Posted by
woods99
16 yrs ago
I wonder whether anybody can help me, I am writing an article on how Hong Kong has changed over the years, and one way is of course the extraordinary increase in wealth throughout much of the populace.
I had an old expat friend who bought a pretty good portfolio just after the events of the Cultural Revolution, when the Hang Seng was at 280 or so. I remember him telling me that anybody who had been smart enough to buy 1000 Hong Kong Bank shares then would be a millionaire many times over today.
Does anybody know the history, what would 1000 Hong Kong Bank shares bought in 1965 or thereabouts be worth today?
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HSBC (5HK) is now worth 75HKD roughly.. So 1000 shares would be worth 75000 HKD now. I don't know what the stock was worth in 1965, not even sure if it was already listed. But even if you got them for free, you would only have 75000 HKD today. You do have to add the dividends you got over the years, plus there were some rights issues etc.. but you would still be very far from being a millionaire.
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I think the question should be 'how much would 1,000 dollars WORTH of HK shared bought in 1965 be worth now'. There is a tool on the HSBC web site to get prices back to 1990 however it is not as simple as that as you need to take into account stock splits etc
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I ve only managed to go back to 1986. The stock was worth around 6 HKD, that includes all corporate action adjustments (splits.. rights issues etc..)
I agree with boddington that the right question should be what he is proposing.
HSI was created around 1965 and started at 100 pts. It has been multiplied by 200 since then. HSBC has always been a big part of the HSi so should have a similar performance. I don't think you would have made millions. Definitely a few hundred thousand.
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Thanks for the responses. The key to the performance of what is now HSBC, but used to be Hong Kong Bank, is the long period during which there was a rights issue pretty much every year. I suspect that this stock would have outperformed the index pretty handily since 1965, up until the last few years, anyway.
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It probably would have outperformed, but I still don t think it would have made you a multimillionaire.
There might have been rights issues but you would have to keep giving more cash to buy the stock..
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