Monday, May 24, 2021

Withholding tax by country of major markets

Withholding tax by country of major financial markets

Australia30%
Canada25%
China (Mainland Incorporated)10%
China (Offsohore Incorporated)0%
Hong Kong0%
Japan20.42%
Singpaore0%
Singapore REITs10%
U.K.0%
U.K. REITs20%
U.S.30%

Source: https://www.spglobal.com/spdji/en/documents/additional-material/withholding-tax-index-values.pdf

Sunday, May 23, 2021

Most stock pickers loses to the index? Just buy the index. Does this advice work in Hong Kong?

If you invest in the Hong Kong stock market, Tracker Fund (2800) is one of the bigger and better-known funds. Does just buy the index work?

source: charts created from https://www.tradingview.com/

If you invested in 2800 10 years ago (2011-05-16 to 2021-05-17), in the course of this 10 years, you are looking at about 23% capital appreciation. Assuming inflation at 2% p.a., it barely tracks inflation of ~22%. The good news is there is a dividend, and you would have collected 8.01 HKD per share, and this doesn't look too bad.

source: http://www.aastocks.com/en/stocks/analysis/company-fundamental/dividend-history?symbol=02800

Let's look at trading view says when we click the "adj" - adjust data for dividends, and we are looking at about 70% return.

source: charts created from https://www.tradingview.com/

However, if you look at VTI and DIA in US, you can see 2800 really lacks behind:
  • VTI rose 210.92% for the same period
  • DIA rose 173.96% for the same period
source: charts created from https://www.tradingview.com/

Although, past performance is not indicative of future results, given this observation, should we bother with investing in the Tracker fund (2800)? Or any Hong Kong index fund / ETFs at all?

Wednesday, May 19, 2021

Is Kotlin still a good choice for JVM based backend today?

It has been while since I start a new JVM project. I needed to build something quick and dirty, e.g., within a day or two, so I went with something I was most familiar with, Spring Boot, to get the project up and running.

It has been a while, but Kotlin has been the crazy a few years back and I had used it a few times with my previous employer. It is now a choice among the JVM languages. I have been away from the JVM space for more than a year (and boy, do I miss it), so it was either Java or Kotlin for me. I went with Kotlin just to keep it interesting.

I went with the Spring Initializr, picked my poison and got my project up in no time. It is a simple Web-MVC application, with one simple page with a form, some REST API call out to other services, and read only to database. Picking Gradle for build and Kotlin for language, the project generated a Kotlin base build file build.gradle.kts. This is new to me, but the script is still very readable, so no extra learning curve here.

Last time I used Spring Boot with Kotlin, I recalled there are little things here and there that we need to "tweak" to get Spring Boot feature to work properly with Kotlin. These "tweaks" feel like some inherent mismatch between Spring Boot and Kotlin. For my new recent project, it appears all these “mismatch” still exist.

For example, to use Kotlin data class as @ConfigurationProperties object, we need to add this @ConstructorBinding annotation to the class and add “kapt” plugin to the project. This feels like some sort of workaround for some incompatibility between Kotlin data class and how Spring Boot @ConfigurationProperties works.

Next adding spring-data-jpa support with Kotlin, we need to add another slew of plugins “plugin.allopen”, “plugin.noarg”, “plugin.jpa”, and some custom extra gradle configuration:

allOpen {
    annotation("javax.persistence.Entity")
    annotation("javax.persistence.Embeddable")
    annotation("javax.persistence.MappedSuperclass")
}

These little problems are often the reason why many “experienced” developers still refuse to adopt higher order frameworks such as Spring Boot and Ruby and Rails, and prefer to keep rolling their own, copy-and-pasting from past projects, because when the magic works, it is awesome, but if it doesn’t, trying to find the problem on your own is like trying to find a needle in a haystack. This is the size of the ecosystem matters, and the good old Spring Boot and its "Google-able-bility" is still top notch.

The target deployment environment is Kubernetes and I had experience using Docker and Dockerfile to build image, but Spring Boot simplified this for me and all I need is run gradlew bootBuildImage. With a little bit more work to setup the Gitlab pipeline to use kustomize and kubectl to push to EKS, the application was up in a day.

This got me thinking: Is Kotlin still a good choice for JVM based backend today?

With Java 17 LTS fast approaching, and many awesome language features added since the last LTS, such as java records in Java 16, it appears the language level gap between Kotlin and Java has shrunk. So, does it still justify using Kotlin, knowing that all these little incompatibility between the language and other frameworks? I think I found my answer in a comment by rzwitserloot in r/java.