29 Sep 2017 Stable market before holiday and a new word "FinTech"

Affect by the holiday, the stock market on 29 Sep is very steady with only 73B volume when it ended. Relatively strong movement appear after 3pm and HSI increase from 100 points to 150 points. The performance of the previously mentioned new stock ZnongAn(6060.HK) is still very weak and now it much closer to its IPO price $59.7. My original plan is to purchase more stocks if the stock price is over $70, which is a huge reference point for this stock, but given the weak performance, we should still observe the stock for a longer period.

At this moment I am still holding Tencent which is worth ~$150000, some 2823.HK and 7300.HK and the cash ratio is about 50%. As HSI is about 27500, which is in the middle of the range of 27000-28000, I prefer not doing anything except day trading. 

Apart from the stock market, I want to talk about FinTech. FinTech, which refers to Financial Technology, is a very popular word nowadays. The first time I heard this word is from my boss Dennis, and then the new listing stock ZhongAn Online. When I first heard this word, I completely did not understand what does this mean and because of this, I found my best friend, Google, to search the exact meaning of this term. The evolution of technology helps people to do everything in a more convenient way, including financial business. In the past, people already purchased insurance by face-to-face communication,  but now people can use their smartphone and credit card to purchase insurance online without going to insurance companies. 

Fintech is definitely a good idea to attract more international institutions and investors to have business in HK so as to further expand the financial market in Hong Kong. Take securities industry as an example, according to the ordinance from SFC, to open a securities account, we must have a witness to confirm the identity of the account opener. However, to do so, witnesses are not the only way. With the aid of technology, video conversation, or fingerprint confirmation, etc are some alternatives to help account openers to finish all the procedure at home. People no longer need to waste time to do the witness confirmation, especially for people living outside Hong Kong. 

I understand that security problem is a  big concern for regulators as we can never imagine how advanced technology could be, including fake fingerprint production, pre-recorded video conversation, etc. Regulators need to have deliberation on the consequences and which one should take the responsibility when some financial crimes happen. I believe that the regulators are still working on all the rules and details before implementing any fin-tech related policies to make big changes to the whole financial industry. Let us wait and see the presents our regulators will give us in the future