CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Ma Urges Caution On Stock Investment

Ma Urges Caution On Stock Investment

by Ulrika Lomas, for LawAndTax-News.com, Brussels

30 November 2006


Writing on Tuesday, Hong Kong's Secretary for Financial Services and the Treasury, Frederick Ma suggested that only those who keep a clear head and do their homework will profit from stock investment, adding that this basic rule is often forgotten amid bullish stock market sentiment.

In an article published this week, Mr Ma revealed that the daily turnover of Hong Kong's stock market has soared to over $40 billion, a massive rise on the $6 billion recorded in 2002.

"Developing an understanding of your potential investment is like peeling an onion - you work your way down from one layer to the next," he observed.

With the recent wave of initial public offerings, the Financial Services Secretary suggested that many new stocks have accumulated a significant increase in prices within a short period of time, providing investors with an incentive to subscribe to shares by means of 'margin lending'.

He concluded that:

"However, it should be borne in mind that the profitability of an enterprise should be the prime consideration in new stock investment. If you subscribe to shares beyond your means on the belief that there will be a substantial increase in the prices of new stocks, your investment risk will undoubtedly be much higher."


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »