- Title: MARKETS-GLOBAL/CHINA-BROKER Hong Kong broker weathers market turmoil
- Date: 27th August 2015
- Summary: COMPUTER SCREEN
- Embargoed: 11th September 2015 13:00
- Keywords:
- Location: China
- Country: China
- Topics: General
- Reuters ID: LVAE6VAF9VLQJS7IX0DTT40XRJDM
- Aspect Ratio: 16:9
- Story Text: China stocks rose on Thursday (August 27) as a strong rally on Wall Street helped calm shaky global markets, prompting Chinese and foreign investors to hunt for bargains after a 20 percent plunge over the past week.
But traders said the market remained vulnerable to sudden selloffs, as investors who bought shares using margin financing continue to deleverage.
Hong Kong based stock broker, Francis Lun, is CEO of GEO Securities and has a bi-weekly, financial online programme for the local Metro Newspaper.
During the show, which he co-hosts with GEO employee, Charles Mok, he covers the Hong Kong market, blue chip stocks, the China market and then takes calls from viewers, many of them small-time local investors.
"This time I think investors are interested in buying again because the market's rebounding. And investors want to know whether this is a good time to buy. And I give them the confidence that you can just go ahead a buy. Everything will rise," he said in a taxi on the way to the studio.
In the Metro studio's green room Lun, who has been in the business for over 20 years, said sometimes he felt like a shrink.
"Yeah the investors who lost a lot of money this time around, they need a lot of psychological help. They need somebody to smooth them, to soothe their, them over their losses. You have to give them a little hope, even though in the darkest of hours, there is still a light at the end of the tunnel," he said.
Sentiment was aided by comments from New York Fed President William Dudley on Wednesday (August 26) who said the prospect of a September rate hike "seems less compelling" than it was only weeks ago.
The Hang Seng closed up 3.6 percent on Thursday after weeks of some of its worst performances this year.
"For Hong Kong investors we are used to these wild swings. The boom market and bear market every five years. So nobody will bet their life savings on the stock market. So I think for Hong Kong the damage is controlled. So nobody lose their lives on it and I don't think anybody needs to jump," Lun said before running off to a business luncheon.
However, Lun said markets will be volatile for some time to come and many investors are waiting to see if Beijing can pull the world's second-biggest economy out of its slowdown. - Copyright Holder: REUTERS
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