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"Do Not Worry! Do Not Panic!" Warns Hong Kong Exchange CEO Ahead Of Today's Market Open

Tyler Durden's picture




 

As reported previously, the star attraction in the capital "markets" over the past two days has undoubtedly been the Hong Kong stock market, whose Hang Seng index surged as much as 10% over the past two days as a result of Chinese investors swarming into the "untapped" market and blowing yet another asset bubble.

 

So, as everyone settles down in anticipation of another session of parabolic Hong Kong euphoria driven by desperate housewife traders, or a manic plunge straight down, none other than the CEO of the Hong Kong Exchange, Charles Li, found some time to pen a blog post to give "a little advice to investors", providing vivid aphorisms "Investment is like swimming: if you do not enter the water, you will never learn to swim" and to caution speculators that the opportunity is "not to quickly make a  fortune, but ... to provide long-term wealth preservation and appreciation" and that there is also such a thing as risk as everyone scrambles to chase the latest bubble breakout. His blog post's punchline: "Do not worry!  Do not panic!" We doubt anyone will panic, at least not until the selling begins.

His entire post, google translated from Chinese, is below.

A little advice to investors

This is a few days after Easter, the Hong Kong stock market sentiment particularly active, the Hang Seng Index rose continuously, the total market capitalization, trading volume and turnover of Shanghai and Hong Kong through both record highs. When the market cheered the piece, I was asked the most questions investors are:

1. Hong Kong stocks to buy now time?
2. The Hong Kong and Shanghai through full amount can not buy into the old how to do?
3. Will the Hong Kong stock market trading volume magnified more volatility?

I do not have a crystal ball can predict the future direction of the market, but as one of many bridges were Hong Kong and Shanghai through the bridge, I want to give everyone a little investment advice.

Do not worry!

Shanghai and Hong Kong through the opening of the bridge is a long-term, it is for the next ten or twenty years built, there is no "after this village do not have this shop" issue. You can also be based on their actual situation and needs of arrangements ready before starting your journey from leisurely to invest. Do not have to hurry, not to join in the fun. You can always find valuable stock, but anxious often inviting risk. You know, as in the holiday get together, like travel, get together and can easily lead to congestion or bridge stampede, but also very personal experiences influence.

Do not panic!

Shanghai and Hong Kong through the north and south have a total degree of two-way daily limit, its main purpose is to ensure the smooth operation of the early start. Hong Kong stocks through these two days in advance the amount of daily afternoon run, so many investors due to inability to approach and confusion, there are many voices called for an early expansion.

At this point, I would ask my friends do not panic, be patient, the regulatory authorities have been closely watching the development of the market, it will at the appropriate time to consider expansion. The reason I have confidence in this regard, based on the following two points:

First, although the Shanghai and Hong Kong through popular these days, but the total amount of funds through the Shanghai and Hong Kong through and out of the mainland is still very small. So far only the total degree of Hong Kong stocks through the use of 47.9 billion yuan (not including Hong Kong shares through trading on April 9 in), or 19%. Shanghai shares of the total through the use of only 1,157 million yuan, or about 39%. Mainland A-share market since late last year, the average daily turnover has remained at more than one trillion. Relatively speaking, the size of funds pass through Hong Kong and Shanghai and out of it is very limited.

Second, Hong Kong and Shanghai through the clearing and settlement throughout the closure, regulators can fully monitor risks. All transactions are within the exchanges, clearing the company's systems, have a clear record. Under such a system arrangement, funds are not in great disorderly capital A shares or Hong Kong stocks traded in the stock sold and then backtrack along the main market.

So closed and transparent system designed to protect the next Hong Kong and Shanghai can be closely monitored through both regulatory agencies and prudent risk control of the premise of carrying a huge cross-border transactions.

Countless opportunities, risks often!

Shanghai and Hong Kong through open interoperability between the Mainland and Hong Kong market, but also to respect the value of the investment philosophy of international institutional investors and retail investors dominated the mainland population began "historic crossroads." This historic intersection will emit a lot of reminders "chemical effect", and create a new era of China's capital market development.

In this new era, endless opportunities, but often at risk. Hong Kong investors, new investors in the mainland market has brought unprecedented vigor and trading opportunities. At the same time, differences between the two sides in the investment ideas and risk awareness for Hong Kong investors (particularly retail), bringing new challenges and risks. How to keep the excitement of the market conditions calm and cautious, every investor must consider.

For many mainland retail investors, the Hong Kong and Shanghai through the first step of their investments overseas, naturally requires caution. Investment is like swimming as the water if you do not, you will never learn to swim, but the water is often the first time beginners are bound to choke a few saliva. Therefore, investors must do their homework, careful decision-making, should follow suit.

As market operators and regulators, we know that the rising volume means more responsibility, we will continue efforts to ensure a stable and reliable system, we will always monitor the market closely and take appropriate risks when necessary management measures to maintain the orderly functioning of markets.

Shanghai and Hong Kong through is designed to provide an opportunity for everyone is not made quick fortune, but to help the early realization of China's national wealth diversified international configuration, we provide long-term wealth preservation and appreciation of channels.

I wish every investor mindful of the risks of investment success!

 

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Thu, 04/09/2015 - 18:15 | 5976662 Save_America1st
Save_America1st's picture

He was only talking to the algo-bots

 

oh...aaaaaaand....first!

Thu, 04/09/2015 - 19:02 | 5976748 Ham-bone
Ham-bone's picture

Well, the Hang Seng (HK) is "only" up 22% over the past two years...

Compared to all the below, it is way "undervalued"...time to play hot money catch-up.

Returns over the past 2yrs...

Nazdaq up 51%

S&P 500 up 32%

DAX up 55%

FTSE MIB 48%

IBEX 43%

Nikkei 47%

Shanghai 78%

Last 1 year... (HK only up 16%)

Nazdaq up 23%

S&P 500 up 14%

DAX up 29%

FTSE MIB 11%

IBEX 12%

Nikkei 40%

Shanghai 88%

Any reason we aren't mentioning the parabolic rises in DAX, CAC, IBEX all 20 to 30% over the past 3 months???

Thu, 04/09/2015 - 19:04 | 5976800 CapnJackDaniel
CapnJackDaniel's picture

"Countless opportunities, risks often!" This is going on my business card.

Thu, 04/09/2015 - 19:45 | 5976947 Four chan
Four chan's picture

a foo and his money.

Thu, 04/09/2015 - 19:56 | 5976978 CapnJackDaniel
CapnJackDaniel's picture

Subtext: All ya'll officially warned. 

Thu, 04/09/2015 - 22:58 | 5977429 Perimetr
Perimetr's picture
"Woo Not Sorry! Poo Not Manic!" Warns Dong Kong Exchange CEO
Thu, 04/09/2015 - 21:55 | 5977292 Wild Theories
Wild Theories's picture

ahh, where would we be without google translate.

Fri, 04/10/2015 - 05:38 | 5977783 HolyfieldsOtherEar
HolyfieldsOtherEar's picture

It's to buy now time baby!

Thu, 04/09/2015 - 20:39 | 5977094 ebworthen
ebworthen's picture

He forgot "If you don't get in the water you can't be drowned."

Not to mention there are sharks in the swimming pool.

"It's different this time"...by about six or seven years.

Thu, 04/09/2015 - 22:57 | 5977424 blowing winter
blowing winter's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com

Thu, 04/09/2015 - 18:14 | 5976664 Gambit
Gambit's picture

He who panics first, panics the best! Forward young grasshoppers!

Thu, 04/09/2015 - 18:18 | 5976676 Joe Sichs Pach
Joe Sichs Pach's picture

Dive in, the waters fine!
Buy,! Buy! Buy!

Thu, 04/09/2015 - 18:20 | 5976679 Chuck Knoblauch
Chuck Knoblauch's picture

I guess I picked the wrong week to quit sniffing glue?

Do the Chinese like gladitor movies?

Thu, 04/09/2015 - 18:30 | 5976710 Uber Vandal
Uber Vandal's picture

Does Bruce Lee "Game of Death" count?

Thu, 04/09/2015 - 18:24 | 5976693 kchrisc
kchrisc's picture

Translation: "Don't panic until we have sold our shares."

The banksters need to repay us.

 

I think I saw a putty tat...

Fri, 04/10/2015 - 05:44 | 5977786 HolyfieldsOtherEar
HolyfieldsOtherEar's picture

Sincerely,

 

No Ting Wong

Thu, 04/09/2015 - 18:24 | 5976694 scuttlebutt
scuttlebutt's picture

Are these the same cautious Chinese house wives that were buying gold?

Thu, 04/09/2015 - 19:44 | 5976943 Augustus
Augustus's picture

Probably the same people, without any education. who were touted as knowledgeable and wise gold buyers at $1,800 gold.

Likely to get another nice bit of experience.  The glitter will be the tear in the eye.

Thu, 04/09/2015 - 18:42 | 5976695 Seek_Truth
Seek_Truth's picture
"Do Not Wolly! Do Not Panic!"

This is how Asian culture "prepares for", "discusses" and "solves" every crisis.

 

Thu, 04/09/2015 - 18:25 | 5976696 underman
underman's picture

100,000 next stop.  All aboard!

Thu, 04/09/2015 - 18:27 | 5976704 pashley1411
pashley1411's picture

I'm hearing, in the background, a high-pitched whistle.

Like, at Gallipoli.

Thu, 04/09/2015 - 18:32 | 5976716 Thisson
Thisson's picture

"I recommend you panic" - Hugh Hendry

https://youtu.be/3oZtPK6hqLU 

 

Thu, 04/09/2015 - 18:34 | 5976723 holdbuysell
holdbuysell's picture

In other words:

Keep Calm
And
Let Us Steal All Your Money

Thu, 04/09/2015 - 18:42 | 5976745 Joebloinvestor
Joebloinvestor's picture

They can always speculate in BIT-COIN.

 

HAHAHA

 

Yeah that's the ticket.

 

http://www.theregister.co.uk/2013/12/04/bitcoin_scammers_gbl_caught_china/

Thu, 04/09/2015 - 18:43 | 5976749 davidalan1
davidalan1's picture

Graphs, we dont need no stinking graphs

Thu, 04/09/2015 - 18:49 | 5976767 847328_3527
847328_3527's picture

"Don't panic!" = "Run for the exits, fast!"

Thu, 04/09/2015 - 19:04 | 5976811 PhatChow
PhatChow's picture

Time to run for the exits guys.

Profit taking time today.

Thu, 04/09/2015 - 19:14 | 5976841 Mentaliusanything
Mentaliusanything's picture

So to summarize that Gibberish....

Round eye disease has no cure, only curse

To be rich is glorious 

it Ok we have demand economy and can fix disease if you die

signed

Ho lee Fock,

Thu, 04/09/2015 - 19:19 | 5976850 GRDguy
GRDguy's picture

"Investment is like swimming: if you do not enter the water, you will never learn to swim" Ignore the sharks, they're just there to help you.

Thu, 04/09/2015 - 19:23 | 5976861 the_narrator
the_narrator's picture

Methinks that "housewives" is B.S explanation.  Something strange is afoot at the Circle K.  Wildass unfounded speculation: d*p*g imminent perhaps?

Thu, 04/09/2015 - 19:25 | 5976867 dufferin
dufferin's picture

Shin this Pit!!!!

Thu, 04/09/2015 - 20:32 | 5977073 StupidEarthlings
StupidEarthlings's picture

'No panic-until the selling begins' - and then the markets 'break and declare self help' (enter auto ppt) and then the selling is gone.  And it's back to the green.

 

Have yall learned nothing over the past several years.

That said, somebody announcing 'dont panic' is just for the common folk.

 

Dont be a common folk tylers.aint gonna be no 'crash'/ mass sellof (that we can see anyway.)

Thu, 04/09/2015 - 20:36 | 5977082 Omega_Man
Omega_Man's picture

wow just wait till they buy gold next!

Thu, 04/09/2015 - 21:26 | 5977178 ThroxxOfVron
ThroxxOfVron's picture

I do hereby officially dub thee: Charlie Top Call

Thu, 04/09/2015 - 21:39 | 5977247 FieldingMellish
FieldingMellish's picture

No one is worried yet. Up over 1% this evening.

Fri, 04/10/2015 - 01:12 | 5977635 Automatic Choke
Automatic Choke's picture

remain calm, all is well

https://www.youtube.com/watch?v=2jqQsDklQEM

 

....and of course this one:

https://www.youtube.com/watch?v=zXpFznXb_vI

 

Fri, 04/10/2015 - 13:51 | 5979527 SweetDoug
SweetDoug's picture

'

'

'

Boy! If that wasn't a…

"Run for the exits!" sign, I don't know what is!

 

•?•
V-V

Fri, 04/10/2015 - 20:58 | 5980997 mindundermatter
mindundermatter's picture

This has got to be one of the most hilarious things I have ever read. LMAO.

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