How to deal with Hong Kong's history third biggest drop

Financial Weekly reporter Zhang Weixiang as of the morning of August 12, Hong Kong's Hang Seng index has fallen by 2,580 points in August.　　However, the largest decline in the Hang Seng index in August was as high as 3,940 per cent, as measured by the 18,868-point low of the index, which was created on August 9. It was the third largest decline in the history of the Hang Seng Index, which was born in October 1997. The Bank of Thailand and Malaysia had lost their solvency in just a few days, as the Asian financial crisis erupted in the 4,425-point monthly decline. The runner-up was October 2008, when the index's monthly decline was 4,047 points.　　Lehman Brothers, one of the big US investment banks, failed because of investment derivatives, and the Fed's external payment window was nearly overdrawn under the extreme panic of the market, with only 5 million dollars left. Compared with 10 years ago, the volatility of Hong Kong stocks, whether within days or months, is obviously magnified.　　And, the time of the rise or fall interval is also shortened.　　What should investors do about this love-and-fear market? France-Hing Bank is the largest trading warrant issuer in Hong Kong. On the day of August 9, more than 5 cattle certificates were withdrawn from the bank.　　In fact, prior to this, investors bought a huge amount of the recovery price of 20,000 points in the cattle certificate. This purchase arrangement means that if the Hang Seng index falls below 20,000 points. Then the investor of the cow card will lose all the investment. In the case of the issuer, although the cattle certificate is withdrawn, there is no need to fulfill the obligation to do so, but it may not be profitable to eliminate the issue cost and financial expenses. This is because, in the Bull Bear Card, the lever of the cattle card is small, and bear card's lever is bigger.　　In order to balance the risks, some issuers who issued the Bulls said they had to buy a large number of shares to support the cattle trade.　　According to the information disclosed by the SEHK, the losses of the issuers of cattle certificates on August 9 were also not small, amounting to about 14 million to HK $18 million. Who can think of the past, almost no compensation for the transaction of the warrants in the market before the plunge to make the city and retail investors face losses.　　Like other warrant issuers, France is now considering setting a more reasonable trading range for warrants. More institutional investors have opted for a wait-and-see. Huang, a rich-finance director who won the Asia Pacific Fund's first prize, said he would not trade again until the Hang Seng index stood firm at 20,500 points.　　A few days ago, a reporter received a call from senior Hong Kong equities investment manager Wu Hikei, who suggested that unless investors had extraordinary trading skills, they would observe before making a decision. Andy Xie, a former Morgan Stanley Asia-Pacific economist, was deeply satisfied with his judgment a few months ago. He told investors in a small forum that Hong Kong stocks would fall below 20,000 in 7 August, while A shares are expected to fluctuate between 2,500 and 3,000 points.　　If all goes well, Hong Kong stocks are expected to return to stability in September. A Hong Kong fund manager who likes racing is now a member of the board of Directors of a family asset management agency. He said that after the crash, they were reviewing previous investments and consideringSpread risk in other areas. However, the latest disclosures by Lipper and Morningstar appear to have given investors a direction in which, in the past 3 months, in addition to investing in Japanese equity funds, the best investments in the market are gold, emerging market currencies and bonds. Among them, the top 10 bond funds yield more than 4%, significantly higher than the investment of natural resources funds. And the world's highest-yielding energy fund has returned only 1.06% in the period.