^HSI - HANG SENG INDEX
| Previous Close | 27,087.60 |
| Open | 27,154.51 |
| Volume | 0 |
| Day's Range | 27,074.54 - 27,366.45 |
| 52 Week Range | 24,540.63 - 30,280.12 |
| Avg. Volume | 1,588,762,503 |
- South China Morning Post
IPOs return to Hong Kong after slow summer, but trade war, protests could rain on market sentiment, experts say
After months of bruising protests in Hong Kong's streets and escalating tensions between two of the city's biggest trading partners, companies are starting to feel comfortable enough to return to Hong Kong's financial markets.Logistics real estate developer ESR Cayman and Anheuser-Busch InBev both announced plans this week to revive initial public offerings that were shelved over the summer amid weak investor sentiment.Home Credit, a consumer finance lender that counts China as its biggest market, has begun speaking with institutional investors in recent weeks ahead of its planned US$1 billion listing in Hong Kong later this year. It would be one of the biggest IPOs in Hong Kong this year.Those listings, if they perform well, could open the door for more IPOs in what has been an exceptionally slow summer for the Hong Kong stock exchange.But, the question remains how long the window will remain open, particularly if the trade war between the United States and China reignites, investment strategists and market observers said."There's an improving window of opportunity in terms of investor sentiment and appetite, which I think companies will seek to take advantage of," said John Woods, Credit Suisse's chief investment officer for Asia-Pacific. "I suspect improving sentiment could extend beyond a short term 'window' and could actually shape risk appetite for the duration of the year. If that is indeed the case, I think we could see more IPOs in the coming months".Credit Suisse said on Thursday that was shifting to an overweight equity in its portfolios as trade relations appeared to thaw somewhat between the world's two biggest economies and political tensions eased in Europe. Trade war, economic gloom 'making Asian investors more cautious'The US and China have been locked in a trade war for more than a year, with Washington and Beijing placing tariffs of up to 25 per cent on hundred of billions of dollars of each other's products.But US President Donald Trump said on Thursday that he would delay a tariff increase set for October 1 by two weeks as a "gesture of good will" as the People's Republic of China celebrates the 70th anniversary of its founding. China responded on Friday by saying it would exclude imports of US soybeans, pork and other agricultural goods from additional tariffs. The countries say they will resume face-to-face negotiations next month." Donald J. Trump (@realDonaldTrump) September 12, 2019Through Friday, the value of IPO proceeds in Hong Kong fell 63 per cent to US$10.8 billion, compared with US$29.6 billion in the same period in 2018, according to data from financial information provider Refinitiv. The number of deals declined by 37 per cent to 89 transactions this year.At the same time, Hong Kong chief executive Carrie Lam Yuet-ngor formally withdrew a bill last week that would have made it easier to extradite criminal suspects to the mainland for trial. The bill sparked the protests and civil unrest that have disrupted transit and business in the city for more than three months. The protests have since evolved to broader issues, including income inequality and the affordability of housing in the city.Since news emerged the bill would be formally withdrawn, the benchmark Hang Seng Index has risen 7.9 per cent.Marcella Chow, global market strategist at J.P. Morgan Asset Management, said increased IPO activity would be "positive news" for the market, but equity values in Hong Kong still remain attractive to long-term investors."Hong Kong's equity market dynamics are largely driven by ongoing trade tensions, global growth worries and easing by key central banks," Chow said. "While the immediate Hong Kong situation remains unclear, long term investors should continue to focus on the intrinsic values of companies in Hong Kong and invest accordingly."The price-to-earnings ratio of the MSCI Hong Kong Index continues to trade at 13.7 times, below the 15-year average of 15.4 times, Chow said. The ratio indicates the dollar amount an investor can expect to invest in a company to receive a dollar of that company's earnings.Against the backdrop of the trade war and protests, Hong Kong's economy has weakened, with the city cutting its growth forecast to zero to 1 per cent for 2019. Several economists have said they expect the economy to contract this year."We expect growth to weaken materially in [the third and fourth quarter] on the back of local instability and escalated US-China trade tension," Bank of America economists Helen Qiao and Miao Ouyang, said in a recent research note. "In addition, even if business returns to normal level in the upcoming months, we are concerned that tourist arrivals and business confidence is likely to remain weak for a prolonged period."The number of tourists visiting the city dropped by 4.8 per cent in July as protests disrupts flights and transit in the city.Ringo Choi, Asia-Pacific IPO leader and a managing partner at EY, said if several of the proposed IPOs come back, including plans by Chinese e-commerce giant Alibaba Group Holding for a secondary listing in Hong Kong, it will be "very, very good for market sentiment" and help bolster the prospects for smaller companies that hope to list.Alibaba reportedly delayed its plan for a US$15 billion listing in Hong Kong last month. Alibaba is the parent company of the South China Morning Post."The general market sentiment is getting better over a short window," Choi said. "Some sectors are still better than others."But further negative news about the US-China situation could "heavily affect" sentiment, 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.
- Financial Times
Political crisis overshadows Hong Kong’s financial showcase
For the first time in CLSA’s 26 years of running the event — a vital mingling venue for Hong Kong’s financial elite — fund managers from companies representing a total of $30tn in assets flew in to find fires burning outside Tiffany’s and tear gas being fired near shoppers leaving the Sogo department store. Turnout for the investor conference was down 10 per cent from last year, organisers said. Do concerns over the rule of law and banners calling on US President Donald Trump to “liberate” Hong Kong compromise its status as a key financial centre?
- MarketWatch
Dow logs 7th gain in a row on renewed trade optimism, ECB stimulus
The Dow marks its longest win streak in more than a year Thursday, after the European Central Bank’s announced fresh stimulus measures.
- Investor's Business Daily
Dow Jones Today Turns Red After China Tariffs, ECB Stimulus Boost; Activision, Visa Stock Rise
Visa stock ran on the Dow Jones today, as LKQ and Activision lead as stock turn mixed early Thursday, despite a positive ECB vote and fresh trade war news.
- FX Empire
Asia Stocks Higher as Trump Delays Tariffs on China
Hong Kong Exchanges and Clearing Limited (HKEX) said Wednesday it had made a proposal to the board of London Stock Exchange Group Plc (LSE) to “combine the two companies,” in a deal which values the (LSE) at about 29.6 billion Pounds or $36.6 billion.
- Reuters
Cathay Pacific freezes new hiring, to focus on cost cuts: memo
Cathay Pacific Airways Ltd has put a freeze on new hiring, according to an internal memo seen by Reuters, as the airline battles a slump in demand from fliers avoiding Hong Kong amid massive anti-government protests in the city. In a memo to staff on Wednesday evening, new Chief Executive Augustus Tang said he had asked executives to examine spending and focus on cutting costs. The airline will also not replace departing employees in non-flying positions unless approved by a spending control committee, he said.
- Reuters
LSE board poised to decide fate of Hong Kong exchange's $39 billion offer
HONG KONG/LONDON/NEW YORK (Reuters) - The London Stock Exchange's board will meet in coming days to decide on the Hong Kong bourse's surprise $39 billion takeover proposal, a source close to the British company said on Thursday, as the market poured cold water on the deal. The unsolicited takeover offer is not expected to succeed given a preference among LSE investors for the exchange to complete its $27 billion proposed acquisition of data and analytics group Refinitiv, the source close to the LSE said. The exchange wants to focus on executing that deal, rather than risk it being derailed by the Hong Kong bourse, the source said.
- MarketWatch
Asian markets gain ahead of ECB meeting
Asian markets mostly gained in early trading Wednesday, ahead of expected further monetary easing by the European Central Bank.
- FX Empire
Apple Suppliers Trading Higher in Asia
On Tuesday, Apple revealed launch dates and pricing for its much-anticipated Apple TV and Apple Arcade subscription services. Both services cost $4.99 per month, which undercuts competitors like Disney’s streaming platform, Disney+, and Google’s cloud gaming service, Stadia.
- Bloomberg
Stocks Jump Late to Close Positive; Bonds Fall: Markets Wrap
(Bloomberg) -- U.S. stocks erased losses in the final moments of trading as investors continued to gravitate to value shares.Treasury yields rose for a fifth day.The Dow Jones Industrial Average closed positive, while the S&P 500 was little changed and the Nasdaq ended in negative territory. The Dow had briefly turned up midday following a report that China is ready to buy more U.S. agricultural products.“That’s the tug of war that’s going on right now,” said Matt Maley, an equity strategist at Miller Tabak & Co. “It’s between monetary policy and the trade war.”Areas of the market that were previously this year’s best performers fell the most. The opposite was true, too, with energy stocks gaining and small caps outperforming for a second day.“The rotation from growth to value started a couple of weeks ago, but was out-sized yesterday,” said Michael O’Rourke, JonesTrading’s chief market strategist. “That caught people offside so they need to de-risk more until the situation stabilizes.”The pound fluctuated as embattled British Prime Minister Boris Johnson insisted he won’t ask for another Brexit delay, while U.K. wage and unemployment data beat estimates. Most euro-zone sovereign bonds nudged lower as European Central Bank officials prepare to meet.The recent pullback in the bond rally “is a correction to an outsized move in yields during August, not a turn in the trend,” Kit Juckes, chief global FX strategist at Societe Generale SA, wrote in his daily note. “Last Friday’s U.S. labor market data show, clearly enough for me, that the U.S. economy is slowing slowly but steadily as the global trade slowdown infects it.”Investors are awaiting the ECB’s policy decisions on Thursday and those next week by the Federal Reserve and Bank of England as they assess how much monetary easing may be looming.Elsewhere, oil plunged after President Donald Trump fired one of his most hawkish advisers. Futures fell as much as 1% after Trump announced that National Security Advisor John Bolton was out.Here are some key events coming up this week:OPEC’s monthly oil market report, which includes demand forecasts and production estimates, is due Wednesday.The ECB policy meeting Thursday is widely expected to see a cut to interest rates and a review of all options, including QE. Policy makers will also publish forecasts for growth and inflation. ECB President Mario Draghi will hold a press conference.U.S. data for August is due on producer prices Wednesday, and CPI Thursday.These are the main moves in markets:\--With assistance from Lu Wang.To contact the reporters on this story: Vildana Hajric in New York at vhajric1@bloomberg.net;Sarah Ponczek in New York at sponczek2@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
Asia Pacific Markets Mixed; China Inflation Data Raises Policy Concerns
Rising CPI and falling PPI could raise a problem for policymakers since they are trying to stimulate the economy with lower interest rates. Lower rates could prop up the PPI, but they could also send the CPI higher, which could hurt the economy if it starts to run away from the benchmark.
- MarketWatch
Asian markets mixed as investors digest economic data ahead of central bank meetings
ASIA MARKETS Asian markets were mixed in early trading Tuesday, following a lackluster session on Wall Street. Investors continued to mull recent economic data while they away upcoming meetings by the U.
- Financial Times
Capital surges into Hong Kong stocks from the mainland
Chinese state media attacks have helped to send the shares in Hong Kong-listed companies tumbling in recent weeks, with criticism of the territory’s flag carrier Cathay Pacific even claiming the scalps of its chief executive and chairman. Since the start of the year, net purchases of Hong Kong stocks by mainland Chinese investors — made through stock connect programmes with bourses in Shanghai and Shenzhen — had climbed to almost HK$160bn ($20bn) by market close on Friday, close to double net inflows of HK$82.7bn for all of 2018. The buying frenzy also comes despite a dismal year for Hong Kong stocks.
- South China Morning Post
Index compiler MSCI buys Zurich-based climate research firm to evaluate global-warming risks for investors
MSCI, the global index compiler, said its subsidiary has agreed to buy out a climate analytics firm to help investors better understand the impact of climate change on their investments.Carbon Delta, a Zurich-based firm founded in 2015, will strengthen MSCI's modelling technology that analyses climate scenarios and evaluates physical risks, the New York-based index compiler said in a statement on Monday. A new metric, MSCI Climate Value-at-Risk, will be introduced to calculate the impact of climate change on a company's market value and highlight the relevant risks within a client's portfolio, it said."We believe climate change will become one of the most important investment factors over the long term. Institutional investors should be able to analyse the exposure of their portfolios to climate risk while also being able to report on their climate strategy," said Remy Briand, head of environment, social responsibility and governance (ESG) at MSCI. "We are pleased to come together with Carbon Delta to provide our clients with state-of-the-art climate risk analysis capabilities that can help shape investment management practices of the future."The acquisition of Carbon Delta, estimated at as much as US$5 million, will be completed next month and be funded by cash on the balance sheet, MSCI said in the statement. The Zurich office will serve as MSCI's centre for analysing climate risks in the future, developing partnership with academics and research firms across the world to further advance the use of climate science for financial risk analysis, it said.While ESG has become an increasingly important issue among investors who have been paying more attention to companies' performances beyond profits, Asia excluding Japan is lagging behind the US and Europe when it comes to "responsible" investing, according to a report by Global Sustainable Investment Alliance. The region had a total of US$52 billion in responsible investment in 2016, a tiny fraction of the US$12 trillion in Europe and US$8.7 trillion in the US, the report said. Chinese stocks at highest in almost a month as MSCI raises weightingIn Hong Kong, it has been mandatory for listed companies to make general disclosures about their ESG policies since 2015, when the local bourse upgraded its requirements from "recommended and voluntary" to "comply or explain".Companies must explain how they plan to deal with operational risks that have implications for the environment and society, and if they are in line with laws and regulations. This year, Hang Seng Indexes introduced two indices that track the ESG performances of the companies on the Hang Seng Index and the Hang Seng China Enterprises Index.The HSI ESG Index has risen 3.1 per cent this year, underperforming a 3.4 per cent gain on the Hang Seng Index. The MSCI World ESG Index has advanced 16 per cent in the period.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
Asia Pacific Stock Markets Supported by ‘Soft’ Risk On Theme
Chinese customs data showed the country’s exports unexpectedly fell in August, pointing to further weakness in the world’s second largest economy. Japan’s economy grew an annualized 1.3% in the April to June quarter, according to revised data from the Cabinet Office on Monday. That was lower than the initial estimate of a 1.8% expansion, but matched market expectations.
- Reuters
Home Credit to test Hong Kong IPO market as protests convulse city
Consumer lender Home Credit is poised to offer the biggest test of Hong Kong's capital markets since China's Alibaba delayed plans for a $15 billion listing last month because of the political turmoil engulfing the city. Hong Kong's markets have been weakened by frequently violent pro-democracy protests and political turmoil over the past three months, slashing a 12% gain for the year to June on the blue-chip Hang Seng Index to a 3% positive performance by Monday. Police fired tear gas and rubber bullets to disperse demonstrators in the Central business district and the upmarket Causeway Bay shopping district on Sunday, as the city endures its worst social unrest since its handover from British rule to China in 1997.
- MarketWatch
Dow, S&P 500 book 3rd day of gains, as stock market caps off solid week despite tepid jobs report
The Dow and S&P 500 book slight gains on Friday, but the Nasdaq slumped, after a jobs report for August showed a fewer-than-expected 130,000 new jobs were created in the month. All three benchmarks finished sharply higher for the week.
- South China Morning Post
Hong Kong Stock Exchange says its website was hacked while it halted derivatives trading to fix unrelated software bug
Hong Kong's stock exchange website was hacked yesterday, while the bourse had halted derivatives transactions to fix an unrelated software bug, as the operator faced a combination of technical outages at a time of heightened sensitivity about the city's role as Asia's third-largest financial marketplace.The open-access website of the Hong Kong Exchanges and Clearing Limited (HKEX) was subject to a distributed denial-of service attack (DDoS), where hackers overwhelmed the network with massive incoming traffic, which slowed down and disrupted its ability to display exchange prices and financial data, said the bourse's chief executive officer Charles Li Xiaojia.On the same day, a technical bug was found in a vendor's trading software for derivative financial products, which forced the exchange to suspend the trading of futures and options yesterday afternoon, Li said. Trading resumed today after the exchange returned to using an older version of the software without the bug, he said."We will continue to invest more to safeguard and improve" the information and technical infrastructure at the exchange, Li said at a press conference. "We hope the public has the confidence in the robustness of our system."Charles Li Xiaojia, Chief Executive of Hong Kong Exchanges and Clearing (HKEX), at the Hong Kong Exchanges and Clearing Market (HKEX) Annual General Meeting in Central on 24 April 2019. Photo: SCMP / Jonathan Wong alt=Charles Li Xiaojia, Chief Executive of Hong Kong Exchanges and Clearing (HKEX), at the Hong Kong Exchanges and Clearing Market (HKEX) Annual General Meeting in Central on 24 April 2019. Photo: SCMP / Jonathan WongTraders rushed back to the derivatives market today when transactions resumed, with 986,197 contracts, including 171,214 contracts on the Hang Seng Index futures, changing hands as of 6:30pm, in line with the daily average volume in August.Brokers had complained yesterday that they could not enter their orders into the exchange's derivatives trading platform, where financial products such as futures and options derived from underlying indexes and assets can be bought or sold. A total of 60,070 contracts were traded yesterday before trading was suspended.HKEX shares, which are themselves traded on the exchange, rose by as much as 3.1 per cent before closing 0.9 per cent higher at HK$249.40, recovering from yesterday's 1.9 per cent loss after derivatives trading was stopped.This wasn't the first time that hackers had taken aim at the HKEX's website. In August 2011, the HKEX website was subject to a similar DDoS attack, forcing the exchange to suspend trading seven stocks with HK$1.5 trillion in combined market value, including HSBC Holdings, the largest of the city's three currency note issuing banks. Shares of Hong Kong's hometown carrier Cathay Pacific Airways and the exchange itself were also halted then.Businessman Tse Man-lai, who was behind the 2011 cyberattack, was subsequently convicted and jailed for nine months. Li was grilled by Hong Kong's legislators for the security breach and the trading suspension. After the hacking attack, HKEX outlined a HK$2 billion budget to bolster its information technology platform and trading system.The HKEX should upgrade its cybersecurity defences, especially at a time when Hong Kong had witnessed three months of unprecedented civic unrest and public discord, said Christopher Cheung Wah-fung, a local legislator who represents the city's brokers."Amid the sensitive timing, any problem with the HKEX's trading systems or its website will create a lot of speculation and panic," said Cheung, the chairman of Christfund Securities who remembers the 2011 cyberattack. "The HKEX needs to safeguard its system to prevent any problem to happen again."SCMP Graphics alt=SCMP GraphicsYesterday's unprecedented suspension of derivatives trading - the first since 2000 - was unrelated to the cyberattack on the website, because the trading platform used was a closed system that is not readily accessible to the public."The derivative market suspension was related to a software bug. We switched to the backup system but there was also a software bug," Li said. "We had no choice but to suspend trading of all futures and options contracts from 2pm on Thursday. The trading has resumed to normal this morning after we return to use the version of the software without the bug."HKEX's derivatives exchange uses the Genium INET trading system developed by Nasdaq, first installed in Hong Kong in October 2013. The system was upgraded to Genium's new platform in May, with a two-week "stabilisation period" and a fallback plan in case of "irreparable incidents," according to the exchange's information. A Nasdaq spokesperson confirmed it was the third party vendor involved, and this was an isolated incident only. No other Nasdaq client was impacted.The combination of outages also raises questions about the HKEX's ambition to transform itself into a technology company specialising in automated systems and big data analysis, part of Li's three-year transformation programme to reimagine the bourse as a global financial marketplace.Altogether, the exchange has spent HK$3 billion on information technology over the past six years to upgrade the efficiency and security of its trading systems, Li said."Overseas markets such as the London Stock Exchange, Chicago Mercantile Exchange also experience technical problems, so HKEX is not alone in experiencing this technical problem," said Gordon Tsui Luen-on, chairman of the Hong Kong Securities Association. "There is concern of whether the HKEX is responding to market participants in a timely manner on software security issue, crisis management. Overall, such trading suspension may not greatly affect Hong Kong image, but more importantly, the execution of the contingency plan."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
HKEX blames software bug for outage as website comes under attack
Hong Kong’s stock exchange has blamed a software bug for disruptions that forced it to suspend operations of its derivatives market on Thursday, as the bourse’s website came under an apparently separate hacking attack on Friday. “HKEX confirms that the software issues in the vendor-supplied trading system that caused the market outage yesterday have now been isolated,” the company said in a statement after trading resumed on Friday morning.
- Financial Times
Best of Lex: your weekly round-up
In Hong Kong, civil rights protesters forced China’s local fixers to abandon plans for an extradition bill. In the UK, dissident MPs from the ruling Conservative party helped derail plans for a no-deal Brexit. Here, brave protesters are determined to preserve freedoms President Xi Jinping’s authoritarian China would like to take away.
- MarketWatch
Dow notches best day in 3 weeks on rising trade optimism, rosier economic data
U.S. stocks rally Thursday after American and Chinese officials declare a tentative resumption of tariff talks, viewed by Wall Street as a sign of progress in the yearlong trade conflict between the economic superpowers.
- Yahoo Finance Video
‘Full employment’ could be on the horizon as job gains slow
Rebecca Walser of Walser Wealth Management joins Yahoo Finance's YFi AM to discuss what's moving the markets on Monday morning. The panel tackles the latest on the trade war with China and Brexit, what to expect from the upcoming Federal Reserve meeting, and more.
- Yahoo Finance Video
U.S., China set to resume trade talks in October
The U.S. and China are heading back to the negotiation table in early October, aiming to get trade talks back on track. Yahoo Finance’s Brian Sozzi, Alexis Christoforous, and Jessica Smith break down the details.
