2016年3月1日星期二

University Rankings and HK’s Strategic Positioning





When major controversy over the appointment to the post of the pro-vice-chancellor at the University of Hong Kong (HKU) broke out in 2015, it coincided with the September publication of the QS World Univeristy Rankings (QS Rankings) showing that HKU’s academic ranking fell from Hong Kong’s number 1 spot. 


This inevitably led to claims that political interference and eroding academic freedom somehow played in the drop in HKU’s ratings. Although the compilers of the QS Rankings clarified later that recent incidents would not have any impact on the rankings of universities in the 12 months prior to the publication of the results, suspicion over the link between politics and academic standards are hard to dispel.


The author takes this opportunity to delve into the underlying data of the QS Rankings and compare against a number of relevant social and economic league tables and metrics to identify any correlation between these factors and university rankings in general across the world.


Conclusion 1: Availability of resources helps university rankings
It should be common sense to link standard of education to the amount of resources dedicated to the undertaking; for example, most people would naturally expect wealthy countries to score highly in the university rankings. This relationship is clearly demonstrated in Chart 1, where the top university of countries (i.e. ranked number 1 in
in the country) with higher per capita GDP tend to score higher in QS Rankings.


Chart 1: QS Ranking of national champions (no. 1 in each country) against per capita GDP
 

It is clear from the chart above that rich countries such as the UK and USA have their top universities scoring highly within the global university community. Likewise, Hong Kong fits into the pattern with its high per capita income coinciding high scores for its top university. 

There is however one significant outlier to this relationship between national output and university standards: China – this departure from the norm will be explored later on in this article. On the opposite end of the extreme to China is United Arab Emirates (red arrow), where, despite vast fortunes brought about by its crude oil industry, has not been able to fully capitalize on the resources available to raise the standards of its universities.
 



Conclusion 2: Rule of law, press freedom, & clean administrations deeply affect rankings

Besides financial resources, most people would intuitively regard freedom of thought as having a strong role to play in academic performances of universities. We therefore look into the various aspects of freedom of thought in this section.



The Corruption Perceptions Index (CPI) measures countries and territories based on how corrupt their public sector is perceived by various expert surveys. Comparing CPI scores (higher means less corrupt) with QS Ranking champion university scores reveal a pattern (Chart 2) similar to what ‘intuition’ suggested – more honest governments yield higher ranking universities. This correlation also holds when we extend the comparison to include the top three universities of each country (instead of just the number 1 entry), further supporting the thesis that low corruption results in better university quality (Chart 3).





Chart 2: higher CPI scores (less corruption) leads to higher scores for a country’s top university


 

Chart 3:Same correlation also hold when we extend the comparison

A sign of freedom of thought may be the ability to express those thoughts, and to measure this, we used the World Press Freedom Index (low score means high degree of press freedom) as a proxy. As expected, there appears to be a reasonable correlation between higher press freedom and higher university scores (Chart 4).


Chart 4: academic quality seems to be related to press freedom


Chart 5: more rule of law may promote better university quality



Another aspect of freedom of thought may be related to how a country plays by a clear set of rules which are fair and understood by all, as well as how the results of academic work is protected – here we compare the Rule of Law Index with QS Ranking, and the results are shown in Chart 5 above. As suspected, higher rule of law scores seem to represent countries with higher university scores.


The above three indicators have some degree of commonality among them (Figure 1). We merged them into a single index and compared with university scores in a standalone exercise, the results are shown in Chart 6 below.  Unsurprisingly, press freedom, rule of law and honest government all seem to contribute to the running of successful university education.





Figure 1: the main elements of the three indicators

 

Chart 6: Integrated index also influence the quality of university education
 

Conclusion 3: more science and engineering disciplines help lift university rankings

At the start of this text we noted the peculiar situation of China possessing high ranking universities despite the country’s low per capita GDP. This may come down to the total size of China’s economy – as long as the absolute quantum is large, there will be enough resources to focus on a national champion, and given China is the world’s second largest economy, achieving more than one national champion in the university league tables should not be an unsurmountable challenge. Besides, the high proportion of science and engineering students in China also helps its cause.



How could this be so? This may be because science and engineering subjects have far more practical areas to undertake research, and where the results are much more clearly defined, helping to score on the various university ranking metrics. In addition, many scientific disciplines may benefit from national defence related spending, and research findings here may be less affected even when the environment may be more restrictive as far as rule of law, press freedom and honest government criteria are concerned.



This ‘science factor’ also explains why there is a stronger presence of science/engineering schools amongst the top university ranks. For example, in Chinese speaking areas, NTU Singapore, Tsinghua, and HKUST all have over half the student body studying for science subject. This help them excel in rankings versus their more liberal arts centric compatriots such as HKU and Fudan (see Chart 7, blue shade).



The ‘science factor’ also works in USA, for example, MIT (with >60% students studying sciences) is far ahead of Columbia (less than 10%) (Chart 7, red shade). Similarly in the UK, Imperial (nearly 70% science students) also ranks higher than KCL (below 10%) (Chart 7, green shade). 


Chart 7: the higher the proportion of science and engineering students, the better ranking?


 

Conclusion 4: Financial centres need only attract talent, not nurturing it

In order for the ‘science factor’ to excel, however, the need for supporting infrastructure can be immense (eg space for laboratories, workshops) not to mention attractive environments (New York, London are no match for Boston and Cambridge), which are in short supply in financial centres.

Even so, this has not prevented New York and London to become global financial centres despite not having the top ranked universities situated in their city boundaries – the top two universities in USA are Harvard and MIT, and the top two in the UK are Cambridge and Oxford (Chart 8). 



The lesson for Hong Kong, if it is to fulfil its aspiration to be a global financial centre, is this: there is no need to set aside precious land, manpower, or financial resources to manufacture its own ‘world class’ university. By becoming a master of one – creating the right conditions to attract talent and consolidate its position as a top flight global financial centre – Hong Kong can avoid the alternative fate that being a jack of all trades entails: descending into an also-ran city.





Chart 8 : national champions need not be located in global financial centres


 

Conclusion 5: Privately run universities excel, governments should stop meddling

Another important phenomenon the QS Ranking tables throw up is the fact that most of the top ranking international universities are privately run, not bureaucracy managed. Starting with global number 1 ranked university down, one can see that as one descends the rankings, the proportion of government run universities increases (Chart 9). This phenomenon could be more pronounced if one excluded the fact that private institutions lack the unlimited resources of the public purse – highlighting the superior execution capabilities of the private sector. 



Chart 9 : as one goes down the rankings table, proportion of private universities also falls





Furthermore, this phenomenon has its parallel in the primary and secondary schools universes, where the most reputable entities also tend to be privately run. This proves the basic economic principle that no amount of bureaucratic good will is match for the proactive abilities of the private sector.
 
The crucial lesson to be learned by Hong Kong includes: privatise all universities, enlarge and facilitate the importation of talent schemes to encourage the best people to enter Hong Kong, as easily as Brits heading to London for the best paid jobs, or Americans seeking their fortunes in New York. Only by declaring a global war on attracting the best of the best can this city grow in an increasingly competitive world.


One of the first areas the HK government needs to dismantle barriers is that surrounding the medical profession – not only will this raise service standards in the fast falling public hospitals, reduce private sector medical bills, this move can also increase the critical mass of talent required to make Hong Kong the de facto regional (if not global) high value-add medical destination.



Final words

So what does this research exercise tell students and parents? Perhaps none. This is because the conclusion is already practised by all – they voted with their feet in entrusting their future to private universities located in wealthy, free, and low corruption countries. We merely visualised the behaviour in a series of charts.



This article was researched and written with significant input from Mr Simon Cheung, whose contribution is greatly appreciated

 

 

2016年1月11日星期一

20160111 走資潮衝擊樓市 買商廈保險

    「我從未遇過這麼難預測的市況,因為全球環境極具挑戰性,各種危機會隨時爆煲。」資深樓市分析員、創辦人王震宇表示,未來幾年他不會再預測樓市有多少升跌,「那些說跌三成、四成的大行預測其實很不負責任」。

    2015年初,王震宇曾預言本港樓市在未來兩年會出現大逆轉,甚至重現1998 年樓價暴跌的慘況。

    年底接受訪問時,他重申此觀點,「當下環球經濟不景氣,如果歐債危機出現,信貸收縮的情況可能會比1998年更嚴重。不過,如果救市措施反應夠快,也可能會如2009 年那樣,政府大量印鈔,樓價在插水後又再次回升。1998年香港是震央,而這次的震央在遙遠的歐洲,所以樓市可能會受到「金錢海嘯」的衝擊,波動很大」。

歐債若爆煲   資金流向美元

    
    王震宇一直從資金流角度觀察樓市變化,他直言,歐羅區主權債務危機已成為未來兩年內威脅性最大的定時炸彈,「目前,全球1/3的資產儲備都是歐羅,炸彈一旦引爆,就會出現大規模走資潮,龐大的資金將會流向美元,繼而影響港元和樓市」。
   
    他分析,歐債爆煲的可能性愈 來愈大。「歐盟內部近年來政治紛爭不斷,很多反對緊縮政策的政黨陸續上台,如由喜劇演員畢普.格里羅領導的五星運動成為意大利的最大政黨;法國的極右政黨國民陣線則在區域選舉中取得三成選票。」與此同時,希望獨立的聲音也此起彼伏,「西班牙東北部的加泰隆尼亞地區宣布要『脫西』,下一步有可能是『脫歐』;英國也將在2017年底就是否『脫歐』進行全民公投。」
   
    政治混亂,經濟也不景氣。「現在歐洲政府不是減稅、鼓勵人們去創業,反而加稅和進一步緊縮開支,讓本應該復甦的私人經濟更加無力。就連曾經是經濟最為自由的瑞士,也宣布從今年1 月開始,所有銀行賬戶信息實行自動交換,意味着全球資產將難以留在歐洲。」

 「一個事件發生,問題可能不大,但現在,所有不利因素都集中爆發,那麼歐羅區這只駱駝肯定會被壓死。」

    王震宇說,然而很多人覺得歐債不會爆煲,因為歐羅在反彈、失業率在下降,但其實整個歐盟結構上的問題愈發嚴重,「不懂得看那些因素才是最恐怖的。」他提醒:「環球資金流很可能會先逃離歐羅區,接着是日圓區,如果人民幣跟着貶值,也會逃離人民幣區。香港將成為亞洲區流入美元的中轉站。這麼大範圍的環球性走資潮是史無前例的,未來兩年,投資將會變得極其困難,所有人須時時盯緊歐洲情況。」

香港受通縮威脅


    影響香港樓市走勢的另一因素是人民幣貶值。王震宇表示,人民幣進入SDR籃子,且日圓、韓圜、台幣等東南亞貨幣均相繼貶值,在此情況下,中國的內需和出口都將轉差。「要解決困境,人民幣只能貶值,且貶值幅度會挺大,或跌至6.8的水平,這樣投資者將沽出人民幣資產,而轉向港元和美元資產。」

    美聯物業的數據顯示,去年一季度內地人購買香港一手住宅1000萬元及以上的佔比約為41.3%,反映內地民眾對本港一手高檔物業具有較強的購買力。另外,恒大集團、中國人壽等內地公司也先後購入本地甲級寫字樓,可見內地資產正加速流入樓市。王震宇認為,人民幣貶值在一定程度上利好樓市,但從整體環境來看,隨着美元升值,2016 年的香港很可能進入通縮期,租金面臨較大下調壓力,加上失業率有上升趨勢,樓市難有向上空間。

美元房產保本   商廈需求旺

 

▲王震宇依然看淡2016年樓市,但認為美元房產和本地商廈值得投資。 



   在未來樓市不甚明朗的情況下,王震宇建議投資者更應謹慎,不要為了賺取租金反而虧本。「很多人覺得日本樓便宜且有8 厘回報,就瘋狂入市,但日圓滙率從77跌到120多,不見了四成多,8厘回報5年內都難以賺回。所以接下來一段時間應以保本為主,而非追息。」

    保本最安全的避風港自然是美元。隨着歐債危機引發的走資潮,資金流將湧入美元;加上美國逐步加息,美元將持續強勢。「最保守時買入美金,若想有高點回報,則可考慮購買以美元計價的房地產或股票。但不要買債券,因為這次危機是政府債爆煲,一個國家的國債存在很大風險,順帶牽連企業債。」

    王震宇又指,未來本港的非住宅市場,尤其是商廈,將會迎來供不應求的局面,投資商廈將有豐厚回報。「商廈最大的好處是沒有政府的干預,所以容易計算投入和回報。而且,正是政府過分關注住宅而忽視了商廈的供應,未來商廈供應的短缺情況將比住宅更嚴重,加上愈來愈多內地公司進來,足見商廈存在大量剛性需求。政府其實捉錯用神,不應把所有精力放在發展住宅上。」

政府是樓市最大黑天鵝


    自2015 年第三季度起,本港樓市已進入轉角市,住宅成交量下降,樓價升幅也逐漸疲軟。王震宇擔心,未來數年,當公營房屋蜂擁推出時,樓價將出現較大插水。

    房委會數字顯示,由2014/ 15財政年度起的5 年內,政府預計將推出77000個公屋單位,其中2016/17至2017/18兩年間,合共推出31100個公屋單位和6300個居屋單位。

  「本港樓市下跌,最大的始作俑者其實是公營房屋。每次樓市見頂時,政府往往會在樓市接近下次見底時推出大量公屋。若2015 年樓市已見頂,未來三四年迎來下調周期,激增的公屋供應正好踩正下調的樓價,這無疑是雪上加霜,不僅使樓價繼續下調,更拖延了樓價回升的時間。」

    他又指,此前政府多次減辣加辣,已完全破壞市場自我調節的能力,「香港樓市現在是政策市,存在太多政治因素,根本無法預測。過去香港偏向讓市場做判斷,那時可以看fair value來預測升跌,但現在政策做出來的市場是另一回事。」

  「所以,香港樓市最大的黑天鵝其實是政府,因為你不知道它何時會干預市況。政府覺得自己很叻,樣樣嘢都攬上身,就跟計劃經濟一樣。但為何當中國愈來愈資本主義,曾是自由經濟的香港反而去搞計劃經濟,是否很儍呢?政府最好靠邊站,讓市場自己clearing」。