^HSI - HANG SENG INDEX
| Previous Close | 26,994.10 |
| Open | 27,494.51 |
| Volume | 0 |
| Day's Range | 27,405.26 - 27,687.76 |
| 52 Week Range | 24,896.87 - 30,280.12 |
| Avg. Volume | 1,515,882,324 |
- Bloomberg
Asian Stocks Set to Open Mixed After Trade Deal: Markets Wrap
(Bloomberg) -- Asian stocks look set to start the week mixed after a partial U.S.-China trade deal yielded few details. The offshore yuan was firmer as China avoided extra tariffs.U.S. futures edged higher and Australian stocks opened with modest gains. Futures on Japanese equities were little changed. Washington and Beijing agreed to a first phase of a broader trade deal on Friday that will see China boost imports, including of American agricultural products, and the U.S. halving duties on $120 billion of Chinese goods. The U.S. has also delayed levies that were due to be imposed on Sunday, and China said it will suspend additional tariffs on certain American imports. Oil slipped back below $60 a barrel.Initial euphoria evaporated Friday as both sides were short on details on the highly anticipated deal that also didn’t live up to some analysts’ expectations. Treasuries initially fell on the pact’s announcement, sending the 10-year yield to a one-month high of 1.95%, before reversing losses. The S&P 500 swung between gains and losses, and ended flat as U.S. President Donald Trump signaled he’d cut in half the tariffs that took hold in September. The U.S. will maintain levies that began in the spring.Read more: What’s In and What’s Missing in the U.S.-China Trade DealThe Australian dollar erased gains spurred by the trade deal after the government lowered its economic and budget surplus forecasts for this fiscal year through June 2020 as growth slows. In Asia, China’s industrial production and retail-sales data Monday are expected to accelerate on a year-on-year basis, which would support the yuan.Elsewhere, the British pound consolidated gains after Prime Minister Boris Johnson’s decisive win in last week’s U.K. election, putting the country on track to leave the European Union.These are the main moves in markets:StocksNikkei 225 futures were little changed in Chicago.Australia’s S&P/ASX 200 Index rose 0.4%.Hong Kong’s Hang Seng Index futures fell 0.7% earlier.S&P 500 Index futures rose 0.1%. The gauge was little changed Friday. CurrenciesThe yen was little changed at 109.36 per dollar.The offshore yuan rose 0.1% to 7.0050 per dollar.The euro rose 0.1% to $1.1127.The British pound added 0.1% to $1.3340 after surging 1.3%.The Aussie dollar was little changed at 68.73 per dollar after rising as much as 0.3%. BondsThe yield on 10-year Treasuries fell seven basis points to 1.82% Friday.Australia’s 10-year bond yield declined eight basis points to 1.18%. CommoditiesWest Texas Intermediate crude fell 0.4% to $59.82 a barrel after rallying following the trade deal. Gold slipped 0.1% to $1,474.75 an ounce.\--With assistance from George Lei.To contact the reporter on this story: Andreea Papuc in Sydney at apapuc1@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Cormac MullenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- FX Empire
Asian Shares Soar Amid Trade Optimism
Japanese big manufacturer’s business mood sank to a near seven year low in the fourth quarter, a closely watched central bank survey showed, as the U.S.-China trade war and soft global demand weighed on the export-reliant economy.
- South China Morning Post
Hang Seng Index records biggest intraday jump in two months on trade deal reports
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
- Benzinga
Markets In Asia Surge As US-China Agree On Trade, Johnson Wins UK Election
The U.S. and China have to come to an agreement on phase one of their trade deal, the Wall Street Journal reported on Thursday. As part of the deal, President Donald Trump will roll back some of the existing tariffs, and has canceled the additional tariffs that were supposed to take effect on Sunday, the publication said. China's Shanghai Composite traded 1.78% higher at 2,967.68, while Shenzhen Composite was up 1.71%.
- TheStreet.com
Chinese Stocks and Currency Rally, so the Trade Truce Is For Real
After many a false start, the Phase 1 deal long trumpeted by the U.S. president appears to be coming together. It's still not down on paper, but investors should look East if Sunday's tariffs do avoid implementation.
- South China Morning Post
Hong Kong's deteriorating economy puts city's reputation as business hub at risk if protests persist, says Fitch
Hong Kong's economic outlook continues to deteriorate as six months of street protests drove the local economy into a contraction, while persistent unrest puts the city's business reputation and environment at risk, said Fitch Ratings.The company, the first among the world's three major credit rating agencies to downgrade Hong Kong's creditworthiness, this week said the city's economy is likely to have contracted by 1.5 per cent in 2019, cutting its forecast from an earlier estimate of zero growth. Hong Kong's economy entered into a "technical recession" in the third quarter."International perceptions of the intrinsic strengths of Hong Kong's business environment are still at risk, which could eventually weaken its status," said Stephen Schwartz and Andrew Fennell, Fitch's sovereign analysts based in Hong Kong. "This suggests potential further downside risks to its credit rating."Fitch in September cut its rating of Hong Kong-issued debt to "AA" with a "negative outlook", from an earlier "AA+" rating with "stable outlook", citing the negative impact of the ongoing protests. A "negative outlook" indicates a potential downward trend on its rating scale over a one to two-year period. A negative or positive outlook, however, does not necessarily result in a rating change.While the HK$25 billion (US$3.2 billion) fiscal relief measures announced by the government since mid-August could improve its growth outlook for 2020 slightly, the lingering social unrest continues to make its economic outlook vulnerable, it said.A recent government survey showed that foreign firms particularly value the territory's rule of law and independent judiciary, its political stability and security, but "firms may begin to question these assumptions if political uncertainty continues," Fitch said. Chinese corporate bond defaults to surge to a record high in 2020But some indicators continue to paint a positive picture for Hong Kong's medium-term prospects. These include the city's role as the flagship offshore financing centre for Chinese firms, as exemplified by Alibaba Group Holding's listing on the Hong Kong stock exchange last month. Alibaba owns the South China Morning Post.Banking sector deposits, business registrations and employment visas data too show little evidence that Hong Kong's role as a global commerce centre has diminished."All of this underlines Hong Kong's important role in channelling international finance to Chinese firms, one in which it is unlikely to be easily substituted," Fitch said.But the unrelenting social unrest is unlikely come to an end soon, said Adrian Mowat, CLSA's chief strategist."Our base case is that the current situation continues. There isn't a political solution to it. Hong Kong businesses will continue to suffer from the pressure that we're seeing on the economy," Mowat said.The investment group expects Hong Kong GDP to contract by 1.2 per cent this year, narrowing the contraction to 0.4 per cent in 2020.Heading into next year, CLSA has a more positive outlook for the mainland-stock heavy Hang Seng Index versus the MSCI Hong Kong Index, which is focused on more domestically driven stocks.CLSA has a target of 29,600 for the Hang Seng Index, or about a 10 per cent return next year, Mowat said. By comparison, the MSCI Hong Kong, which includes Hong Kong insurance and property companies, is expected to post a return of just 1 to 2 per cent, he said.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
- FX Empire
Asian Shares Boosted by Fed Signals; Trump to Meet with Top Advisors over Tariffs
U.S. President Donald Trump is expected to meet with top trade advisors on Thursday to discuss planned December 15 tariffs on some $160 billion in Chinese goods, three sources familiar with the plans said, according to Reuters, as markets braced for potential negative impacts.
- Bloomberg
Hong Kong’s Dollar Jumps Into Strong Half of Its Trading Band
(Bloomberg) -- Hong Kong’s dollar climbed into the strong half of its trading band against the greenback for the first time since July, boosted by elevated borrowing costs in the city.The currency climbed as much as 0.13% to 7.7982 per dollar on Thursday, crossing the 7.8 threshold. Local interbank rates have stayed high since November, outstripping the income a trader can expect on U.S. dollars. That’s undermined the so-called carry trade, where traders sell Hong Kong dollars and buy greenbacks, which had been profitable for years. Equities in the city also rose.The Hong Kong dollar’s strength is also coinciding with year-end regulatory checks on banks that typically sees higher demand for cash. That may lock up funds, tighten liquidity and stoke local rates into the final days of 2019. The Federal Reserve on Wednesday left interest rates unchanged and signaled it would stay on hold through 2020, limiting the room for Hong Kong rates to fall even after the seasonal factors are out of the way.“A softer dollar, better yield differential, perhaps some easing off on the outflows may have contributed to the sharp move that we’ve seen,” said Khoon Goh, head of Asia research at Australia & New Zealand Banking Group Ltd. “After the Fed policy decision overnight, the dollar is staying softer.”The Hong Kong Monetary Authority said Thursday that foreign-exchange and money markets continue to operate smoothly and that the exchange rate remains stable.One-month interbank funding costs for the currency, known as Hibor, have been higher than comparable rates on the greenback for 24 straight sessions as of Tuesday -- the longest stretch in four years. That means investors who had profited by borrowing the Hong Kong dollar cheaply and selling it against higher-yielding currencies since 2017 now may have to shift their strategy.The Hong Kong dollar Hibor climbed above the greenback’s funding costs, known as Libor, last month, and has remained elevated. The premium briefly reached the highest since the 1990s. That came as large share sales in the city drained liquidity and six months of political unrest stoked concern about capital outflows.Before mid-2019, Hibor had been lower than Libor for most of the past few years. The short Hong Kong dollar trade became so popular that the currency was repeatedly pushed to the weak end of its trading band against the greenback, prompting the local de facto central bank to intervene.The Hong Kong dollar will likely return to the weak half of the band as year-end effects fade, said Eddie Cheung, an emerging markets strategist at Credit Agricole CIB.“That’s because we currently don’t have major drivers for strong inflows, the city’s economy will face significant pressures in the first half and the medium to long-term prospects on the trade war aren’t great,” he said.The Hong Kong dollar pared its gain to trade at 7.8061 as of 3:43 p.m. local time. A gauge measuring the demand for bearish options on the currency over bullish wagers tumbled the most since early 2015. In stocks, the benchmark Hang Seng Index added 1.4%, set for the highest close since Nov. 19.\--With assistance from Livia Yap.To contact the reporters on this story: Tian Chen in Hong Kong at tchen259@bloomberg.net;Claire Che in Beijing at yche16@bloomberg.netTo contact the editors responsible for this story: Sofia Horta e Costa at shortaecosta@bloomberg.net, Philip Glamann, Christopher AnsteyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Bloomberg
Stocks Rise, Dollar Falls on ‘Accommodative’ Fed: Markets Wrap
(Bloomberg) -- U.S. stocks rose with Treasuries, while the dollar fell after the Federal Reserve left interest rates unchanged and its chairman signaled it would keep policy “somewhat accommodative.”The S&P 500 halted a two-day slide as investors viewed the last Fed decision of the year as dovish because the central bank signaled rate hikes are unlikely unless there is a meaningful change in the outlook for the economy. The 10-year Treasury rate fell below 1.8%.The Fed, in its first unanimous vote since May, said it will continue to monitor the implications of data for the economic outlook “including global developments and muted inflation pressures.”“It’s ‘steady as she goes’ from the Fed today,” said Jason Pride, chief investment officer of private wealth at Glenmede Trust. “This accommodative stance should provide a measure of support for risk assets heading into the new year.”Equity gains had been muted throughout the session as investors kept an eye out for trade headlines. The Dow Jones Industrial Average was little changed amid more trouble for Boeing Co.’s Max plane and Home Depot Inc.‘s weak forecast. Crude slipped after U.S. inventory data.With the world’s top two economies still wrangling over an interim deal, Thursday may bring news as Trump is expected to meet with his trade team, according to people familiar with the talks.Here are some other key events to watch:Brazil’s central bank also decides on interest rate.The next European Central Bank policy meeting is on Thursday.The U.K. holds a general election Thursday.And these are the main market moves:\--With assistance from Claire Ballentine.To contact the reporters on this story: Sarah Ponczek in New York at sponczek2@bloomberg.net;Vildana Hajric in New York at vhajric1@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave LiedtkaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- FX Empire
Asian Shares Mostly Higher as Investors Await Fed Policy Decisions; Tariffs Worries Continue
Perhaps capping stock market gains are comments from White House Economic advisor Larry Kudlow, who on Tuesday downplayed reports of a tariff delay, noting the Trump Administration could still move forward with new levies targeting Chinese goods.
- South China Morning Post
Hong Kong market dips while China stocks eke out small gains, as investors remain in 'observation mode'
Hong Kong stocks dipped while China-listed shares edged up, amid another day of cautious trading on Tuesday as China and the US continue working on an initial trade deal.The Hang Seng Index dropped 0.2 per cent to 26,436.62. In China, markets reversed early losses and eked out small gains by the close. The Shanghai Composite Index ended 0.1 per cent, or 2.84 points, higher at 2,917.32. The Shenzhen Component Index added 0.4 per cent, while the ChiNext Index rose 0.8 per cent."Pretty much everyone is in observation mode right now," said Kevin Leung, executive director of investment strategy at Haitong International Securities. If the US pulls back scheduled tariffs on Chinese imports on Sunday, the Hang Seng Index stands a chance of rising above the 27,000-point level by the end of this year, he said."The market has priced in all the negatives, but at the same time I can't see anything substantially positive that could support a rebound," he added.In Hong Kong, sportswear makers declined broadly, in what is likely to be a result of investors taking profits at year-end, Jefferies analysts led by John Chou said in a report on Tuesday. Retail sales at a selection of shopping malls across China reflect strong momentum this month, continuing from November, they said.Li Ning tumbled 6.3 per cent to HK$23.8, Anta Sports dropped 4.3 per cent to HK$70.75 and Xtep International Holdings weakened by 2 per cent to HK$3.85.The Hong Kong-listed shares of Alibaba Group Holding, which owns the South China Morning Post, recorded a second day of losses, following their inclusion in the Hang Seng Composite Index on Monday. The stock fell 0.6 per cent to HK$195.4, after declining 0.5 per cent on Monday.On the mainland, the Postal Savings Bank of China, the country's biggest initial public offering since 2010, closed with a slight gain of 2 per cent at 5.61 yuan. While new stocks typically soar on their first day of trading in China, investors have been more cautious of late. Moreover, the listing has been met with suspicion about its valuation levels, and growing distrust in China's banking industry, which has been hit by several unexpected bailouts.In addition, pig farmers weakened after a surge in pork prices accelerated China's consumer inflation in November, as revealed by the consumer price index released on Tuesday.Muyuan Foodstuff, one of the largest pork producers in China, fell by 5.3 per cent to 84 yuan, as investors took profits on a strong rally this year amid worries over its future output. An outbreak of African swine flu has swept across China and sent pork prices soaring. The company's shares have gained 193 per cent so far this year.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
- Financial Times
US stocks slip as investors debate tariff deadline
US stocks closed slightly lower, marking a cautious response to media reports Washington and Beijing had signalled a Sunday deadline for the imposition of new round of tariffs on Chinese imports could be extended. Trade negotiators from the US and China have indicated in recent days that December 15 is not necessarily the final date for duties to increase on $165bn of imports if a so-called “phase one” deal is not reached beforehand, the Wall Street Journal reported about an hour out from Wall Street’s opening bell on Tuesday.
- FX Empire
Asian Shares Lower as Surge in Chinese Consumer Inflation Rattles Investors
China’s consumer inflation climbed to nearly eight-year peaks in November as pork prices doubled, but factory-gate prices remained in the red, adding to uncertainty over whether the manufacturing sector is bottoming out as trade risks persist.
- FX Empire
Asian Shares Rise on Robust U.S. Jobs Data, China Worries Cap Gains
China’s exports in November shrank for the fourth consecutive month, underscoring persistent pressures on manufacturers from the Sino-U.S. trade war but growth in imports may be a sign that Beijing’s stimulus steps are helping to stoke demand. Top White House economic adviser Larry Kudlow said on Friday that a December 15 deadline is still in place to impose a new round of U.S. tariffs on some $156 billion of China’s remaining exports to the United States.
- FX Empire
Asia Pacific Weekly Stock Indexes: Australia Dips on Trade War Fears, Japan Boosted by New Stimulus Measures
Stocks in major Asian markets saw gains on the first trading day of December as Chinese factory activity presented a positive surprise in November.
- TheStreet.com
Watch These 2 Transport Stocks With Hong Kong Set to Rally
Is the Hong Kong market poised to jump 40%? Its happened before. Transport stocks have suffered more than any due to the city's disruption, and would lead that charge.
- South China Morning Post
Victor Fung feted for lifetime of achievements at top of honours list in 2019 DHL-SCMP Hong Kong Business Awards
Victor Fung, a tireless advocate of globalisation and head of the world's largest supply chain manager, has been honoured for a lifetime of corporate achievements at the 2019 DHL-SCMP Hong Kong Business Awards.Fung, the chairman of the Fung Group, is the seventh person to receive the Lifetime Achievement Award in the 30-year history of the awards. Previous winners included Hong Kong's wealthiest man Li Ka-shing (2010), Lee Man Tat of Lee Kum Kee (2018) and L.T. Lam (2017), the creator of the iconic yellow rubber duck that marks Hong Kong's development into a global toy manufacturing powerhouse.The awards, jointly organised by DHL and the South China Morning Post, have been celebrating exceptional contributions by Hong Kong's business owners and corporate executives since 1989, doubling from their original four prizes to eight categories including start-ups, small and medium enterprises, and lifetime achievement."Since the awards were launched 30 years ago, the city's business landscape has undergone vast changes," said Ng Chee Choong, managing director of DHL Express Hong Kong and Macau. "But all the while, these awards have served as a symbol of recognition for the individual companies that have weathered through the adversity and made Hong Kong what it is today."Judges of the 2019 DHL-SCMP Hong Kong Business Awards. alt=Judges of the 2019 DHL-SCMP Hong Kong Business Awards.The judges of the peer-evaluated awards comprise winners of each category from the previous year and nine representatives of the business community including one each from DHL and the Post."The Hong Kong Business Awards has been a hallmark of the city's unrelenting entrepreneurial spirit and dedication towards commercial excellence, " said Gary Liu, CEO of the Post. "We are pleased to recognise and honour this year's trailblazers who have shown unparalleled commitment towards the pursuit of excellence. They've exhibited the foresight, creativity and courage necessary for innovation, and we look forward to building a better future for Hong Kong businesses for years to come."Charles Li Xiaojia, the chief executive of Hong Kong Exchanges and Clearing Limited (HKEX), was voted the Businessperson of the Year, for his stewardship of Asia's third-largest financial marketplace, which is poised to regain the coveted crown as the world's top destination for initial public offerings (IPOs) for the eighth time in 11 years.Fred Lam, chief executive of the Airport Authority of Hong Kong who oversaw a 30 per cent growth in annual revenue over five years and steered the airfield through a siege by anti-government protesters in August, was honoured with the Executive Award.Winners of the 2018 DHL-SCMP Hong Kong Business Awards, at the awards gala dinner on 6 December 2018. (Left to right): Danny Yeung, Xu Jieyun, Simon Suen, Lee Man Tat, Herbert Vongpusanachai, Dr. Simon Kwok Siu-ming, Gary Liu, Amy Lo, Kitty Fung, Dah Chong and Yat Siu.Photo: Xiaomei Chen alt=Winners of the 2018 DHL-SCMP Hong Kong Business Awards, at the awards gala dinner on 6 December 2018. (Left to right): Danny Yeung, Xu Jieyun, Simon Suen, Lee Man Tat, Herbert Vongpusanachai, Dr. Simon Kwok Siu-ming, Gary Liu, Amy Lo, Kitty Fung, Dah Chong and Yat Siu.Photo: Xiaomei ChenHui Kuok, chairwoman of the Shangri-La Group, won the International Award for helping to enhance Hong Kong's global reputation by successfully developing and penetrating new markets overseas. The hotel group's inventory of 40,000 rooms spans more than 100 hotels and resorts in the Asia-Pacific, North America, the Middle East and Europe. Kwok was formerly chief executive officer of SCMP Group Limited until Alibaba Group Holding acquired this newspaper in 2016.Lee Yin Yee, chairman of Xinyi Glass Holdings Limited won the Enterprise Award for its innovation of new products and the penetration of new markets. The glass producer, listed on the Hong Kong stock market since 2005, posted a record net profit last year, with its profit margin widening to 26.5 per cent.Pony Ma, founder and chairman of Tencent Holdings, was honoured with the China Company Award. Based in southern China's technology hub Shenzhen, Tencent is best known as China's biggest publisher of mobile games and operator of the nation's ubiquitous WeChat social network. The company, with the second-biggest weighting on Hong Kong's benchmark Hang Seng Index, is valued at HK$3.15 trillion (US$402 billion), and is often cited as one of China's technology champions along with Alibaba.Nicholas Ho, deputy managing director of Ho & Partners Architects Engineers and Development Consultants Limited was the SME Award winner, a category that honours small and medium enterprises (SMEs) in Hong Kong. Together, SMEs employ 1.3 million people, or half of the city's workforce, excluding the civil service, making this the backbone of Hong Kong's economy.Ricky Chiu Yin To, chairman of Phase Scientific International Limited won the Start-up Award, a category added in 2018 to nurture new businesses. Founded by scientists from the University of California, Los Angeles (UCLA), Phase is a biotechnology start-up that develops diagnostic tools for managing health risks.The awards honour exceptional leadership at a particularly tumultuous moment for Hong Kong, as the worst political crisis in the city's history and a year-long US-China trade war combined to drive the local economy into its first technical recession in a decade.A black-tie gala dinner, during which the annual awards are announced and handed out, will be postponed this year "out of concern for the safety of our guests, winners and judges and the accessibility of the venue to attendees," said Tony Turner, the Asia Chairman of Racepoint Global, which organises the annual awards.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
- South China Morning Post
Hang Seng Index gains as investors bet US-China trade deal will come through
Happy Friday, traders!Trade drove sentiment today, with Hong Kong and China stocks rising on optimism the US and China will strike a deal.Catch up on the day's action below.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
- FX Empire
Asian Shares Firm Ahead of US NFP Report; Japan Household Spending Disappoints
The Wall Street Journal reported Thursday that Washington and Beijing are still in disagreement over the size of China’s agricultural purchases. Meanwhile, China has given little indication on how negotiations with the U.S. are progressing.
- South China Morning Post
Hang Seng Index gains on report US and China are close to phase-one trade deal
Good day, traders --Well, more twists and turns in the US-China trade deal story.Bloomberg, citing unnamed sources, reports that the two sides are moving closer to a phase-one deal despite tensions over Hong Kong and Xinjiang. December 15 is when the next set of US tariffs are scheduled to begin.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
- Reuters
GLOBAL MARKETS-Asian stocks climb as trade deal hopes flicker among Trump's mixed signals
TOKYO/HONG KONG, Dec 5 (Reuters) - Stock markets in Asia inched up on Thursday on the possibility that China and the United States may soon seal a "phase one" deal to end their 17-month trade war, but conflicting messages from U.S. President Donald Trump kept a lid on the advance. European shares are set to follow with a slightly firmer open, with the pan-regional Euro Stoxx 50 futures and London's FTSE futures rising 0.1% in early trade.
- Financial Times
Alibaba’s debut in Hong Kong signals change in Beijing’s mindset
in local elections, dislodging their pro-Beijing rivals and delivering a decisive thumbs down to the city’s chief executive Carrie Lam and China’s President Xi Jinping. The elections followed almost six months of anti-government protests in the Asian finance hub that have left the city’s Hang Seng index up just 0.8 per cent this year, versus a nearly 28 per cent rise for China’s CSI 300.
- Financial Times
Wall Street banks bet on rebound in battered Hong Kong stocks
A number of leading Wall Street banks are advising clients to make heavy bets on Hong Kong stocks, urging them to look again at a market that has been hammered by months of political tumult. On Wednesday, the IMF predicted Hong Kong’s economy would contract 1.2 per cent this year and grow just 1 per cent in 2020 in comparison with a 3 per cent expansion in 2018. Companies listed in the index derive much of their revenue from mainland China, meaning they would benefit from a “phase one” trade deal between the Washington and Beijing.
- Bloomberg
Alibaba’s Hong Kong Rally Is At Risk From Three Misconceptions
(Bloomberg) -- Alibaba Group Holding Ltd.’s landmark $11 billion share sale and listing in Hong Kong on Nov. 26 was galvanized by expectations the Chinese e-commerce giant will attract a vast pool of capital from its home country. But some investors caution against unrealistic expectations, especially by mainland investors, and highlight certain restrictions that still govern -- and potentially curtail -- trading activity in Alibaba’s Hong Kong shares.The company’s sheer size and the unprecedented nature of its secondary listing (the primary listing is still in New York) and unique management structure present challenges for investors hoping to gauge everything from Alibaba’s inclusion in indexes -- crucial because they direct the flow of capital from tracker funds -- to its listing status.Here’s what we know.1\. Will Alibaba get added to the Hang Seng Index?Not right now. Alibaba will be added to Hang Seng Composite Index on Dec. 9, but it isn’t qualified to join the benchmark Hang Seng Index or the Hang Seng China Enterprise Index because they comprise only primary listings and corporations without so-called weighted voting rights (WVR).Membership of the 50-member Hang Seng is coveted by corporations because it could trigger billions of dollars of inflows from funds tracking the 50-year-old gauge. Hang Seng Indexes Co. plans a consultation in the first quarter to discuss issues including whether firms with weighted voting rights, like Alibaba, should be eligible for the HSI. Any conclusions should be published by May, Daniel Wong, its head of research and analytics, said in a statement. Even if the index compiler decides to overhaul its rules, the required process means it may not be until late 2020 before Alibaba could join the major Hang Seng benchmarks.Representatives for HKEx and Alibaba declined to comment.Read more: Why Now, and Why Hong Kong, for Alibaba’s Share Sale?: QuickTake2\. Will Alibaba be included in the stock connect program?Maybe, but a lot hinges on policy makers. China doesn’t spell out criteria or qualifications for joining the program, which allows mainland investors to buy stocks listed in Hong Kong. Unlike the HSI, the program isn’t limited to primary listings. It does require review by the China Securities Regulatory Commission, the stock market watchdog.The first companies in stock connect with weighted voting rights were Meituan Dianping and Xiaomi Corp., which mainland investors got access to in late October through the program. That’s after similarly structured Chinese firms started listing in July on Shanghai’s new tech-focused Star board. Many investors expect Beijing to ultimately allow Alibaba’s Hong Kong shares to trade through the stock link with the city as well.But it may not necessarily be in China’s best interest to do so. That’s because other U.S.-listed Chinese firms -- among the country’s largest corporations, from JD.com Inc. to Baidu Inc. -- may be encouraged to follow in Alibaba’s footsteps and conduct their own secondary listings in Hong Kong, bypassing the Shanghai or Shenzhen bourses. That may run counter to Beijing’s longstanding ambitions of developing healthy, vibrant mainland exchanges, particularly as unrest grips Hong Kong.3\. Can Alibaba change its primary listing to Hong Kong?It’s possible -- thereby attracting investors with a preference for main listings, and at the same time scoring brownie points with some in Beijing who could view that as supporting China’s policy ambitions. Alibaba was given the green light to list in Hong Kong based on a new “Secondary Listing” rule, or Chapter 19C. It allows companies to conduct follow-on share offerings without complying with more stringent rules laid down by Hong Kong Exchanges & Clearing Ltd. governing first-time listees.Alibaba may enjoy special status in having more freedom to comply with Hong Kong listing requirements. Under rules laid out in a consultation paper in April last year, Chinese firms that went public before Dec. 15, 2017 don’t need to comply with “WVR” safeguards if they later switch their primary listing to Hong Kong. Alibaba, which debuted in New York in 2014, said in its Hong Kong listing prospectus it’s a “WVR” company similar to Meituan and Xiaomi.Meanwhile, Alibaba employs a fairly unique structure in which a group of partners have the right to nominate a majority of the firm’s board -- exerting outsized influence on Alibaba’s direction.In addition, Hong Kong listing rules say if trading volume there exceeds 55% of global turnover over an entire fiscal year, the stock has to adopt primary listing status in Hong Kong. HKEx gives such Chinese companies a year to comply. But with Hong Kong’s stock registration office listing just 23% of outstanding Alibaba shares as of Nov. 28, a majority of trading volume occurring there may be a tall order.\--With assistance from Paul Geitner and Fox Hu.To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Edwin Chan, Kevin KingsburyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- South China Morning Post
Hang Seng Index falls on worries about US-China trade deal
Good day, traders --Hong Kong stocks slipped on growing concerns the trade deal may be delayed over US-China tensions. Meanwhile, China stocks gained.Check out the day's action below.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.
