In recent years, with the combination of a series of factors such as technological progress, financial deepening and changes in the customer base, China's Internet finance has seen rapid development. It is promoting the development of inclusive finance, improving the quality and efficiency of financial services and diversifying investment and financing Demand and other aspects have played a positive role, showing a great market space and development potential. Internet finance, while injecting vitality into the development of the financial industry, has also brought new challenges to our financial management. The rapid development of Internet finance has exposed some problems and potential risks. Why China's Internet finance can grow rapidly and lead the world?
In comparison with the United States, the market gap in our country is relatively large. The demand for inclusive finance is very high. One of the reasons made it different to China is that credit cards are very popular and very convenient for consumers in United State. There are many benefits for using the credit card make the payment. In fact, credit card is just an example. My explanation is: in the United States, the traditional financial services to the individual consumer and enterprises are comparatively perfect, and the market gap is relatively small. However, the gap in our country is relatively large, and the demand for inclusive finance is very high. Therefore, our internet finance has developed together. Moreover, Our supervision is more tolerant, objectively speaking, providing a relaxed environment for the development of our Internet finance. But now the environment will slowly change, regulatory policies begin to change, the market, the industry may have some uncertainty.
As I participated the 2nd Joint University Investment Game, it raises my interest and gives me a real insight into the Hong Kong stock market. I found that some of the participants would purchase exchange-traded fund which is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Although this seminar held in the several days after the competition, this seminar enhances my knowledge and explore my view in the stock market.
An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value, although deviations can occasionally occur. Most ETFs track an index, such as a stock index or bond index. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features. However, I think the development in Hong Kong is not in a good trend. ETF in Hong Kong mainly focus on the share and there are few types of the ETF in Hong Kong compare to Singapore. It is because most of the investor are supporting the share in past decade, as a result bond funds and money market funds have been left out, and investors are becoming increasingly unfamiliar with them. Smaller fund size and lower average trading volume are sufficient to prove that the non-Hong Kong / China equities ETFs are less attractive. Home bias weakens fund companies' motivation to expand their product offerings to non-Hong Kong or non-Chinese platforms and encourages fund companies to launch more Hong Kong or China equity ETFs.
In the past, financial controllers were primarily focused on financial reporting, processes, and deadlines. But in recent years, the role has gained responsibility, importance, and influence. After all, they directly inform the CFO on financial matters and this is where company decisions are made. The financial controller is expected to handle various aspects outside the traditional accounting issues, including company-wide consulting, advising, and constant awareness of legal, regulatory, and economic changes. This necessitates strong interpersonal and communication skills, strength in decision making, and the ability to manage unexpected financial issues. Fluency in English, Cantonese and Mandarin is all but required for those interested in financial controller jobs in Hong Kong.
Auditing has become a crucial ingredient for a company’s growth and long-term success. An audit manager is a high-level position and functions fairly independently in an organisation, taking a wide-lens approach to objectively evaluate operations. This requires an in-depth knowledge of the company and also the regulations and best-practices in the industry. Audit managers are typically found at larger companies where there is an auditing team to oversee. Analytical and organisational skills are mandatory for those seeing audit manager jobs, and successful managers also have excellent communication and delivery skills, as auditors are not often the bearers of easy or upbeat news. Also, there is a new trend for the fresh graduate to apply auditor as their graduate job because this position can provide a wide range of exploration.
As the Monetary Authority (HKMA) is the relevant authority under the Anti-Money Laundering and Counter-Terrorist Financing (Financial Institutions) Ordinance (“AMLO”) for supervising authorized institutions’ compliance with the legal and supervisory requirements set out in the AMLO and the Guideline on Anti-Money Laundering and Counter-Terrorist Financing (for Authorized Institutions). They require authorized institutions (such as Bank) to establish effective systems and controls to prevent and detect money laundering and terrorist financing. Recently, HKMA beginning to excute the Customer Due Dillgence towards the Non- Financial Businesses and Professions in order to detect the money laundering affairs.
I think the key to success will be close collaboration between authorities and the Fintech sector in establishing a robust and agile regulatory system that fosters vigilance for the good of the economy and the people, yet promotes innovation and growth within the fintech sector. There is a massive opportunity for Fintechs and financial institutions to take advantage of RegTech solutions that create operational efficiencies for a more effective compliance system that reduces human error and costs while enhancing customer experience and security.
As I participated the 2nd Joint University Investment Game, it raises my interest and gives me a real insight into the Hong Kong stock market. I found that most of the participant would purchase the derivative instrument which will get a huge amount of profit suddenly and it arouses my attention in the different type of derivative instrument. Although this seminar held in the several days after the competition, the knowledge I have gain is important for my life and for the next investment competition.
Callable bull/ bear contract (CBBC) and warranty are the most I interest in, CBBC is a derivative financial instrument that provides investors with a leveraged investment in underlying assets, which can be a single stock or an index. CBBC has two types of contracts, callable bull contract and callable bear contract, which are always issued in the money. By investing in a callable bull contract, investors are bullish on the prospect of the underlying asset and intend to capture its potential price appreciation. Conversely, investors buying a callable bear contract are bearish on the prospect of the underlying asset and try to make a profit in a falling market. Moreover, the difference between CBBC and warranty is that the CBBC have the mandatory call mechanism. If the strike price lower than the specific call price, the CBBC would be called and the loss of the trader would be the initial cost of purchasing the CBBCs. However, I got lots of memorable knowledge in this seminar, I still get loss in the next loss regarding the Callable bull/ bear contract because no one would buy the CBBCs at the high price, therefore you cannot sell all the CBBCs at the time of highest point and I believe that there is huge risk investing the CBBCs and warranty.