HIGHLIGHTS
HKUST MBA Ranks First in Asia (26 Jan)
Local dailies reported on the FT Global MBA Ranking released on 25 January, with mostly headlined “HKUST regains Asia’s #1”. They said the HKUST MBA Program has been ranked #14 globally for three straight years and ascended to #1 in Asia. Some papers noted the average salary increase of HKUST graduates three years after graduation and cited Director of MBA Programs Mr Sean Ferguson as saying that the HKUST MBA program has delivered long-term value to graduates and that they are having a significant impact in helping Asia fulfil its economic potential. All papers also reported on the top three rankings globally, with some focusing on HKU’s significant drop from #28 to #44 this year as the university is affected by ongoing political tussles. Link to Sing Tao Daily HKET HKEJ Ming Pao Sing PaoWen Wei Po
198 New Members Inducted to HKUST BGS Chapter (26 Jan)
SCMP carried a supplement on the HKUST Chapter Beta Gamma Sigma (BGS) Induction Ceremony held on campus on 16 January, in which 198 new members including two distinguished honorees were inducted to the 2,000-strong honor society. The article highlighted the aims of the long-established BGS international network and the activities organized by the Business School that help students build a closer link with the business community.
OTHERS
About Hong Kong’s Philanthropists (31 Jan)
SCMP Post Magazine carried a feature story – “Why are Hong Kong’s philanthropists so blinkered?”. The story cited the latest “Coutts Million Dollar Donors Report” that HKUST’s Tanoto Centre for Asian Family Business and Entrepreneurship Studies helped compile. The story said while philanthropy is expanding fast in Hong Kong and China, their enormous donations have been focused on higher education, instead of for example more pressing global environmental issues. Professor Roger King, the founding director of the Tanoto Center, explained that Chinese business dynasties traditionally seek social capital that can be leveraged by future generations, and that they will favor good causes in their communities - in Hong Kong and on the mainland - where the benefits will be observed and appreciated. This explains why so many charitable foundations and the university buildings they finance retain the family name, and also suggests why environmental causes lose out. Link
Soros’ Betting Against HK Dollar (29 Jan)
Sky Post carried a commentary by Professor Francis Lui, Director of the Center for Economic Development. Professor Lui commented on the recent remarks made by billionaire investor George Soros, who sees a hard landing for China’s economy, betting on falls in the value of the Chinese yuan and HK dollar. In preparing for Soros’ attempt to attack HK dollar, Professor Lui said the HK Monetary Authority must ensure the robustness of its exchange market and reassure the market that the authority has measures in place to withstand capital outflow. Link
High-Speed Rail Project (29 Jan)
Hong Kong Economic Journal carried a commentary by Professor Francis Lui, Director of the Center for Economic Development, on the Guangzhou-HK Express Rail Project. Professor Lui discussed the over-budgeted project explaining the efficiency and far-reaching benefits of an inter-city rail project anywhere in the world. If the HK Express Rail Project is put on the shelf due to filibustering, Hongkongers would likely pay an even higher price. Link
Mainland Bond Market (Jan)
A monthly investment related magazine Grand Times (大時代) discussed the bond market in China. Assistant Professor Li Xi, Department of Accounting, was quoted as saying that there is room for the mainland bond market to expand, but it needs a more robust monitoring system. He added that, due to a lack of market efficiency, Chinese private enterprises would find it difficult to raise “cost-effective” capital via the mainland bond market.
A Win-Win Solution for Listed Companies and Investors (26 Jan)
Hong Kong Economic Journal carried a commentary (解牛集) by Adjunct Associate Professor Christine Chow, Department of Finance. She discussed the growing importance of “Environmental, Social and Governance - ESG”, which is set to be an irreversible trend. To be recognized by investors, enterprises today need to enhance their transparency and accountability and introduce a sound monitoring and reporting system. Professor Chow said Annual General Meeting (AGM) is one of the idea platforms for companies and investors to exchange and communicate. Link
KH Executive MBA Supplement (15 Jan)
SCMP and AWSJ carried a supplement on KH Executive MBA Program highlighting its stellar ranking and the global perspective offered by the Program. Dean of HKUST Business School Professor Jitendra Singh and Dean of Kellogg School Professor Sally Blount talked about what have made the Program so successful globally.
Student Startup - Plain Exchange (Jan)
Next Magazine featured an HKUST-HKU team that notched up awards at the Hackathon Competition and the Science Park Venture Capital to form a startup called “Plain Exchange”. Two of the team members Rachel and Johannes, UG students at the HKUST Business School, talked about how they got inspired to develop the peer-to-peer currency exchange platform and their future plan.
Care for the Elderly (22 Jan)
Sky Post carried a commentary by Professor Francis Lui, Director of the Center for Economic Development, discussing the retirement system in Hong Kong. He said Hongkongers should be careful of the growing financial burden of any universal retirement protection scheme, which has already affected some western countries and Japan. Link
Mainland Anti-Corruption Measures (22 Jan)
Hong Kong Economic Journal carried a commentary by Professor Francis Lui, Director of the Center for Economic Development, on corruption issues. Professor Lui discussed the anti-corruption measures led by President Xi Jinping and their impacts so far. To enhance the effectiveness of anti-corruption moves, China should for example reduce its subsidy to state-owned enterprises, increase the salary of civil servants, and take anti-corruption steps in a clearly targeted approach. Link
KH Executive MBA Places a Premium on Collaboration (19 Jan)
SCMP online, in its series of sponsored articles on the HKUST 25th Anniversary, featured the KH Executive MBA Program. Its Program Director Ms Judy Au talked about the strengths of the Program and attributed its international success to the global approach and great faculty, bringing students the best of East and West. She also explained how Kellogg-HKUST is working hard to develop the Program and maintain its international prestige. Link
UG Students Win Multiple Professional Institute Competitions (Jan)
Sing Tao in three straight weeks carried an interview story with HKUST winning teams at three different business competitions organized by professional institutions HKICPA, CFA and SCMP/IFPHK last year. The teams talked about their cases in the competitions, wining factors and the rewarding learning experience they received from these activities.
Shareholder Rights and the Cost of Equity (20 Jan)
SCMP Education Post carried a research summary by Associate Professor Chen Zhihong, Department of Accounting. His study examines why stronger shareholder rights reduce the cost of equity, focusing on the cost of equity implied in stock prices and analysts’ earnings forecasts. Link
Measures to Avoid RMB Plunge (19 Jan)
Hong Kong Economic Journal carried a commentary (解牛集) by Adjunct Professor Jerome Yen, Department of Finance. Professor Yen examined the causes of the tumbling stock market and financial crisis in China, which are mostly triggered by the volatile RMB exchange rate and the “lack of confidence” among mainland investors. Beijing should not only maintain a healthy level of foreign reserve to stabilize RMB, but also attract international financial talent to rebuild public confidence. Link
Operation Santa Claus Campaign (15 Jan)
SCMP carried a supplement on the Operation Santa Claus Campaign co-organized by the newspaper and RTHK. MBA students from five leading local business schools formed teams to raise funds and awareness for the charity drive. HKUST MBA students (team mUST) have won two honors in the competition: the Top Fund Raising Award and the Best Presentation Award. The team run 11 events in six weeks and raised a total of HK$211,000 for the campaign. Two of the team members Garrick and Billy were interviewed by Next Media Online, sharing their charity initiative and how they extended care to a wider community. Link to SCMP and Next Media
China Finance System Underlying Risks (12 Jan)
Hong Kong Economic Journal carried a commentary (解牛集) by Adjunct Professor Jerome Yen, Department of Finance. Commenting on the tumbling stock market and the suspension of “circuit breakers”, Professor Yen said mainland capital and finance market is facing a number of underlying risks, which are likely to trigger greater volatility ahead not only within the country but across the globe. If RMB exchange rate and its market continue to plummet, he predicts the A-Share market would be down to 2600, with knock-on effects on the country’s property market. Link
Volatility of Exchange and Shares in China (12 Jan)
Hong Kong Economic Journal carried a commentary by Professor Francis Lui, Director of the Center for Economic Development. Professor Lui explained the reasons of recent RMB exchange rate plunge, including the stronger US dollar, the outflow of hot money from mainland, among others. He also commented on the volatile stock market, saying that Beijing should avoid intervention of the market. To improve the stock market in the longer run, China should provide an environment where enterprises can further enhance its competitiveness and maintain high returns for investors. Link
Fintech and Crowdfunding (11 Jan)
Sing Tao Daily carried an interview with Chair Professor Tam Kar Yan, Department of ISOM, on fintech development in Hong Kong. Amid the rapidly growing fintech businesses, Professor Tam said it is time for the city to review its regulatory framework. To minimize the risk associated with crowdfunding, a “tiered system” according to investment amounts can be introduced. He also commented on the potential of other new fintech platforms including payment system, big data and P2P lending, stressing that Hong Kong needs to take steps to pair up innovative enterprises and traditional finance businesses. Hong Kong Economic Journal also carried a report on the emerging fintech market, in which Professor Tam commented on the purpose of the Steering Group on Fintech – where he is one of the members. Link
Universal Retirement Protection (11 Jan)
Hong Kong Economic Journal carried an interview with Professor Francis Lui, Director of the Center for Economic Development, on the universal retirement protection system in Hong Kong. Professor Lui denied the universal retirement protection for all elderly “regardless their wealth” and criticized its supporters for failing to consider the financial sustainability of such system. He suggested that it is relatively more feasible to provide universal protection for all senior citizens aged 80, while offer subsidy to those below 80 after wealth or income vetting. Link
Market Disagreement and Stock Returns (6 Jan)
SCMP Education Post carried a research summary by Associate Professor Yu Jialin, Department of Finance. Analysts and investors may agree to disagree on certain portfolio picks, but the nature of that disagreement and its interplay with the portfolio could have implications for returns and asset prices. Professor Yu builds on that finding to define the characteristics of disagreement that are most likely to have an impact, as well as the types of stocks that are most affected. Link
Rising Wages, Labor Regulation, and the Future of Employment in China (6 Jan)
Global Network for Advancement Management (GNAM) carried a research summary by Professor Albert Park, Department of Economics. His study looks into China’s phenomenal economic growth that has pushed up demand for labor and wages, how the benefits are being distributed and if they robust to withstand an economic slowdown. Link
Universal Retirement Protection (7 Jan)
Hong Kong Economic Journal carried a commentary by Professor Francis Lui, Director of the Center for Economic Development, on the recent heated debate over the retirement protection system in Hong Kong. Professor Lui explained some misunderstandings of the Universal Retirement Protection stressing the pressing ageing problem in Hong Kong, its sustainability and disputes over fairness, etc. He estimated that an extra HK$47.9 billion of government expenditure a year would be needed to pay for the Universal Retirement Protection System if implemented. Link
RMB Internationalization (7 Jan)
Financial Times (Chinese Portal) published an article contributed by Professor Edwin Lai, Department of Economics, on RMB internationalization. Professor Lai talked about the significance of RMB to be included in the IMF SDR currency basket, but maintained that the currency still has a long way to go before it becomes a global currency. He also discussed how China can remove its capital account controls and prevent currency crisis, citing Economics professor Barry Eichengreen of the University of California, Berkeley, on the term “original sin” to describe foreign currency debt as the source of various crises in developing economies. Link
RMB Internationalization - Open-Economy Trilemma (5 Jan)
Hong Kong Economic Journal carried a commentary (解牛集) by Professor Edwin Lai, Department of Economics. Professor Lai looked into the difficulties the RMB faces and the pace of its internationalization in coming years. Explaining the restrictions in an “Open-Economy Trilemma”, he said it is impossible to achieve a stable foreign exchange rate, free capital movement and an independent monetary policy – all at the same time. He predicted RMB in 2016 would face difficulties in its internationalization due the slower growth and reducing trading volume in China, the expectation of RMB depreciation and lower interest rate, but the currency would go up again in five to ten years with continued reforms and opening of the mainland finance market. Link
Public Policy (5 Jan)
Oriental Daily News carried a commentary by Assistant Professor of Business Education Siu Kam Wing, Department of Economics. Professor Siu discussed the public policy in Hong Kong amid the growing debate on issues like retirement and medical protection systems, competition law, etc. He called on the government to provide a well-informed platform and engage Hongkongers in reasonable discussions, taking all public interests and constraints into account. Link