returns and serious losses. But then again, few people get rich without taking chances...

  9. #19

    Join Date
    Mar 2006
    Posts
    4,043
    Quote Originally Posted by bangbang:
    Geoff, any reason why warrants are so much more popular here compared to other countries?
    I see on Wiki that in HK warrants accounted for 11 +% of trading in 09. Not sure that HK relative to other markets would be higher as the Toronto Venture and TSE companies use warrants to raise cash.
    http://canadianwarrants.com/index.html
    You find warrant info there for the Toronto SE.


    Would currency swaps, hedging instruments or even securitization run high here? Not sure of the latter here.
    Last edited by Football16; 05-08-2010 at 04:58 PM.

  10. #20

    Join Date
    Apr 2009
    Location
    Hong Kong
    Posts
    6,076
    What is the most popular financial instrument being used in HK and why?
    A trumpet, and blowing it yourself?