With regard to the suspension of dividend payment by HSBC Holdings, I have the following views:
1. No matter how much confidence you have in holding shares, it is not suitable to win a single bet. Proper investment diversification can help spread risk, which I have always emphasized. Who can ensure that HSBC will not become Lifeng, or even Esprit?
2. People often asked me why I chose Hong Kong Telecom-SS (06823) instead of PCCW (00008), Hong Kong Broadband (01310) or CITIC International Telecommunications (01883). One of the reasons is that 06823 Spin-off listing in the form of a trust.
This trust deed stipulates its dividend payout ratio and cannot be changed at will. Therefore, if the intention is to take interest as the purpose, I think the trust will be the better choice.
3. The European Central Bank and the Bank of England have instructed European banks not to distribute dividends and stop repurchases before the end of the year, and to reserve funds in response to the epidemic that may lead to economic recession and potentially huge bad debts. If the situation is worse, the European debt crisis will also be triggered. Maybe, as an investor, you need to beware of this risk.