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Gold/Mining/Energy : Capital Alliance Group - CPT (CDNX) -- Ignore unavailable to you. Want to Upgrade?

To: robnhood who wrote (224)	4/4/2000 10:42:00 PM
From: Crazy Canuck	Read Replies (3) \| Respond to of 960

Here is a copy of a post that I just contributed to the StockHouse Bullboards thread. I posted it in response to an article that dealt with the recent move by NASDAQ to co-list selected companies on the Hang Seng (Hong Kong) stock exchange. I sent a copy of this article to Mr. Toby Chu (President, and CEO) of Capital Alliance Group Inc., and I am including his response to it. Here is the link to this article. stockhouse.com Here is a copy of the post I just posted and what that article means to CPT and SEG. ______________________________________ Good Evening Pritz, After reading that article you recently posted about how the NASDAQ will be co-listing a few selected leadership stocks on the Hang Seng stock market in Hong Kong, I recalled a discussion I had held with Mr. Chu where he had made reference to this issue. I could not clearly remember the essence of what he had said, so I decided to ask him again. As a result, this morning I sent Mr. Chu an e-mail to ask him his opinions what this article and the NASDAQ move into Hong Kong means to his company. Here is a copy of my e-mail to him followed by his response to me. Crazy Canuck -----Original Message----- Sent: Tuesday, April 04, 2000 10:08 AM Good Morning Mr. Chu, The article I have attached to this email was posted on your company's StockHouse Bullboards thread yesterday. During one of our discussions, I recall hearing you mention that the move that the NASDAQ is making of listing a representative group of stocks onto the Hang Seng was not a perceived threat to your company. Could you please let me know (from your perspective) how you see this impacting your SEG plans. Thank you Sir, and I look forward to hearing from you. ------------------------ Mr. Chu's response to me Tuesday, April 04, 2000 6:28 PM Hi, The news of co-listing US stocks trading on the Hong Kong Stock Exchange was one of the best news we could have heard for SEG. The globalization of securities trading was the exact vision SEG had projected a year ago, thus the SEG project was born. The announcement made by NASDAQ 3 months ago merely confirmed our vision. The reasons US shares co-listing in Asia is beneficial to SEG are: When NASDAQ makes their shares available for trading in Asia, they need a supporting infrastructure to facilitate the Buy or Sell. SEG becomes one of those infrastructures, as well as other NASD dealers. The time zone difference is "12-15 hours (EST/PST). With NASD dealers, when was the last time you had some one answered your call when you phoned your broker after 4 p.m.? Today, only a handful of NASD dealers are prepared to man their office after hours to accommodate trading for only 7 US stocks. The cost doesn?t justify the means. Even a less number of Canadian brokers are interested in extending their office hours to accommodate those Canadian investors who want to buy US stocks trading overseas. Well, here comes SEG. Why bother calling your US or Canadian brokers if you can sit in the comfort of your home and place your order directly with a reputable overseas broker and buy those stocks you are already familiar with? Besides, your US NASD dealer will regularly charge you twice the commission from both sides of the world because they have to protect the interest of their overseas office, such as Merrill Lynch, Charles Schwab, E-Trade, Goldman etc. Furthermore, many US/Canadian full service brokers will only offer order execution, and when times are busy, they will not be able to spend time with you on the phone. SEG provides real time & delayed quotes from overseas, order executions, and research reports at half the rate. A quote from the article you attached: *"Herbert Lau, associate research director at Celestial Asia Securities Holdings said (trading of co-listed stocks is likely to involve higher than normal fees, investors may be turned off.) "* If these investors are using SEG, they certainly will not be paying the higher fee because they will have by-passed one level of brokerage cost. As we all know, timing is everything for the Internet business. While a majority of NASD brokerage firms are hesitant to extend their business hours to 1 a.m. to accommodate this shift of globalization, SEG will be quietly acquiring their customers and building a solid relationship with the investors. This will allow us to establish our expertise in this new trend, and become the new industry standard of globalize trading. It is my strong believe that the trend of global trading is the beginning of a new era. In less than a few years, not only are US stocks going global, but overseas stocks will also be available to North American investors. It?s a two way street. Already there are talks between Asian and European countries demanding their stocks to become freely marketable following the same trend as NASDAQ Japan and NASDAQ Europe. For example, companies such as Hong Kong Bank and Nokia are now trading on the NYSE. SEG will be ready to capture this major shift in investment habit. Younger generations are becoming more in tune with the Internet, thus making world news and updated information available faster then ever. A new rising star coming out from India or Hong Kong can be as attractive as a rising star coming out of the Silicon Valley. Today, North Americans know little or nothing about foreign markets. They will soon realize there are tremendous investment opportunities outside of the US, and at a cheaper price. Toby Chu