|Bid||31.30 x 0|
|Ask||31.31 x 0|
|Day's Range||31.15 - 33.33|
|52 Week Range||20.45 - 34.35|
|Beta (5Y Monthly)||1.22|
|PE Ratio (TTM)||26.42|
|Earnings Date||Aug 24, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Aug 02, 2019|
|1y Target Est||17.39|
Regulators in New Zealand filed a lawsuit on Tuesday against the local arm of Hong Kong-based foreign-exchange trader CLSA Premium, accusing the company of breaching anti-money-laundering and terrorism financing laws.The Financial Markets Authority (FMA) accused CLSA Premium New Zealand, formerly known as KVB Kunlun New Zealand, of failing to conduct sufficient customer due diligence, failing to report suspicious transactions and failing to keep required records on numerous occasions."The anti-money-laundering legislation is a cornerstone to protecting the integrity of New Zealand's financial system and it's imperative that financial services firms ensure they are compliant," Nick Kynoch, the FMA's general counsel, said in a press release. "CLSAP NZ needs to be held to account and our approach sends an important message of deterrence to the industry."CLSA Premium New Zealand did not respond to a request for comment. A person who answered the phone at the company's Hong Kong offices referred all inquiries to its Auckland office.The regulator said transactions at issue occurred between April 2015 and November 2018, and involved about NZ$50 million (US$32 million). The maximum penalty for each alleged breach is NZ$2 million, according to the FMA. DBS CEO Gupta warns of correction on market disconnect, IMF downgrade loomsThe FMA said it had filed its civil proceedings in the High Court in Auckland and was seeking monetary penalties and court costs. The court filing was not immediately available on Tuesday.CLSA Premium's majority owner is Citic Securities, which is also the parent company of brokerage and investment bank CLSA. The company is not directly affiliated with CLSA.Citic Securities paid HK$780 million (US$100.6 million) in 2015 for a majority stake in the forex trader, which was known at the time as KVB Kunlun.CLSA Premium changed its name last year, saying in a stock exchange filing at the time that the change was to "better reflect that the group is part of the substantial shareholder's group of entities, including CLSA group". The company said in its annual report in April that the rebranding was to "differentiate itself from unaffiliated entities that are using a similar name and conducting a similar business". AIA gets go-ahead to convert Shanghai branch into local subsidiaryCLSA Premium reported an annual loss of HK$180 million last year, compared with a profit of HK$34.2 million in 2018. Its revenue fell to HK$16.1 million in 2019, compared with HK$471.1 million in the prior year.The company attributed its net loss to a reduction in leveraged forex trading because of a decline in customers and reduced volatility in the currency markets last year, a tightening of rules in Australia, Hong Kong and New Zealand for leveraged forex trading, and a global economic slowdown.Last year, CLSA Premium also jettisoned a number of Chinese clients who could not prove they lived outside the mainland. The company's chief executive and chief financial officer also resigned last July in a dispute with its directors.CLSA Premium's shares are lightly traded, last closing on Monday at 23 HK cents.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 © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
(Bloomberg) -- The 50-year old Hang Seng Index is poised to embrace change, and it couldn’t come soon enough for investors forced to put up with years of dismal underperformance.On Monday at around 4:30 p.m. in Hong Kong, the compiler of the gauge is expected to announce whether companies with secondary listings and unequal voting rights will be included for the first time, namely Alibaba Group Holding Ltd. Doing so would open the door to transforming the Hang Seng from a gauge overstuffed with banks and insurers to one that better reflects the technological dynamism of China’s economy.Alibaba -- one of China’s most valuable companies -- launched a secondary listing in Hong Kong in November. Another potential candidate for inclusion is Meituan Dianping, China’s largest food-delivery website, while JD.com Inc. is considering a secondary listing of its own in the city. With almost $30 billion of pension-fund assets and exchange-traded funds tracking the gauge as of December, such a change could spur a flood of local share sales by U.S.-listed firms.“The decision is going to completely change the nature of index, which has been characterized as one with low valuation and low growth rate for a long time,” said Yang Lingxiu, strategist at Citic Securities Co.About half of the total weighting of the Hang Seng Index is in financial firms, compared with about 15% on average for benchmarks in Europe, the U.S., Japan and mainland China, according to data compiled by Bloomberg. The gauge has gained 1.7% a year on average in the past decade, versus 5.2% for the MSCI All-Country World Index. In January, the Hang Seng approached its lowest level relative to the MSCI measure since 2004.The process of adding the likes of Alibaba may take some time, however. “In order to reduce the one-off impact on the market, the index may propose adding the weight of Alibaba gradually,” said Chi Man Wong, analyst at China Galaxy International Financial Holdings. Alibaba is the biggest company listed in Hong Kong by market cap and is the second most actively traded stock in the past 30 days, just after the Hang Seng Index’s largest component Tencent Holdings Ltd., according to data compiled by Bloomberg.The index would need to delete two companies to add Alibaba and Meituan, as current rules require the number of firms on the gauge to be fixed at 50. Component maker AAC Technologies Holdings Inc. and snack firm Want Want China Holdings Ltd. are among likely candidates for deletion due to their smaller market capitalization, according to traders.The addition would raise the Hang Seng Index’s forward price-to-earnings ratio to about 12 from the current 11, making it more expensive than Shanghai Composite Index, data show.Ultimately, the weight of technology and consumer discretionary sectors’ could surge from the current single digits to more than 30%, if all U.S.-listed Chinese companies that match the Hang Seng’s requirements list in the city and are included in the index, according to Citic Securities Co.To be sure, giving greater weight to companies with unequal voting rights could raise investor concerns.“The key issue is that weighted voting rights create an opportunity for someone to have greater influence than their economic ownership would suggest,” said Gabriel Wilson-Otto, head of stewardship Asia Pacific at BNP Paribas Asset Management. “The underlying concern is that this heightens the potential for agency risk, and reduces avenues of recourse if the company does something that’s not in the best interests of the minority shareholders.”Investors in some U.S-listed Chinese firms have recently been burned by accounting scandals, raising questions about the standard of corporate governance at some companies.Two Accounting Scandals in a Week Burn China Inc. Investors (1)The Hang Seng Index would nevertheless benefit from luring more U.S.-listed companies, said Cliff Zhao, head of strategy with CCB International Securities Ltd.“More funds will be attracted to follow the index, which is a good thing for Hong Kong’s stock market.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
China's Citic Securities Co. <600030.SS>, <6030.HK> has hired Charles Lin, the former Asia head of Vanguard Group, to be vice chairman of Hong Kong unit CLSA, as the biggest Chinese securities company seeks to build up an international presence. Chinese companies are ramping up efforts to compete with global counterparts, such as Goldman Sachs and Morgan Stanley, at home and abroad. As part of that drive, China, the world's second largest economy, has removed ownership restrictions on foreign investors on securities firms and mutual funds from April 1, allowing them access to its $45 trillion finance sector.