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Following a record year’s trading in Hong Kong, Christina Hui of US online brokerage Charles Schwab predicts great potential in the Asian market
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US online brokerage Charles Schwab, which opened its regional headquarters in Hong Kong in 1997, saw a surge in business last year after bolstering its invested assets and launching sophisticated trading platforms.
Charles Schwab registered double-digit growth, a 24 per cent year-on-year surge in net client assets and a 12 per cent growth in new accounts in 2002.
The regional manager for Asia at Charles Schwab Hong Kong, Christina Hui, said: "2002 has been our best year. Besides double-digit growth in client assets and trading accounts, bond assets increased 73 per cent and bond trading has risen 84 per cent. Overall, we are satisfied with the growth rate.''
The Hong Kong office, which offers online trading in the US capital markets, serves as the regional hub servicing investors in the Asia-Pacific. In addition to Hong Kong, it has customers in China, Taiwan, Singapore, Indonesia and Thailand. The firm opened its shop-front Investor Centre in Central in October 2000.
Ms Hui sees great potential in Asia, adding that the level of information technology usage among Asian investors has been rising.
She said the typical Charles Schwab customer in Hong Kong is between 30 and 50 years old, working in the finance or technology sector. This year's business strategy is to lure more active traders (that is, investors who trade 48 or more times a year). To cater to that segment, Charles Schwab Hong Kong has launched a highly sophisticated electronic trading platform, StreetSmart Pro, which offers real-time market data from Dow Jones and COMTEX News Network, and technical charting, among other value-added features. It also includes a risk-management tool.
"Charles Schwab has become a broker of choice for investors who look for a comprehensive range of fixed income products," Ms Hui said. About 50 per cent of Charles Schwab Hong Kong asset portfolio is in US equities, 20 per cent in bonds, and 30 per cent in mutual funds, cash products, options and margin-trading.
She said 30 per cent of customers were non-Hong Kong clients.
Investors who trade bonds through Charles Schwab Hong Kong accounted for 18 per cent of customers in 2002 compared with a SAR market average of 0.8% in 2001, according to Securities and Futures Commission data, Ms Hui points out. This reflects a preference among customers for high-yield bond trading, in favour of equity markets, she said.
The brokerage also offers a range of options products including a trading platform Option Street.
Related link:
Charles Schwab www.schwab.com.hk
17/03/2003
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