Ding Hai Effect
Encyclopedia
The Ting Hai effect , Adam Cheng effect or Chiu-Koon effect is a peculiar stock market
phenomenon. The phenomenon is observed that whenever Hong Kong
actor Adam Cheng
stars in a new television
show, there is a sudden and unexplained drop in the stock market. This is still a popular topic amongst stock brokers, years after the drama series Greed of Man was broadcast in Hong Kong in October 1992. The effect is named after Ting Hai (丁蟹), the main antagonist of the show, played by Cheng himself.
, which featured some of the most popular actors and actresses of the time. The drama centred heavily around the stock market, and the schemes and plots of those who struck it rich in the market. Cheng, who played Ting Hai in the drama, made an immense fortune with his four sons by selling short derivatives and stocks during a bear market. Many people went broke, but the Ting family became richer and richer until an eventual defeat by the Fong family nemesis.
(潮爆大狀) premiered, there was a sudden rise in the Hang Seng index by 258 points. Other big increases include the broadcast of The Conqueror's Story (楚漢驕雄), Legend of Chor Lau Heung (香帥傳奇), the Driving Power (非常外父).
While some investors have argued that the effect is no more than a series of coincidences and amounts to nothing more than a self-fulfilling prophecy
, the show's peculiar effect on the stock market is regarded by some as more than coincidence. It was also confirmed that Crédit Lyonnais
wrote a report on this matter.
This strange phenomenon also created a career trough for Adam Cheng in Hong Kong during the 1990s, for the two over-the-air television stations in Hong Kong avoided using Cheng for its dramas, partly (if not completely) because they did not want to bear responsibility for a stock market crash.
Stock market
A stock market or equity market is a public entity for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.The size of the world stock market was estimated at about $36.6 trillion...
phenomenon. The phenomenon is observed that whenever Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
actor Adam Cheng
Adam Cheng
Adam Cheng Siu-chow is a Hong Kong TVB actor and Cantopop singer.-Career:Cheng started his career in the 1970s, where he gained a reputation for playing the lead roles in TVB Wuxia drama series based on the works of Louis Cha and Gu Long, such as The Heaven Sword and Dragon Saber and Chor Lau Heung...
stars in a new television
Television
Television is a telecommunication medium for transmitting and receiving moving images that can be monochrome or colored, with accompanying sound...
show, there is a sudden and unexplained drop in the stock market. This is still a popular topic amongst stock brokers, years after the drama series Greed of Man was broadcast in Hong Kong in October 1992. The effect is named after Ting Hai (丁蟹), the main antagonist of the show, played by Cheng himself.
History
In 1992 TVB aired the drama The Greed of ManThe Greed of Man
The Greed of Man is a TV drama series broadcast by TVB in Hong Kong in 1992. The story, spanning three decades from the 1970s to the 1990s in Hong Kong and Taiwan, addresses various social and financial phenomena of the times, from violence in triad criminal organizations to corruption in the Hong...
, which featured some of the most popular actors and actresses of the time. The drama centred heavily around the stock market, and the schemes and plots of those who struck it rich in the market. Cheng, who played Ting Hai in the drama, made an immense fortune with his four sons by selling short derivatives and stocks during a bear market. Many people went broke, but the Ting family became richer and richer until an eventual defeat by the Fong family nemesis.
Occurrences
Initially, the Ting Hai effect occurred whenever the TVB drama series Greed of Man or its loose sequel, Divine Retribution (世紀之戰), made by ATV was broadcast. Later, it was also observed that the effect occurs whenever a new drama show that Cheng stars in was aired.1990s
- October 1992: The drama series Greed of Man made its debut on TVB. During the time it was broadcast, the Hong Kong's Hang Seng IndexHang Seng IndexThe Hang Seng Index is a freefloat-adjusted market capitalization-weighted stock market index in Hong Kong. It is used to record and monitor daily changes of the largest companies of the Hong Kong stock market and is the main indicator of the overall market performance in Hong Kong...
dropped 598 to 600 points - November 1994: Instinct (笑看風雲) made its debut on TVB. The Heng Sang Index fell more than 2,000 points.
- September 1996: Once Upon a Time in Shanghai (新上海灘) premiered on TVB. The Hang Seng Index fell 300 points.
- June 1997: Cold Blood Warm HeartCold Blood Warm HeartCold Blood Warm Heart is a TVB drama serial broadcast in 1996. The TV series had 65 daily episodes.-Plot:Tsui Wing Pong and Tsui Ka Lap are adopted brothers. Pong was sent to the Tsui family when he was very young because his biological father abandoned the family during a difficult period...
(天地男兒) made its debut on TVB. The Hang Seng Index accumulated 735 points in losses. - December 1997: Legend of Yung Ching (江湖奇俠傳) was followed by a fall of 1.4% in the Hang Seng Index.
- June 1999, Lord of Imprisonment (神劍萬里追) was followed by a fall of 6.5% in the Hang Seng Index.
2000s
- September 2000: A loose sequel of The Greed of ManThe Greed of ManThe Greed of Man is a TV drama series broadcast by TVB in Hong Kong in 1992. The story, spanning three decades from the 1970s to the 1990s in Hong Kong and Taiwan, addresses various social and financial phenomena of the times, from violence in triad criminal organizations to corruption in the Hong...
, Divine RetributionDivine Retribution (2000 TV series)Divine Retribution is a TV drama series broadcast by ATV in Hong Kong on 11, September 2000. The series is supposed to be a sequel to TVB's 1992 series The Greed of Man, and was initially called , literally "Greed of Man 2000". Part of the reason for the name change was said to be due to legal...
aired on ATV. Due to the Tech stock bubble at the time, the Hang Seng Index fell an accumulated 1,715 points, with other stock markets around the world falling as a result also. - March 2004: Blade HeartBlade HeartBlade Heart is a Hong Kong television series released in 12 March 2004 by TVB.-Cast:*Adam Cheng as Ling Fung / Yu Man-fung*Liza Wang as Tong Bik / Mrs Wong*Raymond Lam as Mang Lui / Captain Cho Ngan*Shirley Yeung as Wong Yee...
(血薦軒轅) premiered in Hong Kong, the Hang Seng Index fell 550 points over 3 days due to high oil prices and instabilities in the Middle EastMiddle EastThe Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
. - October 2004: The Conqueror's Story (楚漢驕雄) premiered in Hong Kong, followed by a 198-point drop in the Heng Seng Index on the day of the premiere.
- March 2005: The Prince's ShadowThe Prince's ShadowThe Prince's Shadow is a Hong Kong television series first broadcast on TVB in March 2005.-Cast:*Adam Cheng as Ko Sing*Sheren Tang as So Sam*Tavia Yeung as Yu-yee*Marco Ngai as Kin-lung Emperor*Joyce Tang as Empress*Carlo Ng as Chow Yat-ching...
(御用閒人) broadcast of the first episode, the hang seng dropped 100 points by noon, then rose back 90 points by the end of the day. - July 2007: Return Home (香港傳奇-榮歸) broadcast and the market to fell 1,165 points.
- March 30, 2009: The King of Snooker (桌球天王) premiered in Hong Kong. The Heng Seng Index fell 663.17 points.
Exceptions
There were a few times when the Ting Hai effect did not occur. In April 2006 when Bar BenderBar Bender
Bar Bender is a TVB modern drama series broadcast in April 2006.-Synopsis:The series revolves around a fictional Hong Kong senior counsel named Tony Tseung . Senior Counsel Tseung is well known for winning 31 legal cases in a row, but is also notorious in legal circles for his unsavory tactics...
(潮爆大狀) premiered, there was a sudden rise in the Hang Seng index by 258 points. Other big increases include the broadcast of The Conqueror's Story (楚漢驕雄), Legend of Chor Lau Heung (香帥傳奇), the Driving Power (非常外父).
Conclusion
The Ting Hai effect has led to Adam Cheng attracting much press attention. Now, whenever a new show starring Adam Cheng is about to be broadcast, some stockbrokers and investors in Hong Kong become wary, even anticipating a drop in the market.While some investors have argued that the effect is no more than a series of coincidences and amounts to nothing more than a self-fulfilling prophecy
Self-fulfilling prophecy
A self-fulfilling prophecy is a prediction that directly or indirectly causes itself to become true, by the very terms of the prophecy itself, due to positive feedback between belief and behavior. Although examples of such prophecies can be found in literature as far back as ancient Greece and...
, the show's peculiar effect on the stock market is regarded by some as more than coincidence. It was also confirmed that Crédit Lyonnais
Crédit Lyonnais
Crédit Lyonnais is a historic French bank. In the early 1990s it was the largest French bank, majority state-owned at that point. Crédit Lyonnais was the subject of poor management during that period which almost led to its bankruptcy in 1993...
wrote a report on this matter.
This strange phenomenon also created a career trough for Adam Cheng in Hong Kong during the 1990s, for the two over-the-air television stations in Hong Kong avoided using Cheng for its dramas, partly (if not completely) because they did not want to bear responsibility for a stock market crash.