National Council for Social Security Fund (NSSF)

The NSSF has opened an account with the CCASS to hold their allocation of H shares in the future. The NSSF receives 10% of the funds raised by floating state owned shares. In the past, this had been paid out in cash. By starting now, the NSSF is entitled to receive shares. The first company to fall under this is Hunan Non Ferrous Metals (#2626) which will be listed on Friday 31 March 2006.

This is a good thing for the HKG stock market because we have always lacked a big local long term investor. Now with the MPF and the NSSF, we should start to see steadier markets. Also, pensioners, current and future, will be able to benefit from dividends and capital gains on the HKG market.

The NSSF bought RMB 10 billion of Bank of Communications in July 2004 at $1.80. This is now trading AT $4.65 and the stake is now worth $25.8 billion. The NSSF has RMB 191.7 billion under management mostly in cash earning 3% interest. Some of it will find its way into the HKG market.

HK Services Mission to Dubai

I represented the HK Stockbrokers Association on the Mission to Dubai organised by the HK Trade Development Council. The Mission was led by Mr. Frederick Ma Si-hang Secretary for Financial services and the Treasury.

We left HKG on Saturday 25 March 2006 in the afternoon and arrived at Dubai (via Bahrain) after mid night. After checking in, we finally got to bed around 3am Sunday.

Sunday is a working day in Arabic countries and so we had a seminar on doing business in HKG in the morning. In the afternoon, we met with the Dubai Investment Group which owns most of the major projects in Dubai including the world famous hotel. Cocktails was hosted by the Chinese Consul General at the Shangri-La Hotel. In between we were shown some of the projects. Real Estate is cheap by HK standards.

On Monday morning, we met with the Chamber of Commerce, the Municipality Government and the Minister of Finance.

Mr. Paul Chow and I then left the group and met with the Dubai Financial Market (DFM) which is the domestic exchange. We then rejoined the group for a visit to the Dubai Financial Services Authority (DFSA) which is equivalent to our SFC. Paul and I then stayed behind while the group went off to Jeddah for the second leg of the Mission.

We visited the Dubai International Exchange (DIFX) which intends to be the international exchange for the middle east. The DIFX is situated in the Dubai International Center (DIFC) which is almost an autonomous part of Dubai with its own legal system (for commercial, properties, and securities) and courts. Settlement is in USD in contrast with the DFM. Apparently, they have a "remote membership" category and I am exploring this to see if our members can trade Dubai stocks.

Philippine Stock Exchange Chairman's Cup

On 4 March 2006, Edward Kwan and I were invited by the PSE to play in their Annual Chairman's Cup. It was held on the Midlands Course of Tagaytay Golf Course which, by the way, is bulit on the edge of a volcano.

We did not win any prizes (Filipinos play golf almost everyday) but we made a lot of friends. Edward even managed an "eagle" on a par 5 hole.

We were on the 1st tee with Francis Lim the CEO of PSE and Omar Cruz treasury Secretary of the Philippines.

#939 China Construction Bank

After touching a high of $3.875, CCB has settled into a very narrow trading range of $3.450 thru $3.500. Waiting for a breakthru here. Daily turnover is high.

HK Stockbrokers Association Golf Day

Our Golf tournament this year was held on 12 March 2006 at the Mission Hills on the very challenging Vijay Singh Course. The course was in great condition and the staff at Mission Hills were very attentive. Thanks to Mr Tenniel Chu and his staff for the arrangements.

A total of 49 golfers took part in the tournament including our special guests Mr Frederick Ma Si-hang Secretary for the Financial Sercives and the Treasury, Mr Martin Wheatley Chairman of the Securities and Futures Commission, Mr Peter Au-Yang Executive Director of Securities and Futures Commission, Mr Fong Hup Director of the Hong Kong Exchanges and Clearing Limited, and Mr Gary Cheung CEO of the Hong Kong Securities Institute.

The HKSBA Cup (decided on the New New Peoria Handicap Method) was won by our Vice-Chairman Mr Edward Kwan, while the Best Gross Winner was won by Mr. Stephen Wong. The ladies winner was none other than Ms Yao Sze Ling who has won this so many times in the past. The individual winners were:

The Second New New Peoria - Mr. Alec Tsui
The Third New New Peoria - Mr. Gary Cheung

The Second Best Gross - Mr. Gilbert Leung
The Third Best Gross - Mr. Andrew Tsui

The Nearest to the Pin - Mr. Edward Kwan
The Longest Drive - Mr. Chris Li

The Second Best Lady - Ms. Rosanna Lee
The Third Best Lady - Ms. Alice Chan
The Fourth Best Lady - Ms. Kitty Lee

One of our members, Mr Kent Tong arranged for each participant to receive a copy of “Pearl River Delta Golf Course Guide”. Thanks Kent.

Finally, we must thank Mr Jimmy Fong and Mr Wilfred Wong for making all the arrangements. Without their help, we would not have been able to have such a great outing.