|Bid||10.400 x 0|
|Ask||10.420 x 0|
|Day's Range||10.300 - 10.700|
|52 Week Range||9.270 - 14.140|
|Beta (3Y Monthly)||0.72|
|PE Ratio (TTM)||17.48|
|Forward Dividend & Yield||0.38 (3.56%)|
|1y Target Est||14.01|
(Bloomberg Opinion) -- It’s hard not to see HSBC Holdings Plc’s exclusion from China’s interest-rate reform as a snub.Hong Kong’s biggest bank wasn’t included in a list of 18 lenders that will participate in pricing for a new loan prime rate that the People’s Bank of China will start releasing Tuesday. The roster includes foreign lenders Standard Chartered Plc and Citigroup Inc., which have smaller China businesses than HSBC.It’s the latest sign that all may not be well in HSBC’s relations with Beijing, after a turbulent period that has seen the departures this month of Chief Executive Officer John Flint and the bank’s Greater China head, Helen Wong. HSBC shares fell 13% in Hong Kong this year through last Friday, compared with a decline of less than 1% in the benchmark Hang Seng Index.London-based HSBC, which is also Europe’s biggest bank, has made China a key plank of its growth strategy. The lender is the third-largest corporate bank in the country by market penetration, according to data provider Greenwich Associates LLC. That places it ahead even of China Construction Bank Corp. and Agricultural Bank of China Ltd., two of the nation’s big four state-owned lenders. Standard Chartered and Citigroup don’t rank among the top five, according Gaurav Arora, head of Asia Pacific at Greenwich.It could be argued that HSBC’s focus on big corporate clients means it’s less attuned to the loan market for small and medium-size enterprises that are the focus of China’s changes to its interest-rate regime. That would be a stretch, though. Corporate banking is a scale game. And even though StanChart may have a greater preponderance of smaller clients, HSBC surely has many similar customers. Citigroup’s inclusion makes more sense: It’s the only U.S. bank in China with a consumer-lending business that spans credit cards to SME loans. The list also includes less influential domestic lenders such as Bank of Xian Co. Those searching for reasons why HSBC may have fallen into China’s bad books may point to Huawei Technologies Co. Liu Xiaoming, China’s ambassador to the U.K., summoned Flint to the embassy earlier this year to interrogate him over the bank’s role in the arrest and prosecution of Meng Wanzhou, the chief financial officer of Huawei, the Financial Times reported Monday. The then-CEO told him HSBC had no option but to turn over information that helped U.S. prosecutors build a case against Meng, the FT said. On Aug. 9, an HSBC spokeswoman denied that Wong’s departure as Greater China head was linked to any issue involving Huawei, pointing out that she announced her resignation before Flint’s departure. Still, the bank has faced criticism in China’s state-owned media over its role in the case. The way HSBC helped the U.S. Department of Justice acquire documents concerning Huawei was unethical, the Global Times reported previously, citing a source close to the matter. The bank was likely to be included in China’s first “unreliable entity” list of companies that have jeopardized the interests of Chinese firms, it said.The timing of China’s interest-rate snub won’t do anything to quell jitters, coming a day after Cathay Pacific Airways Ltd. CEO Rupert Hogg resigned amid criticism from Chinese regulators over its stance on employee participation in Hong Kong’s protests. Beijing is becoming more muscular in its attitude to the city’s unrest and foreign-owned businesses aren’t being spared. In an increasingly politicized environment, even a business that’s been around for 154 years will have to tread carefully. To contact the author of this story: Nisha Gopalan at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
HONG KONG/SINGAPORE (Reuters) - Cathay Pacific Ltd needs to focus on safety and security, its customers and the completion of a three-year financial turnaround plan, the airline's new chief executive told staff on Monday. Augustus Tang took the top job at the airline following the sudden exit of Rupert Hogg on Friday amid mounting Chinese scrutiny over the involvement of some of the Hong Kong carrier's staff in anti-government protests in Hong Kong. Hogg's departure highlights growing pressure on the corporate sector in the Chinese-controlled former British colony, where Beijing is trying to quell protests that have gone on for 11 straight weeks.
Investing.com - Asian markets rose in morning trade on Monday. Shares of Hong Kong-listed Cathay Pacific fell as the company’s CEO resigned amid controversy surrounding the Hong Kong protest.
Hong Kong braced for a major anti-government rally planned for Sunday after an unusually calm Saturday night in what has been a summer of violent protests in the Asian financial hub. Demonstrations have lost some intensity since the ugly scenes witnessed during the protesters' occupation of the city's airport earlier in the past week, and Sunday's rally could show whether the movement still has broad-based support. No tear gas was fired on Saturday night during a brief standoff between police and protesters outside a police station in the Mong Kok district - which was noteworthy after the increasingly violent confrontations in the last 11 weeks.
Rupert Hogg, CEO of airline Cathay Pacific (HKEX: 00293) has resigned from his positions as CEO and executive director with effect from Monday August 19. Paul Loo, Chief Customer and Commercial Officer and executive director, has also resigned his positions with effect from Monday August 19. The company has said, in a release to the Hong Kong Stock Exchange, that both men are not aware of any matter relating to their resignation that needs to be brought to the attention of the shareholders of the company.
The decision to replace chief executive Rupert Hogg followed an accusation from Beijing’s aviation regulator that Cathay was putting flight safety at risk after several of the airline’s employees allegedly participated in the protest movement. In an unprecedented development for a Hong Kong private sector company, the management change was first revealed by mainland Chinese state-run media rather than Cathay.
HONG KONG/SINGAPORE (Reuters) - Cathay Pacific Airways CEO Rupert Hogg resigned in a shock move on Friday, amid mounting Chinese regulatory scrutiny of the Hong Kong carrier over the involvement of its employees in the city's anti-government protests. The sudden departure signals growing pressure on the corporate sector in the Chinese-controlled former British colony, home to multinationals such as HSBC Holdings and Jardine Matheson Holdings, to support Beijing. Cathay Pacific, which has already terminated two pilots for engaging in illegal protests at the behest of the Chinese aviation regulator, named Augustus Tang as its new CEO.
HONG KONG/SINGAPORE Aug 16 (Reuters) - Cathay Pacific Airways CEO Rupert Hogg resigned in a shock move on Friday, amid mounting Chinese regulatory scrutiny of the Hong Kong carrier over the involvement of its employees in the city's anti-government protests. The sudden departure signals growing pressure on the corporate sector in the Chinese-controlled former British colony, home to multinationals such as HSBC Holdings and Jardine Matheson Holdings, to support Beijing.
The boss of Hong Kong carrier Cathay Pacific Airways quit on Friday, the highest-profile corporate casualty of unrest roiling the former British colony, after Beijing targeted the airline over staff involvement in mass protests. Demonstrators say they are fighting the erosion of the "one country, two systems" arrangement that has enshrined some autonomy for Hong Kong since China took it back from Britain in 1997. Several thousand protesters gathered peacefully at a downtown park on Friday for the "Stand with Hong Kong, Power to the People" rally, which had received police permission.
The CEO of Cathay Pacific Airways has resigned following pressure by Beijing on the Hong Kong carrier over participation by some of its employees in anti-government protests.
(Bloomberg) -- It’s turning into a struggle of wills between bears betting against Hong Kong equities and mainland Chinese investors.Short selling volume on Hong Kong’s main board climbed to 17% of total turnover this week, the highest proportion since at least 1998, based on a five-day moving average. That’s not deterred mainland investors, who were net buyers of Hong Kong stocks via exchange links for the 21st day on Friday.So far bears have been winning. The benchmark Hang Seng Index has tumbled by about 15% from its April high to be among the world’s worst performers, while selling momentum this week was the strongest since China’s currency devaluation four years ago. Mainland buyers are seeing some success though -- the gauge has rebounded 1.8% in the three days through Friday.To be sure, previous surges in the short selling ratio haven’t been a great indicator for future moves. Back in 2016, a spike was followed by an almost 70% rally. But the pessimistic case for Hong Kong shares is easy to sketch.The city is facing one of its worst crises in decades as increasingly violent protests mar its image as a safe and easy place to do business and shop. There is now serious debate about whether Beijing will use military measures to quell the protests after stationing troops in a stadium across the border.Companies are falling foul of the newly politicized environment. Cathay Pacific Airways Ltd. shares plunged after being singled out by Chinese entities for not sufficiently punishing employees sympathetic to the demonstrators. The airline, which has since fired staff who’d been suspended in relation to the protests, announced Friday that Chief Executive Officer Rupert Hogg had resigned "to take responsibility as a leader of the company in view of recent events."The trade war with the U.S. is also hurting the local economy, as well as damping demand for Chinese companies listed in Hong Kong. A weak yuan is adding further pressure.Mainland investors have kept the faith, however, purchasing a net $5.8 billion of Hong Kong stocks in the past 21 sessions, the longest run of inflows since February 2018. They bought the most in nearly 18 months on Friday.To contact the reporter on this story: Jeanny Yu in Hong Kong at email@example.comTo contact the editors responsible for this story: Sofia Horta e Costa at firstname.lastname@example.org, David Watkins, Magdalene FungFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Cathay Pacific CEO Rupert Hogg and another senior executive resign following accusations they didn't do enough to stop workers from participating in the pro-democracy demonstrations that have gripped the city-state over the past 10 weeks-- including a massive protest that shuttered Hong Kong's airport last weekend.
(Bloomberg) -- Hong Kong travelers to China are being asked to unlock their smartphones so Chinese agents can examine chat messages and social media, the latest move by authorities to prevent the financial hub’s months-long protests from spreading.One fund manager said he was told to unlock his phone this week at the Shenzhen border, after which officials inspected his Whatsapp and WeChat apps, as well as his photos. The agents asked how the fund manager had obtained pictures of the protests and why he had stored them, and took down information from group discussions about the demonstrations, said the person, who declined to be named.The phone checks add to signs that Beijing is stepping up efforts to control the flow of information on the protests amid fears it could inspire similar unrest in China or embolden pro-independence forces in Taiwan. Domestic media coverage has been tightly controlled, and many cities are keeping a closer eye on citizens traveling to the former British colony.Another Hong Kong student said a border security official went through the photos on his phone when he visited mainland China on Sunday. He said many of the people whose phones were searched appeared to be under 40 years old.The South China Morning Post earlier reported that 10 people said their phones had been checked while they were crossing into mainland China from Hong Kong.Phone calls to China’s Hong Kong and Macau Affairs Office were not answered. The National Immigration Administration and the Shenzhen-based agency handling border inspections do not provide contact information on their websites.Officials at all Chinese ports of entry were told to proactively check the phones of suspicious-looking individuals entering from Hong Kong and delete pictures related to the protests, a person familiar with the directive said.New devicesBankers who travel frequently between Hong Kong and mainland China are swapping their personal phones and laptops for new devices or ones that have been wiped clean, according to three financial professionals in the city, who asked not to be named because of the security risk.One of the bankers said she left her personal mobile phone containing images of the protests at home and took an old iPhone on a recent trip to Shenzhen. She also refrained from packing any outfits in black, the color worn by the protesters, while her colleague deleted Whatsapp from their phone before crossing the border.Multiple Chinese cities this month began barring travel agents and couriers from helping individuals apply for the permits that Chinese citizens need to travel to Hong Kong. People now have to appear in person so their identities can be verified.There are also indications China may be restricting travel from Hong Kong to the mainland. A group of Hong Kong students was told in July their application to enter the country as a tour group was denied because of the protests, a person familiar matter said.(Updates with more details of phones being checked.)\--With assistance from Ben Scent, Gao Yuan, Alfred Liu and Wendy Hu.To contact the reporters on this story: Lulu Yilun Chen in Hong Kong at email@example.com;Fion Li in Hong Kong at firstname.lastname@example.org;Steven Yang in Beijing at email@example.comTo contact the editors responsible for this story: Daniel Ten Kate at firstname.lastname@example.org, Sharon Chen, Sam MamudiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Lower fuel prices helped the territory’s flagship airline to a profit in the first half of the year, but the US-China trade war was having a knock-on effect on its cargo business, as was a fall in electronics exports. , Cathay reversed its position that it would not stop staff from joining the pro-democracy protests and by Wednesday, it had fired four employees and suspended a fifth for their alleged involvement.
(Bloomberg Opinion) -- After 10 weeks of silence, Hong Kong’s business elite have started voicing opposition to the city’s increasingly violent protests. The cracking in the facade of neutrality comes amid mounting damage to the Hong Kong economy and pressure from Beijing for public displays of loyalty. Being forced to take sides is unlikely to end happily for them.On Monday, property billionaire Peter Woo called on protesters to quit and wrote that some people were aiming to “purposely stir up trouble.” A day later, Sun Hung Kai Properties Ltd., the city’s biggest developer by market value, issued a statement condemning violent protests. Former Wheelock & Co. Chairman Woo, Sun Hung Kai Chairman Raymond Kwok and his brother Thomas Kwok are among Hong Kong’s 10 richest people, each worth more than $10 billion.The reticence of Hong Kong’s tycoons has been understandable. In normal circumstances, business can be expected to range on the side of the establishment and the forces of law and order. However, overwhelming public support for the protests triggered by a proposed extradition bill has forced them to consider the consequences of potentially alienating employees and customers in the city. Moreover, the business community itself expressed severe misgivings over a law that would have allowed people accused of a crime in China to be sent for trial in the mainland’s politically controlled legal system. Indeed, opposition from companies was an obvious factor in the government’s decision to suspend the bill, as we wrote in June.Threading that needle has now become close to impossible. As the weeks have stretched on and the protests have intensified, China’s central government has become increasingly alarmed. The State Council’s Hong Kong and Macau Affairs Office has staged three press conferences in the past month, having held none in the first 22 years after the former British colony returned to China.Beijing is now demanding order. On Aug. 7, the office called on Hong Kong’s elite to “have no fears and stand up” to protesters, urging them to safeguard the city’s stability and demonstrate “positive energy.” The following day, 17 real estate companies including Sun Hung Kai and Li Ka-shing’s CK Asset Holdings Ltd. released a statement saying Hong Kong had been suffering from “violence perpetrated by a small group of individuals” whose actions had “deviated from the original intent of the peaceful demonstrations and are bringing distress to the business community and the general public as a whole.” Woo is the most prominent businessman to have spoken out against the protests in his own name. With more than $7 billion of his wealth in Wheelock stock, he may be in a more precarious position than most. Subsidiary Wharf Real Estate Investment Co. put up signs at its Harbour City mall this month asking police not to enter unless a crime had been committed, after anti-government protesters threatened to disrupt business at the complex, the South China Morning Post reported. Harbour City and Wharf REIC’s Times Square between them account for 10% of Hong Kong’s retail sales, according to Bloomberg Intelligence analyst Patrick Wong. The company put up the signs after clashes between police and demonstrators last month at a shopping center in the suburban town of Sha Tin that prompted criticism of owner Sun Hung Kai. In that case, the developer denied protesters’ allegations that it invited police to enter the mall.Placating protesters comes with the risk of enraging China, though. For evidence of the costs of being insufficiently supportive, look no further than Cathay Pacific Airways Ltd. Last Friday, China’s civil aviation authority issued a warning to the airline for failing to take appropriate action against employees who took part in illegal protests and demanded a raft of changes, ordering the carrier to suspend all such staff from duty on flights to the mainland.That was just the start. At least two Chinese state-run companies told their employees not to fly on Cathay, and the investment-banking arm of the nation’s biggest lender cut the company’s stock to a “strong sell,” citing damage to its brand from the Hong Kong protests. Cathay shares fell to a 10-year low this week. On Tuesday, Cathay’s parent company Swire Pacific Ltd., said it “resolutely” supports the Hong Kong government and police in restoring law and order. The statement followed a visit by Chairman Merlin Swire to meet with China’s aviation regulators in Beijing on Monday.Expect more such declarations. Like Swire, which has bottling and property operations in China, Hong Kong’s real estate tycoons have major mainland businesses to protect. Wheelock, for example, gets about 38% of its revenue from the mainland.But beware the backlash at home. Hong Kong’s property billionaires hold huge sway over the economy, in a city where inequality has been exacerbated by the world’s least affordable home prices. If seen to be lining up behind forces that aim to perpetuate that system and reject all protesters’ demands – which include greater democracy – they may themselves become tempting targets for popular ire. It’s a no-win situation. To contact the author of this story: Nisha Gopalan at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Hong Kong’s airport authority has obtained an interim injunction to stop protests at the airport and restricted non-travellers from entering after a rally at the aviation hub on Tuesday night erupted into violent clashes with police. The anti-government demonstrations at the airport, which have run for six successive days, are the latest chapter in Hong Kong’s worst political crisis since the handover of the territory from the UK to China in 1997.
HONG KONG/BEIJING (Reuters) - Cathay Pacific Airways has terminated the employment of two pilots, the company said on Wednesday, after it suspended them in the past week over their involvement in protests in Hong Kong. "In response to media enquiries, Cathay Pacific confirms that two pilots have been terminated in accordance with the terms and conditions of their employment contracts," the Hong Kong-based airline said in an e-mailed statement. "One is currently involved in legal proceedings.
China said on Wednesday Hong Kong's protest movement had reached "near terrorism" and more street clashes followed ugly scenes the previous day when protesters set upon men they suspected of being government sympathisers. The United States said it was "deeply concerned" at news of Chinese paramilitary police movement near the border, urged Hong Kong's government to respect freedom of speech, and issued a travel advisory urging caution when visiting the city. By nightfall, police and protesters were again facing off on the streets, with riot officers shooting tear gas almost immediately as their response to demonstrators toughens.
Hong Kong's airport resumed operations on Wednesday, rescheduling hundreds of flights that had been disrupted over the past two days as protesters clashed with riot police in a deepening crisis in the Chinese-controlled city. Ten weeks of increasingly violent clashes between police and pro-democracy protesters, angered by a perceived erosion of freedoms, have plunged the Asian financial hub into its worst crisis since it reverted from British to Chinese rule in 1997. About 30 protesters remained at the airport early on Wednesday while workers scrubbed it clean of blood and debris from overnight.
Investing.com - Asian stocks rose in morning trade on Wednesday following U.S.’s decision to delay imposing tariffs on some Chinese goods.
Strategist at Everbright Sun Hung Kai expects Cathay Pacific will weather the storm it unexpectedly flew into when it got caught up in Hong Kong’s protests, but says investors should wait for the stock to fall again before buying.
Cathay Pacific is the leading airline in Hong Kong. Its CEO Rupert Hogg is resigning after a tumultuous week for the airline. Yahoo Finance's Julie Hyman, Adam Shapiro, Brian Cheung and Pras Subramanian discuss.