12
REVIEW OF THE SHARE MARKET.
GENERAL REVIVAL MARKS SECOND HALF
OF THE YEAR.
REASONS FOR RENEWED INTEREST.
THE HONG KONG DAILY PRESS, TUESDAY, DECEMBER 31, 1929.
THE PAPER TRADE. BAMBOO & RATTAN.
"WORST YEAR SINCE
1920."..
Business in paper in Hong Kong and South China is usually confined to White and Coloured M/G Cap, Newsprint, and Sup./Cal. Print also plenty of sellers. Yet anotherings. The year opened with most class of speculators made an ap pearance. These resorted to profit taking tactics, buying one day and getting out a few days later with a small profit. This they were able to do on which showed an upward endency from day to day.
The effects of the disastrous June shares" on the market, there were Settlement in 1923 on the local share-market took exactly four years to wear off. The subsequent de pression and inactivity lasted until June this year, when the market shock off its lethargy and became gradually enlivened until, at the close of the year, we find that almost all those who had taken an interest in the, doings of the local
Rinite
in former years aro
strong market
Business With Shanghai. It was about this time, that nows
disappointing results in these parti- cular grades, but particularly in White and Coloured Caps, due to many orders having been placed during the second half of 1028 with certain mills för shipment ber/January last.
HONG KONG'S STRONG POSITION.
11.
Several million dollars' worth of
Money
*
and Markets
rattan furniture, cane and bamboo HONG KONG TRADE. ware were exported from Hong Kong to various parts of the world during the year 1999.
"One of the principal dealers in these lines told a Daily Preas re- presentative that business this year has been excellent, and shows an increase of 35 per cent. over the sales of 1928, this being due to favourable exchange and the com- Novem-paratively cheap prices quoted by local manufacturers as compared with prices asked elsewhere. All the rattan and bamboo were ex- port from Hong Kong is manufac- tured locally, and quality compares
Many of these orders, however, could not be "despatched before March, owing to the very severe
very well with other makes.
I. Ganes.
winter in Northern Europe, causing many chipping ports and rivors to become ice-bound. When ship ments were eventually despatched an enormous quantity of paper ar- rived in Hong Kong at about the same time, causing heavy stocke. Added to this, Coloured Cap paperally taking up no less than 15,000 in certain sizes and weights, arriv
ngain in tauch with the market. came through to the Colony of the Conditions in gencial, consulering prosperous state of the Ewo Cotton all things, are in a highly satisfac Mills, and interest extended from tory state. The year 1920, there Hong Kong shares to Shanghai fort, will go down in the annals of Hitherto business between Hong the local Exchanges as an outstand. Kong and Shanghai had been ab ing one, in that it proved to be the solutely one-sided-Hong Kong sell- turning-point of a slump which "lasting some of its cheap shares 'to ed four years, and left much havoc buyers in Shanghai who had confid- ence in the Hong Kong market. in its train.
son for which such qualities are When it was learned that thereing too late for the particular een- was likely to be a big rise in Ewos, plenty of money was found among local investors for this Shanghai
For the first six months of the present year very little was done in the way of cash business, and prac tically nothing at all in the way of forward business. After the
stock.
month of June, however, inquiries The volume of forward business began to come in from all sides, and between Hong Kong and Shanghai gradually the volume of cash busi-also grew, and as the rise of price ness increased. Prices went up as in Ewos became rapid, there were & consequence, and forward buss not a few who took a chance and neas again made its appearance in old short. Cash buyers often the market Several factors a found their holdings had appreciat responsible for this revival, and ed several points on arrival of their
these are traced in detail in the
used, meant that weak holders were forced to drop their prives to below home cost for want of ready crah.
Following this state of affairs the lifting of the boycott by China against Japan released an enormous quantity of paper which had been stored in Hong Kong and cleewhere
Some 38,000 bales of cang' were shipped from Hong Kong this year of which total the United States absorbed 11,000 bales. Central Europe took up even more, being responsible for 13,000 bales, but Britain was the heaviest buyer of
bales.
The export of cane alone repre-
PIECE-GOODS BUSINESS
- STILL DULL.
The fortnightly report of the Hong Kong General Chamber of Commerce coutain the following references to:-
Cotton Piece Goods and Fancy
Cotton Gooda.
The following reports have been received:-
CANTON TRADE DURING 1929.
FEW PROFITS AND MANY
LOSSES!
CHARGE AGAINST POLICE SERGEANT.
VERY UNSATISFACTORY EVIDENCE."
CASE DISMISSED.
Further witnesses for the prose- cution were called, and evidence given for the defence, when the case against a Shantung police ser- geant of assault on an old woman was resumed before Mr. E. W.. Hamilton at Central Magistracy yesterday.
Mr. L. R. Andrewes (Assistant * Crown Solicitor) prosecuted and F. C. E. Rendall appeared for the defence.
trade has been published by the The following review of Canton's
Canton vernacular Press, The trade""conditions in the city are generally disappointing as a result of the continual warfare in the
At the previous bearing, a charge Province.
of manslaughter brought against Piece Goods-The market for the defendant was amended to one foreign piece goods is normaal, The market has been quiet during There has been a growing demand of causing grievous bodily harm to the last two weeks and clearances for Japanese goods as their prices the 'old woman, who died in hos. have been on a very small scale.art cheap and owing to foreign pital. Medical evidence was given Enquiries for White Shirtings have did not sell well this year. Chinese Competition, Chinese piece goods not resulted in now business as
to the effect that the cause of death denlors lack confidence. with the weaving factories are making no was paeumonia.
Because of the higher continued décline Manchester prices in
Exchange Profits." remain about prices of cotton yards and of fo- the came with manufacturers eager reign dyes due to the high exchange for work and if firm offers could be rate for Hong Kong money, prices obtained, they would probably ne- had to be raised and as a result, eept lower ices. Japanese goods, demand has fallen away badly such as Printed Cotton Jeans and Silks-Merchants dealing in silk Art Silk and Cotton Brocades ap- piece goods are also doing badly pear to be moving in farger et fondness for foreign woollens and
The Chinese have developed ties but when the present stocks velvet, and Chinese silk has not are exhausted, replacing coats are likely to be considerably higher and been in demand. · The United States are practical-dealers are not making forward ly the only buyers of bamboo-ware, purchases. and no less than 11,000 bales valued nt $400,000 (free of freight) was shipped during 100 to America, Many varieties of fancy ware and baskets are made from bamboo and these find a ready market in the U.S.A. It is reported that gone to the length of establishing their own factories in Flong Kong, and though this is possibly not altogether true, it is certain that the output of some of the smaller firms has been fully booked for a long time ahead.
sents about a
million
dollars'
worth of business, and there in every prospect of there being even a bigger turnover next year.
Bamboo-wara,
There is so sign. whatever of any netivity in the market and new businces is impossible under exist ing conditions. The further decline in Sterling Exchange since last reporting hero widens the already wide disparity existing between costs as compared with current local silver selling rates.
Latest Cotton quotations to hand are those of 27th instant Mid. Am. Spot 9,61d. Eg. Sakel. 14:20d.
|
The deceased woman's daughter, and a shoemaker living at the same house in Tung Street, gave evidence of being roused from sleep At 1 a.m. fendant strike the old woman a on December 9. and seeing the de- blow with the fist, and kick her in the stomach,
The witnesses then. proceeded no give a confused ne count of an earlier, incident in the street between the deceased woman's
Tea Tea merchants are doing very badly. Owing to the competi- tion of Japan and Ceylon tea, Chinese ten merchants have almost son and a young woman, but the The Magistrate ordered them to stand lost their market abroad. amount of ten exported to meet the down.
Evidence for Defence. quirements of overseas Chinese has fallen off considerably.
Match Making-Fifteen match had no case
Mr. Rendall submitted that he' factories in Dunton have closed
'to answer, but he would call evidence for the defence scarcely able to carry on. The im
character. 'portation of large quantities of Swedish matches coupled with the heavy taxes imposed by the Canton authorities has practically killed business.
review of the activities of the share scrip and promptly sold again, so in south China, for several months several American firms have even silver parity of present replacing down while those still operating are
market given below.
A Wet Blanket..
The announcement at the close of 1028 of the Government's intentio to introduce a new Stamp Ordin- ance acted as a wet blanket on local sharebrokers, who had been trying during the past three years to pre- vent the market from going to pieces. As a result of the subse- quent withdrawal of this Ordinance for the time being at least) their efforts at restoring the market to a state of noriraley were renewed anil, happily for the brakers several months later they found the first fruits of their endeavours making
an appearance.
1.
that since the first news of the
prosperous state of the Mills reach ed Hong Kong, a continual busi ness in cash and forward shares was transacted between the two ports, which led to what might be described as a revival of business relationship between Hong Kong and Shanghai brokers.
Another Incentive.
and prices in consequence further weakened.
Selling Below Cost. Many importers were forced to
.
year.
Rattan,
Woollens.
Gold Ornaments. -
- Goldsmiths complain that the war has affected their business considerably. The unusually high price of gold is an other contributory cause of the decline of this business.
in order to clear the defendant's
The defendant said that he re-
ceived a complaint from a young
women that she had been molested by a man (the deceased woman's... son), who had run into a lane. Witness followed and arrested the man, who was pointed out by the complainant. The man offered re
sistance, but with the assistance of an Indian constable, he taken to the station. An old wo- man later came in and accused wit-
ness of assaulting her.
WAS
"Chinese Native Banking.-Busi- A few small repeat-order lines ness of Chinese native banks was for February shipment are again not good this year, but a little reported but apart from these better than last. Money changers isolated transactions, no new busi are doing fairly well. ness in Woollens have been done. Clearance of woollens have been very limited since the recent fight market has been very quiet.
No interest is being taken by the
Rice. Business done by whole- dealers in fresh purchases at pre- sent and the further drop in ex-
salers is not bad and better than change maken orders for July/Aug-last year. Some of them make pro- fits. Retail merchants were doing fairly well during the first half of the year, but business during the latter months was disappointing..
Fire Wood. The fire-wood supply comes from the East, West and
Dase for Prosecution Fails. North River districts. On account of the wars, communication between that he did not wish to proceed At this stage Mr. Andrewes Baiti Canton and the river districts was with the depositions of the deceas aften interrupted and only limited ed woman, as he did not think quantities of firewood were im- there would be anything to add to the evidente already given by his
- Furniture. Rattan, and cane furniture apparshipment appear very remote. ently is much admired the world over, ne record shipments, have been made in 1099 to America,
Statistics
sell a large portion of their hold. inge nt below sutual cost. White Clap and Newsprint suffered most, In the rattan businesa America and in fact for several months these again appears to be almost the Another incentive to investment grades could he had locally at any sole buyer, giving the Colony, busi- where up to 15 per cent. below ness estimated at about $300,000, in local shares was news of the
M/ Sulphite represented by 11,000 bales. There possible amalgamation of the Hong imported figures. Kong Electric Company and the papers generally were also offered has been little fluctuation in price, China Light and Power Company. freely at about 10 to 15 per cent. and in view of the steady demanding on the West River and the local Great interest was shown in this below imported prices, but event is fully anticipated that business report by the community, and while the buyers were not tempted to in this line for 1030 will be as there were a number who believed huy until the latter part of the strong as it has been in the present that such a deal was coming off, year. when. spot" cargo took a After three years the outstanding there were an equally large number slight upward turn, due to the fall This rise. accounts and the general state of who felt that such a development in rate of exchange.
not altogether in chaos caused by the upheaval in would not take place. Hence the however, was June, 1925, had been gradually demand which set in for China sympathy with the heavy drop in prices for cortain straightened out. True, there are Light sharea grew to a point when exchange, as
Europe, and Australia. met by non- grades of paper are still being show, that America is the heaviest found on page 13 of this issue.].
[Daily Share Quotations will be still large sums outstanding, but all inquiries were
the amalgamation offered in local currency at hele buyer, purchases amounting to a since there is no hope whatever of believers in
home prices, due to such grades any of these areounts ever being rumour. met, brokers generally have taken China Lights in spite of the having been imported and paid for quarter of a million dollars. In all, it is estimated that 7,000 bales- of breaking-off Although things philosophically.
negotiations for when exchange was ruling at over
containing about 30,000 pieces of is. ld. those outstandings have cot been amalgamation, have gone up, this
chairs, settees and tables, lamp and flower stands, flower-baskets, actually written off, they are not being no doubt due to the good
The result is that very few orders and blinds-were placed on any higher footing than prospects of the Company, and
shipped to the category of doubtful debta.
have been placed during the latter America. Australia and South part of this year. While the turn-Africa have purchased about 10,000 Consequently, at the beginning of this year, brokers who were still on
ove this year may not appear to pieces of furniture made from be altogether low, it must be re- the market had a far better iden
rattan and cane, valued at about Yet another factor contributed to of their own standing than they the prosperity of the share market,
membered that certain large ship- $60,000. Europe also bought a did, say at the beginning of 1990, this being the falling dollar, which
ments which have been coming small quantity, but nothing like the 1027 and 1028. This was fortu led to a number of investors over-
forward-particularly during the amount taken up by America and tireumstance, for Date
it made sens taking the opportunity of buy frst half of the year-are in execu-Australia and South Africa. everyone cautions not to exceeding. Hong Kong shares. All the tion of orders placed during the their sommitments, and later in the higher-priced stocks are followed by
atter part f 1998, and which home year, nithough forward business investors from abroad, but parti- suppliers in the majority of cases was indulged in, caution was the cularly Banks and Unimis, and a
were act prepared to cancel. kernote, and gambling in the real fall in the dollar usually bringe a sense of the word was reduced to a good deal of money into Hong Kong for investment in these stocks. Banks and Unions went up appre ciably just before the end year, and quite a big business was recorded in these stocks during that Improved Business,
minimum.
main idle in the banks..
Possibly also to the offering of new shares to shareholders at par.
period.
The Falling Dollar.
handled
were
Very Few Orders.
a very
It
MANY OBSTACLES TO BUSINESS.
PRICES MAINTAINED,,
ACCOUNTS" AND REGISTRATION.
A HALL-MARE WANTED.
ported.
as
Salt-A great deal of salt has been produced this year on account of the drought. Prices were low owing to over-supply and the mer The annual dinner of the Man-chants made no profita. chester and District Centre of the London Association of Accountants took place at the Queen's Hotel, Manchester, last month. Mr. W. Williamson, chairman of the centre, presided.
THE CHANGING GOLD STANDARD.
DISAPPOINTING PROGRESS
•
OF CONTROL.
сп
4.
In cross-examination witness said that the, evidenco given by the two earlier witnesses, that they had seen him atrike the deceased wo tive evidence was given by the In- man, was entirely false, Corrobora- dian constable, and the young wo- man complainant, also stated that she did not see the defendant strike or kick anyone.
witnesses.
His Worship commented on the unsatisfactory nature of the evid ence. against the defendant, There was no evidence that he had kicked the deceased woman, and he was accordingly discharged.
WELSHMAN'S HOPE OF A BARGAIN.
A CAR FOR "$10 DOWN."
The representative of a big Bri- tish firm at the Motor Show at Olympia has been telling the fol lowing story: "On Wednesday," he said, "a man who looked as though he had not two half-pennies to "rub, together asked to see a car. Its price was 2300.
Mr. Toole, M.P., who proposed THE SUGAR TRADE.. the chief toast, said be thought the Business actually done in 1929 in
time had arrived when all account- new ordere has been extremely
ants should be registered. If their, amall. A particularly unfortunate.
or any other association, was pre- Mr. O, IL. Hobson, editor-in- feature of the paper trade of this Colony during the year has heer Flooded With Money,
pared to take steps to press for chief of the Financial News, in a ward their desire for registration, lecture to the Incorporated Ac- the heavy loss caused to The Hong Kong market, due to
there were some of those present countants Students' Society of the absence of investments in the
reputable Chinese firm alleged that a person in Europe
who would be delighted to give London the changing gold share market for three years or
them all the help they could. standard, last month, said the vir- fooded with money inore, waS
fraudulently negotiated documenta
(Hear, hear.)
tual abandonment of gold coinage Wealthy Chinese temporarily seek
through a Bank on forged bills of
Sugar merchants report an un-
Mr. T. A. Gillespie, president of throughout the world was induced Other beat stocks which were lading, the amount involved being eatisfactory year for 199, although the London Association of Account by considerations of economy in the ing refuge in the Colony had, dar- ing the period of depression on the largely
Trams, very considerable.
there was not a big drop in prices.
ants, after referring to his visit use of gold,but in a sense it really Rialto, allowed their money to re- Hotels, Wharves, and Landa, The To sum up the situation for 1029, Others inquiries for Trams were certainly it, ray be said that this is the
The lack of adequate banking and with other members of the associa-cut at the underlying foundations
"After looking over it carefully, who, owing to the continued civil due to better business by the Com- worst year Hong Kong has experi- shipping facilities, coupled with the tien to the International Congress of the gold standard. Gold, while he said that he would buy it. When absence of demand from consuming of Accountants this year in New remaining a measure of value, had we explained the price to him be warfare in China, made their homes any, the vast crowds patronising enced since the great trade depres centres, are some of the reasons York, went on to point out that largely ceased to be a medium of
was incredulous. He had come ali in Hong Kong, have been driven the ears during the summer months sion of 1920, due to abnormal con-
the way from Wales with about ten, either to invest in property, or being one reason leading specula-ditions, political disturbances, heavy why the sugar trade has auch a the association was not in favour exchange.
bad year to record. Merchants are of closing the door of the profession A second fundamental change pounds in his pocket expecting to allowed their money to remain idle. turs to figure on a better year. stocks in the market, and the low
moat anxious to reduce their mar- to any boy or girl who had had was the world's new idea that the buy a car. Apparently he had seen By about the middle of the year: 1hen there was. possibility of rate of exchange.
some arrangement being arrived at
gin of profit to retain business, but five years' accountancy experience gold standard must not be free to this affluent section of the com-
an advertisement which read, "You with competitora over bus routes, and ¦ mem
declare they find themselves up and had passed the necessary ac work is liked but be controlled can have this car for £10. Actual munity came into the market to
this was another cause of shares
against too heavy a handicap. countancy beats. (Hear, hear.) so as to avoid considerable changes ly the advertisement said £10 down huy, and a slight rise all round was noted. This alone would not have changing hands. Rumours of the refusing to advance money on cer Regarding shipping facilities, no They were in favour of establishing in its power of purchasing comand monthly instalmenta until the
It was coming, and modities. The shattering effect of car was paid for." helped the market to regain its old sale of the Majestic Hotel in Shang- tain shares, and on other stocks longer is it possible to take delivery a register.
"Remarkable incidents occur here standing, and but for an unlooked hai caused a demand for Hotels, are giving advances of 50 or 60 per ex-ship in quantities of less than must come, and it was the only the war on monetary systems and
300 bags at a time. This question thing that would not only protect commodity prices had directed at- every day,” said another salesman, lar circumstance, the market would and although the actual sale was cent., thus allowing themselves wide
There has been already dealt with in the the public but the incoming, ac tention to the hardships which He said that an elderly woman, have remained much where it was. not made publicly known until margins for eventualities.
about a fortnight ago, yet many has been only one hitch so far, Daily Press, and involves further countant. If the necessary legisla: could arise from a dislocation of poorly dressed; and carrying a When the great crash came in buyers were on the market some and that a very trivial one, so that
expediture, in the case of small tion was delayed difficulties would established price levels, and shabby umbrella, went up to 1925 hundreds of shares were left time prior to the sale, possibly there has been no setback what shipments, in the way of godown be created.
sports in the hands of Chinese bankers armed with some information of ever to the prosperity which began and lighter charges and coolie hire.
Mr. E. B. Fielden, M.P., respond though there was a tendency to ex- stand and asked to see
car in the neighbourhood of fire and others who make a profit out the impending deal. Wharves and in the middle of the summer of Regarding banking facilities, the ing for "The Houses of Parliaggerate both the capacity of
monetary control to maintain a hundred pounds. The salesman, of advancing money against scrip. Lands
introduction of a new charge this mant," proposed by Mr. C. V stable price level and the inherent with little hope of doing any buai- 150 sound stocks, and 1929. Most of these people had been ad naturally came in for a share of
As an instance of the sincerity year of a minimum of per cent. Jarvis, said that people were re-desirability of stability, there was ness, patiently, showed her the car, vancing from 60 to 80 per cent. of the prosperity that marked most of of the brokers in their efforts to
on irrevocable credits without required who were registered as prono disagreement with the proposi explained the details at length, the current share valae. Naturally the local stocks.
put the share market on a sound course is an additional hardship to perly equipped to advise the comtion that monetary control ought and was about to turn to a man a rise in the share market created
Added to this unity on different matter, and he to have as a principal object rea Cements, a favourite with the basis, and to eliminate wild specula sugar merchants.
who appeared to be keenly inter- a stir in these circles. Many who Chinees, enjoyed a small boom all tion as much as possible, a sug there have been some big failures was entirely in favour of giving by
ested in the model, when the, wo- were left with shares had been on their own, and have been goinggestion is afoot to form a clearing in the trade during the year, and Parliamentary sanction full author-sonable stability of prices buying more at cheap prices to re un during the last six months. house to facilitate future settle. this has resulted in many sugarity to those bodies properly con limited objective was contingent one!!
The attainment of even this man said, “I think I will have this duce their average, and the elight Shipping and Dock shares, however, nents. This would have the effect merchants being involved to a stituted to carry out examinations upon co-operation between the lead- "Still doubtful, the salesman rise in the market is anxiously have
Further, as to knowledge and character. ing gold standard countries. Some said, "Yes, madam," shown little improvement,of making settlements simpler, and greater or lesser extent.
The next watched. Others had been waiting this being no doubt due to the bad might possibly prevent dud "the civil war had the effect of re. There was, however, one danger, central banks had tried to move moment the woman had produced
cheques being circulated.
ducing orders from Canton and the which did not apply only to one along the path of international co -good-sized handbag, from which The news of the serious dificul interior, and from Swatow and association or profession, and it operation indicated at the econo- she extracted a large bundle of es tics attending the December settle other consuming centres.
was that those trying for admission Forward business throughout the ment in Shanghai haa been received Java sugar by far the most should be turned down not because mic conference in Genoa in 1922, notes, a proceeding which almost
but after seven years the progress
dumbfounded the salesman. "I the share market came from Chi-year has been on a small scale in this Colony with interest, but prominent commodity in this marthey could not pass the exam made wa disappointing. It was have been saving up for this for nese bankers and moneylenders. except for the December Bettle-
not with concern, and it is certain ket, although some`, sugar comes tions or had not character but be Profit-Taking.
ment, which was fairly heavy, but that the revival of business in the from Formosa. The total value of cause the profession was overcrowd disappointing in two respects. The 15 years," she said simply. "You 888, my son was killed in the war, There were still others who, dur-which-be it noted-is nowhere like share market has not in any way Java sugar imported into Honged, and examinations might take first, was that the Federal Reserve
so I dotermined to buy my grand. What Board had been unable to control the huge settlements of pre-Strike been affected by the news.
Kong for the year is between the direction of exclusion.
son a car when be turned 21:** ing the years of depression, bad days. Speculation in share prices Although the year has been a $25.000.000 to 880,000,000, and it is the community wanted was a hall-American credit and direct its use,
The woman came from a York- picked up cheap parcels, of shares has been restricted, due to the good one for brokers, and it may understood that most of this has mark that a man had passed an and the second was the unwilling from time to time. These, of
Urses best nautizoaning realising Treater retly that the compro AUCKS BIT FREE
fisurely indicat, but aid to go operate in mesting the ones one intending ta cautious attitude of the brokers be confidently hoped that the com- beca soid again, there being very examination to show. not that heness of certain European countries thire village and had travelled, al
gency arising out of that failure. their profits and so, while there were plenty of buyers of cheap (Continued at foot of next column.) a still more prosperous period. of this, prices are not going up. really know his job. (Hear, hear.)
until the market shows some sign of state of shipping generally. life before averaging and hence,
Forward Business. when rates began to go upward in the summer, additional interest in
chase a surprise.