A Factor Analysis of Investment Behaviour for Small Investors in the Hong Kong Stock Market

Hon (2012) found that small investors were overconfident and bought more stock during the buoyant market in the Hong Kong stock market. Small investors also exhibited herd behaviour. In this paper we extend his paper to identify and analyse the important factors that capture the behaviour of small investors in the Hong Kong stock market,especially during the financial crisis.Exploratory factor analysis is employed to analyse the data, we found that monitor investments is the second important factor and reference group is the most important factor..Keywords. Factor analysis, Small investors, Stock market, Hong Kong.JEL. E22, G02, G10

Rank Correlation Analysis of Investment Decisionfor Small Investors in the Hong Kong Derivatives Markets

Abstract. The primary objective is to investigate the factors, investing characteristics and decision making processes that affect Hong Kong’s small investors who participate in derivatives markets. The data were collected from 1,130 respondents via a questionnaire survey. Based on the results, we can derive the ascending order of importance of reference group, return performance and personal background (reference group is the least important and personal background is the most important).We used an indicator (Kendall rank correlation coefficients) to measure the different ranking of factors and are therefore attempting to give advice for financial advisers approaching target customers (small investors) in the Hong Kong derivatives markets.Keywords. Rank correlation, Investment decision, Small investors, Derivatives markets, Hong Kong.JEL. G02, G10 G11

The Preferences and Investment Behaviour of Small Investors in the Hong Kong Bank Stock Market

This paper investigates the behaviour of small investors in the Hong Kong bank stock market.The objective of this study was to researchthe factors, investing characteristics, and decision making processes. Informed by behavioural finance, we develop four hypotheses regarding the opinions and investment behaviour of small investors in the Hong Kong bank stock market. These hypotheses are then tested with the data collected from 1,054 small investors via a survey. By doing so, we hope to contribute to the study of behavioural finance in the setting of an Asian financial centre, namely Hong Kong.Keywords. Behavioral finance, Investment behavior, Small investors, Hong Kong.JEL. E22, G02, G10

Sourcing in China

Abstract. This paper will be ask the question: Is it worthwhile to source inputs, as well as finished manufactured products, in China? The objective of this study is to examine a Europe Company in the telecommunication industry that had set up a localization project headed by a global sourcing director. The telecommunication industry is a high-tech and frequently changing industry that illustrate the current localization process in China. Finally, we illustrate the current investment opportunities to foreign investors and potential chance in western development in China.Keywords. Sourcing, Localization, China.JEL. M10, M11

An Overview Online Securities Trading Service in Hong Kong

Abstract. The objective of this study is to examine the online securities trading service in Hong Kong. The upward trend in the contribution of retail online trading to total turnover value of online brokers continued, reaching 29% in 2013/14.However, international standards of anti-money laundering and counter-terrorist financing are set by the Financial Action Task Force. We expect that the client opening procedures (especially anti-money laundering) cannot satisfy both U.S. Securities and Exchange Commission and Hong Kong Securities and Futures Commission regulators. Some online brokerages will close their business in Hong Kong.Keywords. Online Securities, Anti-money laundering, Hong Kong.JEL. G20, G24

Foreign-Invested Enterprises in China:

 Abstract. The objective of this study was to illustrate the development and sustainability for foreign-invested enterprises in China.Banks would react to banking regulation of Basel III. The traditional loans are very costly in capital. Banks restrict lending and treat lending as a marketing tool. Foreign-invested enterprises will be difficult to get the traditional loans. The development of peer to peer (P2P) leading perform will be targeted for the foreign-invested enterprises’ new financing channel in China and the world. Also, brand name is the key factor for enterprise survival. It represents the commercial integrity. Foreign-invested enterprises can use the concept of creating shared value (CSV) as reference to sustain their business in China. Keywords. Foreign-InvestedEnterprises, Peer to Peer (P2P), Creating Shared Value (CSV), China. JEL. E22, M00, O10

The 11th Biennial Conference of Asian Consumer and Family Economics Association (ACFEA)

Abstract.The 11th Biennial Conference of Asian Consumer and Family Economics Association (ACFEA) was held by Shue Yan University in Hong Kong, China. In this study, the evaluation of the 11th Biennial Conference of Asian Consumer and Family Economics Association held during July 7-10, 2016 in Hong Kong will be mentioned. Keywords. Consumer/family economics, behavioral finance, financial literacy, microcredit, health, happiness, sense of well-being, and cost of living. JEL.D11, D12, D19, G02, G11.

The Relationship Between Consumption and Income

Abstract. Friedman (1957) states that permanent consumption is a function of permanent income in the long-run. Co-integration theory is first used to test whether a long-run equilibrium relation exists between the two variables. The existence of an error-correction form between two variables is necessary and sufficient for them to be cointegrated. We applied for an error-correction form to conform the linear long-run relationship between permanent income and permanent consumption under special conditions and the elasticity of permanent income in logarithms with respect to permanent consumption in logarithms is unity.Keywords. Permanent Consumption, Permanent Income, Co-Integration, Error Correction.JEL. C00, C10, C20

Causality Relationship between Money, Income, Price and Exchange Rates in a Small Open Economy: the Case of Hong Kong

Abstract. This paper investigates the direction of causation among income, price, exchange rates and money supply in Hong Kong. We use the Granger(1969, 1980) causality concept to find the existence of such a relationship. The paper presents the results of two separate bivariate analyses: on involving money and income, and the other involving money and exchange rates. A notable result to come out of the paper is that there is no causality relationship between them.Keywords. Causality, Money, Income, Price, Exchange rates.JEL. C01, C10