|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||65.83 - 66.27|
|52 Week Range||51.34 - 68.87|
|Beta (5Y Monthly)||1.03|
|PE Ratio (TTM)||8.80|
|Forward Dividend & Yield||2.30 (3.46%)|
|Ex-Dividend Date||Sep 21, 2020|
|1y Target Est||N/A|
HSBC and Bank of China (Hong Kong), two of the biggest margin lenders for Ant Group's suspended initial public offering (IPO) in Hong Kong, will pocket up to HK$25 million (US$3.2 million) in interest income, after opting not to waive interest charged from customers.Ant has been refunding investors in Hong Kong since Wednesday, after its mega dual listings in the city and on Shanghai's Star Market were halted by Chinese regulators. By Friday, it will return a record HK$1.3 trillion to 1.55 million retail investors. But those who had taken out margin loans to buy the shares face HK$60 million in interest payments, according to an estimate by brokers.The lenders, two of Hong Kong's three note-issuing banks, will take the biggest cut, having extended half of the HK$500 billion in margin financing offered by all banks and stockbrokers in the city. Smaller banks and some stockbrokers have, however, waived the interest charged to customers.Get the latest insights and analysis from our Global Impact newsletter on the big stories originating in China.The decision to not join in comes as HSBC and BOCHK are facing increasing pressure on their margins from an extended period of historically low interest rates, which is not likely to change before 2023, as central banks look to jump-start economies hit hard by the coronavirus pandemic."Customers are being refunded in accordance with our IPO loan terms and conditions," an HSBC spokesperson said. The bank extended HK$150 billion in margin loans at an interest rate of between 0.48 per cent and 0.88 per cent for five days, which gives it an income of between HK$10 million and HK$18 million. BOCHK lent about HK$100 billion at 0.5 per cent."I am very disappointed, as I have borrowed HK$16 million from HSBC to subscribe to Ant's IPO. Now, I can't get any shares, but still need to pay interest," said Kenia Cheng, a Hong Kong businesswoman.The bank was considering a shift to a more fee-based model for some deposit customers - retail and corporate - as it seeks to grapple with the low-interest-rate environment, Ewen Stevenson, HSBC's chief financial officer, said during its third-quarter results presentation on October 27. The bank's pre-tax profit declined 36 per cent to US$3.07 billion in the third quarter on a year-on-year basis, as low rates weighed on its bottom line, Noel Quinn, HSBC's chief executive, said. Its net interest income declined 14.8 per cent in the quarter to US$7.57 billion.Smaller banks, such as Dah Sing Bank and CMB Wing Lung, as well as major stockbrokers, such as Bright Smart Securities, Phillip Securities and Futu Securities, have waived part or all fees and the interest due. Valuable Capital, a brokerage, has gone a step further and is offering HK$50 cash coupons, to be used if Ant revives its IPO at a later date."Many stockbrokers are waiving interest on margin loans and fees for their customers. It will cost them money, but it will also help them build up their brand and enhance client relationships. It will encourage more investors to borrow from stockbrokers [in the future]," said Christopher Cheung Wah-fung, a lawmaker for the financial services sector who is also chairman of Christfund Securities. Christfund does not offer IPO margin loans.In mainland China, while there is no information from Ant about refunds yet, buyers of IPO shares can have full amounts paid to issuers and interest refunded to them, according to the country's securities law. Last Friday, more than 701,000 retail investors won a lottery in Shanghai to subscribe to 500 of Ant's mainland IPO shares each at 68.8 yuan (US$10.3) per share, for a total of 24.1 billion yuan.In 2015, 10 companies due to list on the Shanghai and Shenzhen stock exchanges, including Beijing Sanfo Outdoor Products, Thunder Software Technology and Anji Foodstuff, were asked by regulators to refund investors. The companies had completed their fundraising and were on track to making their trading debuts. The refunds were made to investors' bank accounts, brokers 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 © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Bank of China (Hong Kong) Limited and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Hong Kong's banks, from new digital lenders to traditional powerhouses of the sector, are in a price war to lure 7 million Hong Kong permanent residents into using their platform to get their HK$10,000 (US$1,290) government cash handout.Newly-launched virtual lenders like Airstar and the three note-issuing banks, HSBC, Standard Chartered, and Bank of China Hong Kong, have entered the fray, offering high interest rates, lucky draw prizes and other incentives.The HK$71 billion of payouts announced by Financial Secretary Paul Chan Mo-po in February's budget is aimed at helping people cope with the economic slump caused by the Covid-19 pandemic and a year of anti-government protests. Bankers, however, are taking it as an opportunity to compete for new customers.People can register through one of 21 banks from June 21 until the end of next year to get their hands on the HK$10,000, with the money due to be paid into their registered bank account from July 8.HSBC, the largest lender in the city, is offering a 10 per cent interest rate on up to HK$50,000 of savings for two months for new customers who open an account via its mobile phone app, until the end of July. It will also offer a lucky draw for customers who register for the government payout via its platform, but details will only be given next week, according to a spokesman for HSBC.BOCHK is offering a 4.3 per cent interest rate for three-month time deposits of up to HK$100,000 for new customers who use mobile banking to open a new account.Normal saving deposit rates in Hong Kong are close to zero, while time deposits are only between 1 and 2 per cent. Permanent residents can get HK$10,000 cash handout from July 8Lucky draws for cash prizes have emerged as a theme for the banks competing for customers to sign up for the government payout. Standard Chartered is offering an extra HK$10,000 cash for each of 24 winners, Hang Seng Bank is offering 9,000 people the chance to win HK$20 each, while five will get HK$10,000. Bank of East Asia is offering 31 customers prizes between HK$1,000 and HK$10,000.Citibank is enticing customers with HK$68 cash for anyone registering with it for the government payout. It will also give HK$100,000 to one customer in a lucky draw, the highest among all banks.Brand new players have also joined the game. Airstar, a joint venture virtual bank led by mobile phone maker Xiaomi, started full operations on Thursday. It is offering a 3.6 per cent savings rate on up to HK$20,000 for new customers. Hong Kong's low-interest rates will help stricken economy recover quicklyWeLab Group, an online lender, last month offered a HK$10,000 loan to borrowers, free of charge provided they agreed to repay it once they receive the government payout. Co-founder and chief executive Simon Loong said about 70 per cent of its 4,000 applicants are new customers."This is a good opportunity for Hongkongers to try the new online banking services," Loong said.New players coming to the market with compelling saving rates will follow this with attractive loan offers, James Lloyd, a partner at advisory firm EY, predicts."As incumbent players respond in kind, we expect to see some capital transfers and net interest margin compression. Ultimately, the challenge for both new and existing players will be how to generate account loyalty without engaging in a never-ending price war," Lloyd 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 © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.