6
votes
Why do banks loan at APR ≤ 3%, rather than investing that principal in ETFs?
The sort answer is because the banks create money through lending, and bank lending is fundamental to a prosperous economy. They are not allowed to create money to invest in equities or ETFs. ...
- 6,440
5
votes
Accepted
Use other's credit card to pay for visa fee
Can I tell him that the bank will reject the transaction because the
cardholder is not the visa applicant, and thus involves risk of fraud?
Is there a general policy applicable to most banks?
In ...
- 145k
4
votes
I bought books from an online shop but it performed a direct debit on my credit card. What should I do?
You have no right for recourse towards the bookshop or the bank.
Whenever you buy something from an online shop, the online shop can charge the exact amount in real-time (using your CVV2 at the back ...
- 10.5k
3
votes
Comparison of bills/rent in UK and Hong Kong
Short version:
The question implicitly assumed many things that are not true. Hong Kong is very different from the UK and thus it is hard to provide a good comparison. Even if we use London for a more ...
- 341
3
votes
Hong Kong Mandatory Provident Fund contribution strategy
As a local Hongkonger who has worked in financial industry, allow me to share my view on this old question, so that it becomes useful to readers today.
Before answering your questions, I shall ...
- 181
3
votes
Student Loans as an Overseas Company Director
When you say the "holding company takes care of your living", I assume you mean they are paying bills like rent and other things on your behalf. In most jurisdictions that would count as ...
- 30.2k
2
votes
Foreign bank transactions
First Google search result for "COT code" showed that it's commonly used in advance pay scams. This Money SE post dives deeper into this as well. It sounds very likely to be a scam.
- 7,926
2
votes
Comparison of bills/rent in UK and Hong Kong
The only thing that matters in this case is how much extra money a person/household has. If someone has no spare money in their budget then an unavoidable increase in their expenses may cause them ...
- 1,069
2
votes
Accepted
How is "Turnover" in HKEX different from "Volume"?
Turnover in Hong Kong is Sum of Price per Share multiplied by Number of Shares of each transaction.
- 10.5k
2
votes
Currency exposure of China stock in HKD
There are two types of shares that you are talking about:
H Share - HKD traded at Stock Exchange of Hong Kong, held by a Hong Kong nominee service (Think ADR)
A Share - CNY (Onshore, not to be ...
- 10.5k
2
votes
Accepted
How can I buy an ETF on Stock Exchange of Hong Kong as an investor in the USA?
The thing about ETF market in Hong Kong is that they are illiquid.
Even for HKD denominated symbols, the bid-ask spread is huge and the minimum tick size is also huge, and there are transaction fees ...
- 10.5k
2
votes
Why do banks loan at APR ≤ 3%, rather than investing that principal in ETFs?
Because of risk.
A norma lbank is in the credit business - it is VERY controlled in what risk it can take these days. Investing in Stock ETF is jsut not compatbile with the risk profile a bank (which ...
- 11.6k
2
votes
Where does a nomadic Spanish national owe taxes?
Can you even figure out where in that agreement, or in Hong Kong law, says the income is subject to taxation in Hong Kong?
I think this case should be solved by a professional tax advisory, but here ...
- 80
2
votes
Accepted
How can you rebuild credit in Hong Kong?
TransUnion, the only credit information provider in Hong Kong, keeps negative information on your credit report tends to fall off five years after the accounts are settled, or eight if you’ve been ...
- 236
1
vote
Why do banks loan at APR ≤ 3%, rather than investing that principal in ETFs?
Take a simple example of a bank that is able to led 5x its deposits to lend as standard home mortgages (leverage is much more complex than this in modern banks but does fine for a toy example).
...
- 5,768
1
vote
Better to get loan from finance company or bank considering the drop of credit score?
It should not really matter who you go to purely in terms of credit score. Generally if you have a higher credit score you may get better loan terms from a bank, where a finance company will often be ...
- 1,886
1
vote
How do I choose a bank for a mortgage on property overseas?
For individuals this would be difficult; more because the ticket size is small and the risks are not quantified / not fully understood. Most Banks may not want to offer such products. This is more ...
- 57.2k
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