In the wake of stock market fluctuations that have cost some investors a lot of money, Hong Kong universities are stressing the importance of knowing what risks are involved in playing the market.

More and more students, for instance, are putting money in the market, often without consideration of the potential losses they could incur.

University of Hong Kong Dean of Student Affairs Albert Chau said the school had received an enquiry from a student who had lost money in investments.

Chau didn't believe that the student's losses were extreme, as he had not requested a school loan, but he did ask whether his tuition payment could be deferred.

"We told that student that he could seek help from a psychologist and counselor if he becomes worried and loses self-restraint," Chau said.

Chau said the university presents annual seminars on financial management to freshmen and offers courses on investment risks in the liberal studies curriculum. But some students still miss the message, or simply choose risk their money.

In the past week, for instance, students such as Alan Ng, in his third year at the Chinese University of Hong Kong, lost money in the market.

Ng's hit came at around HK$50,000. He said he previously made his money buying low-priced stocks, such as shares of Industrial and Commercial Bank of China, before they went up.

"I was unhappy, as the price of some stocks closed to their initial offering price," he said.

Ng said one of his classmates is just as unhappy at his loss of HK$60,000 in capital over the past few days.

That classmate started investing in warrants last year and believed that all kinds of stocks could generate good returns. His confidence was lost after the market was rocked.

Indicating that there has been an increase in stock investing by students, Hong Kong Baptist University Investment Club President Andy Chau said the club's membership has increased from 100 last year to 150 now.

He said that about 80 percent of the members were inexperienced in the financial market but eager to learn.

The club was established last year with HK$900,000 in private donations. The executive committee members of the club need to invest the money under the supervision of professors.

Chau said the club recorded a 40 percent gain last year, but saw a drop of between 10 and 15 percent this month.

As a result, the club's investment portfolio will be modified to invest in stocks that are less sensitive to the United States sub-prime mortgage crisis, Chau said.

Chau's investment history goes back four years, when he used about HK$100,000 to purchase stocks. The capital was from a scholarship and money given by his parents to pay his tuition.

Chau said he got his parent's approval to invest the tuition fees and he had set a stop-loss level.

"I needed to ensure that I could pay the tuition fees," he said.

(HK Edition 01/24/2008 page1)