What to do with HKD

dual currency deposit against a currency you like

if the money is not critical to maintaining lifestyle and you are not likely to purchase property soon...

find a capital guarantee product offshore and invest it 1,2,3 years AUS dollar product might make sense...or to be safe stick with HKD investment in the same product lines.

fixed income product local, or even equity product. market will take another downturn probably this autmun, but it will climb thereafter

(not an expert or an advisor) just thoughts

HKD is pegged to USD ... and I'm long USD ...

Get yourself some decent financial advice. Real financial advice - avoid insurance products and other high commision rip-offs.

there is no more brilliant than holding it more longer... ask the bank for advice to avoid fee... economic fundamental? you basically seem to know... SAVING!

Alan Greenspan holds his wealth in 3 different currencies to reduce his exposure to currency fluctuation/devaluation. He does not disclose which currencies, but most would think, US$, Euro, Yen.

RMB or RMB based investments may also be considered as there is a likely trend for the currency to (continue to) appreciate.

The advice you receive on a site like - or any mass medium - needs to be taken with a bucket of salt. To make any investment, your personal, unique circumstances need to be taken into consideration - your circumstances - and clearly your knowledge too - are different to Alan Greenspan & Warren Buffet.


On the currency front, the rule of thumb is to hold the currency that you intend to spend. If you intend to buy propoerty in HK, then HKD may well be your ticket, but if you intend to buy your retirement home in France somtime soon, then EUR may well be your currency of choice.


These are all maters to discuss with a qualified, locally-based, properly registered (HKMA), independent financial advisor. Other than these criteria, make sure the company you choose is completely open architecture - ie does not only sell their own funds. You are the client, make your choice wisely. Subject the advisor to a thorough and probing interview about his capability, style, ethics, licensing, etc and if you are not comfortable get another one. Experience counts - get someone who has been through a downturn before and has remained in the game for a while, not some newly qualified, over-titled bank clerk.


I've heard positive things about the company you mentioned, but don't know anything about them myself.

I'd echo the advice that you should look to be invested in the currency in which the things you want to buy are denominated, so that your purchasing power is less exposed to currency risk. If you want a "general" storage of value, you might want to diversify into a basket (but then you should be looking at a mix of fixed income and equities as well, not cash only).


Now, regarding these advisers (Henley, Devere, Financial Partners, etc.): I would be very, very careful. Typically, they are commission based, and thus likely to recommend expensive products that are good for their bottom line, not necessarily yours.


I have been "advised" by all of the above (and more), and they all tell you shiny stories about how they are registered and independent and open and all just working for your best interest and looking to find the best solution for your specific situation, and then they turn around and sell you some ING or Royal Skandia or Friends Provident insurance-linked bond or "platform", which is essentially a tax saving trick (thus not terribly relevant while you are in HK), and expensive.


The fees are normally quite well hidden - rather complicated, with units and quarterly fees with different names here and there, and can easily amount to 2% p.a. or more (before the fees of the underlying funds are taken into account).


Now, 2% p.a. doesn't sound like much, but after say 35 years, it reduces the amount you've saved by a third. So, I'd listen to financial advisors, but be very careful about what they suggest (there's a reason they have very nice offices in central locations...)

I would echo the comment about financial advisers: please very extremely careful and consider your needs and what you would like to achieve. They are commission based and all the fees are paid to them upfront which means the product will have a tied in period of say 5 to 8 years or the term of the product. The fees are hidden and until they hit the statement it is sometimes difficult to appreciate how much they amount to.

+1 on the advice about advisers. Put some of your cash into an index fund like Tracker and leave it to accumulate.