|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||34.57 - 34.94|
|52 Week Range||25.91 - 36.79|
|Beta (5Y Monthly)||1.07|
|PE Ratio (TTM)||36.20|
|Forward Dividend & Yield||0.77 (2.21%)|
|Ex-Dividend Date||Mar 10, 2020|
|1y Target Est||N/A|
(Bloomberg) -- JD.com Inc. and NetEase Inc. have won approvals to forge ahead with their Hong Kong share sales that could raise billions of dollars, as political turmoil leaves the city’s status as an international finance center clouded in uncertainty.Hong Kong Exchanges & Clearing Ltd. approved the secondary listing applications by the U.S.-listed Chinese tech companies, according to people familiar with the matter, asking not to be identified discussing private matters. Online gaming firm NetEase filed a preliminary prospectus with the exchange later on Friday, a confirmation that it has received the official green light.NetEase plans to list in Hong Kong on June 11, while China’s No. 2 online retailer JD aims to debut on June 18, Bloomberg News has reported. JD’s stock sale could raise at least $2 billion to help the e-commerce firm shore up its position in an increasingly competitive home market.Representatives for Hong Kong’s stock exchange, JD and NetEase declined to comment.Escalating tensions between Washington and Beijing are increasing risks for Chinese companies like JD and NetEase who seek to broaden their investor base. U.S. capital markets are becoming frosty toward Chinese firms, and fears over the impact of national security legislation set to be imposed on Hong Kong, including the resumption of protests in the city, have sent the local market into convulsions.What Hong Kong Losing Its ‘Special Status’ Would Mean: QuickTakeThe twin debuts would follow Alibaba Group Holding Ltd.’s $13 billion Hong Kong stock sale last year, hailed as a homecoming for Chinese companies and a win for Hong Kong stock exchange, which lost many of the largest tech corporations to U.S. bourses because it didn’t allow dual-class share voting at the time -- a requirement that’s since been relaxed.Shares in U.S.-listed Chinese companies have see-sawed since senators overwhelmingly approved legislation on May 20 that could bar the country’s firms from American exchanges. The decision cast a pall of uncertainty over hundreds of billions of dollars of shares in some of the world’s best-known companies.(Adds NetEase filing in second paragraph)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.
Singapore Exchange faces a threat to its growth strategy after index provider MSCI decided to shift licensing of many derivatives to Hong Kong, jeopardising the status of what was just a month ago one of the best sector performers globally. SGX shares fell 7% on Thursday, extending the previous day's 11.6% slump - the biggest in over 16 years - as analysts cut their earnings forecasts after MSCI's surprise announcement on Wednesday. Rapid growth in derivatives products, led by equities, has buoyed SGX's business over the past few years.
Shares in bourse operator Singapore Exchange Ltd suffered their steepest daily fall in more than a decade after the company said its profit would be hit when a licence to offer a suite of regional equity derivatives ends in February 2021. Hong Kong Exchanges and Clearing Ltd will instead host trade in the contracts, which are tied to MSCI Inc's indexes and licensed from MSCI. Singapore Exchange estimates a potential 10-15% hit to next year's profit as a result.
Hong Kong's exchange is launching derivatives with index provider MSCI in a deal that hurts rival Singapore and boosts its global appeal amid U.S. warnings that Chinese pressure on the city’s autonomy threatens its future as a financial hub. The announcement comes days after China's National People's Congress said it would impose new national security legislation on Hong Kong, which U.S. government officials have warned could bring into question the city's special economic status under U.S. law. On Tuesday, White House spokeswoman Kayleigh McEnany said president Donald Trump had told her "it's hard to see how Hong Kong can remain a financial hub if China takes over."
The operator of the Hong Kong stock exchange said on Wednesday it has signed a licence agreement with global index publisher MSCI to launch Asia and Emerging Markets futures and options contracts. Under the deal, MSCI will license to Hong Kong Exchanges and Clearing Ltd's unit, Hong Kong Futures Exchange, a suite of its equity indexes in the regions to initially introduce 37 futures and options contracts based on the indexes.
(Bloomberg Opinion) -- China’s decision to impose a national security law on Hong Kong has spurred speculation of capital flight and an erosion of the city’s status as an international financial center. As a venue for share offerings, at least, the near-term future is looking bright. For that, the territory can thank worsening U.S.-China relations.U.S.-listed Chinese technology companies are lining up to sell stock in Hong Kong, seeking refuge from an environment that has become increasingly less hospitable. Nasdaq-traded JD.com Inc. and NetEase Inc. are planning secondary listings in the city next month, following a trail blazed by Alibaba Group Holding Ltd. in November. Optimism that more companies will join them drove shares of Hong Kong’s exchange operator up more than 6% on Monday.There’s every reason to expect these stock offerings to do well, and push Hong Kong back up the rankings of the world’s largest fundraising centers. So far this year, the city is the sixth-largest market by capital raised. It topped the table for the whole of 2019 when New York-listed Alibaba sold $13 billion of stock, underscoring the existence of a strong local investor base for China’s most successful companies.The reception for Alibaba suggests that Asian institutional investors want to be able to trade China’s leading enterprises in their own time zone. JD and NetEase are also among the nation’s technology champions. Beijing-based JD competes with Alibaba in e-commerce, while Hangzhou-based NetEase is behind some of the most popular mobile games in China. Beyond these two, search-engine operator Baidu Inc. is considering delisting from Nasdaq and moving to an exchange nearer home, Reuters reported last week. The coronavirus has exacerbated tensions between Washington and Beijing, while scandals such as fabricated sales at Luckin Coffee Inc. have spurred politicians to push for tighter regulation, giving Chinese companies an incentive to list elsewhere.Hong Kong is an obvious choice. The city burnished its appeal for U.S.-traded companies last week when the compiler of the city’s benchmark Hang Seng Index said it would change its rules to admit secondary listings and companies with dual-class share structures. Stocks that join the benchmark can expect inflows from passive investors such as exchange-traded funds that track the index.Citigroup Inc. reckons that 23 of the 249 Chinese stocks traded in the U.S. meet Hong Kong’s criteria for a secondary listing, which require companies to have a market value of $5.2 billion or, alternatively, a combination of $129 million in annual sales and a $1.3 billion market cap. JD tops the group with a value of $73 billion.An even more alluring prize would be inclusion of secondary listings in Hong Kong’s stock-trading links with the Shanghai and Shenzhen exchanges, which would enable mainland Chinese investors to buy these shares. Alibaba wasn’t included in the stock connect, to the disappointment of some investors. China’s government could yet decide to make this happen.It’s a reminder that Beijing has levers at its disposal to help shore up Hong Kong’s economy and financial industry, which accounts for a fifth of the city’s gross domestic product — as it did after the SARS epidemic in 2003, when half a million people demonstrated against the Hong Kong government’s first, aborted attempt to introduce national security legislation. Hong Kong Exchanges & Clearing Ltd. surged the most in 18 months Monday even as unrest returned to the city. Listing of American depositary receipts may double the exchange operator’s revenue, Morgan Stanley said. The Hang Seng Index, meanwhile, stabilized after slumping 5.6% on Friday.An exodus of businesses, people and capital may yet imperil Hong Kong’s role as an international financial center. The IPO outlook suggests that, rather than a sudden demise, that’s likely to be a long drawn-out process. This 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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Netease Inc. aims to list shares in Hong Kong on June 11 and JD.com Inc. a week after, a person familiar with the matter said, completing two mega stock sales for the city at a time of escalating market volatility.U.S.-listed Netease and No. 2 Chinese online retailer JD hope to gain approval for local debuts during listing-committee hearings on Thursday, the people said, asking not to be identified discussing private matters. JD’s stock sale could raise $2 billion or more to help the e-commerce giant shore up its position in an increasingly competitive home market. The retailer’s June 18 target coincides with its largest annual online sales event.The twin debuts follow Alibaba Group Holding Ltd.’s $13 billion Hong Kong stock sale last year, hailed as a homecoming for Chinese companies and a win for Hong Kong Exchanges & Clearing Ltd., which lost many of the largest tech corporations to U.S. bourses because it didn’t allow dual-class share voting at the time -- a requirement that’s since been relaxed. Netease and JD are also listing at a time of escalating tensions between Washington and Beijing, now spilling over into Chinese companies’ access to U.S. capital markets after the downfall of Luckin Coffee Inc. -- one of the country’s brightest startups.Representatives for JD, Netease and Hong Kong’s exchange declined to comment.Read more: JD Is Said to File for $2 Billion Hong Kong Second Listing Shares in U.S.-listed Chinese companies have see-sawed since senators overwhelmingly approved legislation Wednesday that could bar the country’s firms from American exchanges. The decision cast a pall of uncertainty over hundreds of billions of dollars of shares in some of the world’s best-known companies. China this week also moved towards national security legislation for Hong Kong, sowing panic in the city’s $5 trillion stock market.Read more: Hong Kong Stocks Crash On New Concern Over City’s FutureEven if the delisting bill is eventually approved, the impact on China’s largest tech corporations remains unclear. American lawmakers have long raised red flags over the billions of dollars flowing into the Asian country’s biggest firms, much of it from pension funds and college endowments in search of fat investment returns. Alarm has grown in particular that American money is bankrolling efforts by the country’s technology giants to develop leading positions in everything from artificial intelligence and autonomous driving to internet data collection.Baidu Inc. founder Robin Li told the state-backed China Daily the company was concerned about heightened scrutiny of Chinese companies and was constantly exploring options including a secondary listing in Hong Kong or elsewhere.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.
(Bloomberg Opinion) -- Hong Kong’s stock-exchange operator is at a crossroads. Just like its home city, Hong Kong Exchanges & Clearing Ltd. needs to find a path through a turbulent era that reconciles its international and Chinese identities.HKEX is hunting for a new chief executive officer after Charles Li said he will step down by October next year at the latest, when his contract expires. Nicknamed “Mr. China” for his success in building trading links with mainland exchanges, Li doubled revenue during his decade leading the company. An attempt to vault HKEX into the top ranks of global exchange operators failed last year when the London Stock Exchange Group Plc rejected a $37 billion takeover approach, citing concerns over its relationship with Hong Kong’s government, which is appointed by Beijing.Li’s successor will have to carry forward his work of deepening ties with the Shanghai and Shenzhen exchanges, while keeping foreign investors happy by improving corporate governance. It’s a delicate task. The mainland Chinese markets are competitors as well as partners. Hong Kong is trying to position itself as the venue of choice for Chinese technology companies seeking to go public, especially as the U.S. market becomes less hospitable. Shanghai and Shenzhen are undertaking their own initiatives to persuade companies to list at home.Shanghai has been particularly aggressive, becoming the world’s top destination for initial public offerings in 2020 (albeit without a single overseas listing), a title that Hong Kong has held for years. While its Star market aimed at tech companies has yet to attract any big names, competition is heating up. Shenzhen, the southern city that borders Hong Kong, is preparing to emulate Shanghai by moving to a registration-based IPO system and scrapping limits on price movements on its Nasdaq-like ChiNext board.That will put a premium on finding a CEO who can match Li’s mainland connections and diplomatic prowess. With international expansion seemingly blocked off after the LSE rebuff and the coronavirus outbreak, HKEX’s growth will continue to rely heavily on cooperation with Chinese exchanges and regulators. Expanding the stock-trading pipes that Li established with Shanghai and Shenzhen is one route. HKEX scored a coup when New York-traded Alibaba Group Holding Ltd., China’s biggest company by market value, raised $13 billion in a Hong Kong secondary offering last November. Some of the sheen came off the celebrations when it emerged that Alibaba wouldn’t be included in the so-called Stock Connect programs, blocking mainland-based investors from trading the shares. Getting secondary listings on the Connect should be a priority — especially given Hong Kong is looking to woo other U.S.-listed Chinese companies such as JD.com Inc.There are further opportunities for expanding the cross-border trading links, including letting mainland investors buy overseas bonds. Currently, the three-year-old Bond Connect is a one-way system, allowing Hong Kong investors to buy mainland securities but not vice-versa. The next HKEX chief may also push for Hong Kong ETFs and IPO subscriptions to be admitted to the connect programs.At the same time, Hong Kong needs to keep its international flavor if it’s to appeal to Chinese punters who want access to global investments. HKEX slowed efforts to attract foreign listings in recent years, as volumes dimmed, having drawn some notable names including Italian luxury house Prada SpA. It should restart these. Hong Kong’s role as an international market depends critically on sustaining confidence among global investors that it is relatively clean and well governed. Under Li, the Hong Kong exchange bowed to the commercial imperative by opening the door to dual-class share structures and presided over a market where bad behavior among small-caps was endemic. His replacement will need to change Hong Kong’s reputation as a playground for short sellers such as Carson Block’s Muddy Waters and Gillem Tulloch’s GMT Research Ltd.Managing these push-pull conflicts — moving closer to China while becoming more international, building up business while improving governance — will take some dexterity. Li has said he may leave before the end of his term if a successor is found. An early exit is far from assured.\--With assistance from Zhen Hao Toh. This 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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Hong Kong Exchanges and Clearing Limited (HKG:388) just released its latest quarterly report and things are not...
(Bloomberg) -- Hong Kong Exchanges & Clearing Ltd. Chief Executive Officer Charles Li said he’s stepping down after 10 years, adding his departure to the rising challenges for the bourse at a turbulent time for the financial hub.The 59-year-old will continue to lead the exchange until his contract expires in October next year, or leave earlier if a replacement is found, according to a filing. HKEX Chairman Laura Cha praised his leadership and thanked him “for giving us as much time as possible to ensure a smooth transition.”Li doubled revenue since taking over, earning the moniker “Mr. China” for tying the bourse closer to the mainland. Still, a failed bid to takeover the London Stock Exchange last year stands as a misstep. The Asian exchange now faces mounting headwinds with political unrest and a deep economic slump in its home city. A push by China to build up its own exchanges is a challenge to Hong Kong’s role as the main financing hub for Chinese companies.“He has done very well in building our foundation,” said Christopher Cheung, a lawmaker for the financial services sector. “His leaving will certainly bring a shock to HKEX in this turbulent time, with unfinished tasks to lure U.S.-listed Chinese stocks to come back to Hong Kong, and the challenge from Macau to develop a financial center.”A former banker, Li has championed several key market reforms as well as pursued acquisitions. Before falling short in his attempt to buy the LSE in 2019, he engineered a deal for the U.K. capital’s metal exchange in 2012. He was instrumental in linking the exchange with bourses in Shanghai and Shenzhen, allowing stock trading with the mainland, a program that now contributes about 10% of its revenue.The shares have returned 8% a year since he took over, almost double the return on the city’s benchmark index. HKEX shares dropped as much as 4%, and were down 3.3% at HK$245 as of 2:30 p.m. in Hong Kong.The bourse on Thursday reported a 13% drop in net income to HK$2.26 billion, missing an estimate of HK$2.77 billion. Still, core revenue rose 19% amid a trading boom and it retained its top spot globally for the number of initial public offerings. The severe market turmoil drove its investments into the red, after a $882 million gain a year earlier.But trading is already cooling. And as volatility fades, there could be a “sharp reduction” in revenue and earnings for the exchange, Goldman Sachs Group Inc. said in a report last month. Declining volatility and reduced income from investments will be “double headwinds for revenue” this year, the U.S. bank said.China’s increasingly assertive stance toward Hong Kong is raising doubts about the exchange’s push to expand its landmark Stock Connect program, which allows trading of stocks between the city and Shanghai and Shenzhen. Li said in February that one needs to “be realistic” on expecting progress on big market initiatives due to virus outbreak.One sticking point is whether to include in the Stock Connect shares like Alibaba Group Holding Ltd., which are dual listed and allowing weighted voting rights.The program delivered record revenue for the exchange of HK$404 million, up 74% from a year earlier as both northbound and southbound trading jumped to all-time highs.What Bloomberg Intelligence Says:The exit of HKEX’s CEO “who spearheaded the launch of the Stock and Bond Connect, increases the execution risk of its strategy to connect China’s financial markets with the world,” said BI senior industry analyst Sharnie Wong. Read more hereThe CEO in November was forced to apologize after saying the civil unrest that gripped the city last year had exposed a fault in the former British colony’s “one country two systems” framework for the city’s return to Chinese rule in 1997. He said he had been misinterpreted, calling himself “the biggest supporter” of the system.Born in Beijing, Li grew up in the northwestern Gansu province during the Cultural Revolution. He worked on an oil rig and then studied English Literature in China and later earned a law degree at Columbia University. A few years of working at law firms, were followed by 16 years in banking: first at Merrill Lynch & Co. and then JPMorgan Chase & Co., where he was China chairman when he joined HKEX in 2009.He was both the first Chinese national and the first investment banker to lead the bourse. Besides the links to China, Li also pushed through major listing reforms to allow companies with weighted voting rights and biotech companies still in the research stage to list. HKEX is now the second largest listing hub for biotechnology firms. The reforms brought Chinese tech giants like Xiaomi Corp., Meituan Dianping and Alibaba to the city.In a memo to staff, Li said that his tenure was “simply the most exciting and most rewarding time of my life.”He decided to notify the board with more than one year’s time left so that “clarity of direction can help maintain confidence and continuity.”Speculation will now grow on what his next move will be. There’s plenty of opportunity for experienced Chinese executives with a foot on Wall Street as China this year is opening its financial market fully to foreign ownership, with the likes of Goldman and JPMorgan piling in with capital.(adds details financial opening in last paragraph.)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.
After looking at Hong Kong Exchanges and Clearing Limited's (SEHK:388) latest earnings announcement (31 December...
(Bloomberg) -- NetEase Inc. has picked banks for its planned second listing in Hong Kong, according to people familiar with the matter, joining other Chinese technology companies in tapping the city’s stock market for new funds.The company is working with advisers including Credit Suisse Group AG and China International Capital Corp. on preparations for the offering and has confidentially filed a listing application with the stock exchange, the people said. The share sale could happen as soon as the second half of this year, one of the people said, asking not to be identified because the information is private.The Hangzhou-based online gaming and entertainment company, which currently trades on the Nasdaq, has a market value of about $44 billion.Shares of bourse operator Hong Kong Exchanges & Clearing Ltd. extended gains after the Bloomberg News report and were up 2.9% at the close Tuesday. NetEase’s American depositary receipts jumped as much as 5.5% in U.S. trading and were trading 3.4% higher at 12:15 p.m. in New York, outpacing the 2.1% rise in the benchmark Nasdaq Composite Index.No final decisions have been made, and details of the proposed offering could change, the people said. Representatives for NetEase, Credit Suisse and CICC declined to comment.NetEase was among the Chinese firms that had discussed secondary listings with HKEX after Alibaba Group Holding Ltd. raised $13 billion in its 2019 secondary share sale, Bloomberg News reported in January. Chinese e-commerce giant JD.com Inc. has also filed confidentially for a second listing in the Asian financial hub, people familiar with the matter have said.Sales of mobile games are surging this year as coronavirus-driven lockdowns and other social distancing measures have led to more time and money spent on gaming, according to Bloomberg Intelligence analysts Matthew Kanterman and Vey-Sern Ling. Tencent Holdings Ltd. and NetEase are the market leaders in iOS mobile games and the analysts expect the duo to maintain their leads. NetEase has a 6.1% share of the market, according to analytics firm Sensor Tower.Games developed by NetEase are among the most popular in China, including the hit titles Fantasy Westward Journey 3D and Knives Out. The company also operates international online games locally, such as Activision Blizzard Inc.’s World of Warcraft.While still reliant on gaming for the bulk of its revenue, NetEase is competing with Tencent and Alibaba to provide a diverse set of online services, including music streaming and digital education, to the world’s second-largest economy.The U.S.-Trained Coder Helping NetEase Crack a $36 Billion Arena(Updates with U.S. trading in fourth paragraph)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.
(Bloomberg) -- Chinese e-commerce giant JD.com Inc. has filed confidentially for a second listing in Hong Kong, according to people with knowledge of the matter, joining rival Alibaba in tapping the city’s stock market for funds.The offering could raise at least $2 billion, the people said, asking not to be identified because the information is private. The Beijing-based company, which currently trades on Nasdaq, has a market value of $64 billion.The deal comes after Alibaba Group Holding Ltd. raised $13 billion in a Hong Kong share sale last year. That much larger deal was hailed as a homecoming for Chinese companies and a win for Hong Kong Exchanges & Clearing Ltd., which lost these deals to its U.S. counterparts a decade ago because it didn’t allow dual-class share voting at the time. The bourse, which relaxed the rule in 2018, was up as much as 2.4% Wednesday.JD’s listing could come as early as the second half of the year, according to one of the people. Deliberations are ongoing and the size of the offering could still change, the people said. A representative for JD.com didn’t immediately respond to requests for comment.Read more: JD’s Retail Chief Takes Lead as Billionaire Founder RecedesWhat Bloomberg Intelligence SaysJD.com’s potential Hong Kong secondary listing may help to narrow its valuation gap with global e-commerce peers such as Amazon and Alibaba. Alibaba’s market value increased by more than 20% within two months of its Hong Kong listing in November, as its offering attracted domestic investors who are also its customers.\- Vey-Sern Ling and Tiffany Tam, analystsClick here for the research.JD’s decision comes after the Chinese online retailer’s forecast for at least 10% revenue growth in the March quarter suggested its business was proving more resilient to the epidemic than anticipated.It may fare better than its peers because it employs a direct-to-consumer sales and in-house logistics model that may prove more resilient to short-term disruptions than platforms that connect merchants with buyers, some analysts say. Away from the outbreak, JD continues to win more consumers from smaller Chinese cities and towns, while demand for the electronics it depends on should rebound after the outbreak subsides.The company’s shares slid 4.4% Tuesday, but have risen more than 23% this year while the S&P/BNY Mellon China ADR Index, which tracks U.S.-listed Chinese companies, is down 5.2% during the same period. IFR Asia reported earlier Tuesday that the company had filed for a Hong Kong listing confidentially.(Updates with analyst’s comment in the fifth paragraph. A previous version of the story was corrected to reflect HKEx’s full name in the third paragraph.)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.
Regulators will continue to cooperate closely to keep financial markets orderly and open during disruptions caused by the impact of coronavirus on the global economy, global securities watchdog IOSCO on Wednesday. "The fundamental purpose of equity, credit and hedging markets is to support the real economy, and the IOSCO Board is absolutely determined to ensure that they will remain open and functional throughout this difficult period," Ashley Alder, chair of the International Organization of Securities Commissions said in a statement.
A guest who attended the March 20 listing ceremony by SG Group Holdings at the Hong Kong stock exchange has tested positive for the coronavirus, according to the bourse operator.The infected person was among the bankers, accountants and company executives gathered to witness the ceremonial striking of the gong to mark the trading commencement of SG Group's shares on the Main Board of the exchange, in an upgrade from the smaller GEM board.Hong Kong Exchanges & Clearing Limited (HKEX) is contacting every attendee of the March 20 event, and has arranged a deep cleaning of the Connect Hall in the bourse, said a spokesman of the exchange operator, declining to divulge the identity of the infected guest. The exchange's Chief Executive Charles Li Xiaojia did not attend the ceremony, he added.The Connect Hall was established after the trading floor of the exchange was closed in 2017 when all trading had shifted electronically.SG Group, an apparel producer, was first listed on the GEM in 2017 at HK$6.40 per share. More than 10 executives who attended the listing ceremony were tested for the coronavirus, and were confirmed to be negative, according to a company staff member, who did not want his name to be used.The episode shows how even the financial services industry is under pressure to practise social distancing to avoid spreading the coronavirus, as the global pandemic gathers pace. Hong Kong, the world's largest market for initial public offerings (IPO) for the seventh year in 11, typically marks every trading debut with the ceremonial striking of the metal percussion instrument, similar to the ringing of the bell on the New York Stock Exchange. During the IPO boom of the last two years, as many as eight companies shared the stage at Connect Hall to strike the gong on a single day. Even as recently as January 16, seven IPOs took place in one day.本周香港交易所非常熱鬧，共有六家公司及一隻 ETF 上市。今日我們歡迎樺欣控股有限公司(1657)由GEM 轉至主板上市! pic.twitter.com/juI9SHcJEP" HKEX 香港交易所 (@HKEXGroup) March 20, 2020Listing in the time of coronavirus has gone fully digital since late January. InnoCare Pharma, a Beijing-based pharmaceutical producer, this week became the first company to complete its HK$2.2 billion (US$289 million)IPO process " from road show for investors to the actual commencement of trading "entirely online. Its virtual IPO did not deter investors from snapping up its shares, causing them to be overbought by 300 times. SC Group's shares rose 0.7 per cent to HK$6.95 in Hong Kong, unchanged from its debut price on the main board last week.Already, the exchanges of Shanghai and Shenzhen are conducting virtual listings. More companies may adopt the contactless, virtual IPOs, as Hong Kong hunkers down for imported cases of the coronavirus, as global travellers arrive in the city from infected regions. More than 400 people have caught the pathogen in Hong Kong, with a death toll of four.C-Link Squared, a Malaysian provider of outsourcing services, as well as an exchange-traded fund (ETF) that tracks iron ore futures will trade for the first time on Friday on the HKEX. Their executives would have to wait to strike the ceremonial gong, as the listing celebration has been postponed."The health and safety of our employees and guests remain our top priority. We will continue to monitor developments and review our arrangements as required," the HKEX spokesman 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.
U.S. Treasury Secretary Steven Mnuchin has sparked a global debate by suggesting New York's trading day could be shortened for a time to help calm stock markets rocked by coronavirus. Greece shut its stock market for nearly five weeks in 2015 at the height of its debt crisis.
Hong Kong listed companies can delay the publication of their annual reports due to the impact of the coronavirus, the city's stock exchange and markets regulators said in a joint statement on Monday. Travel bans and other restrictions imposed first across China and since globally in a bid to limit the spread of the virus have left companies and their auditors scrambling to finalise reports ahead of exchange deadlines. If a company has published at least certain material pieces of financial information by March 31, they do not have to publish their annual report until 60 days after Monday's statement, the Securities and Futures Commission, and Stock Exchange of Hong Kong said.
SINGAPORE/BEIJING, March 16 (Reuters) - The London Metal Exchange said on Monday a member of staff of a ring-dealing member has been diagnosed with the coronavirus, prompting a number of precautionary measures, including a deep clean of the last open-outcry trading venue in Europe. "The LME understands from its ring-dealing members that they wish to continue open-outcry trading from London, and will facilitate this as long as desired and practicable," a spokeswoman for the exchange, which is owned by Hong Kong Exchanges and Clearing Ltd, said in an email. Contingency plans include moving ring trading to Chelmsford, east of London, and moving to electronic pricing, she added.
Exchange operators in Chicago and London are making contingency plans and stepping up cleaning for the world's last remaining open-outcry futures and options trading floors as the global spread of coronavirus spooks markets. The exchanges are seeking to avoid disruptions linked to the virus, which has roiled equities and commodities prices worldwide. CME Group Inc has restricted large tour groups from its trading floor in Chicago and asked customers and staff to keep out "non-essential" visitors, according to a notice sent to clients on Monday.
Hong Kong's stock exchange has told companies looking to list in Asia's biggest IPO centre to disclose the impact of the coronavirus on their businesses and detail plans to mitigate the effects, three sources with direct knowledge of the matter said. Eighteen companies have filed for an initial public offering (IPO) since the start of February when Hong Kong authorities and companies began taking steps to limit the spread of the coronavirus. Malaysian software developer C-Link Squared, the latest company to file for an IPO, referenced the coronavirus 34 times in its listing application following the stock exchange's demand, documents showed.
Hong Kong Exchanges and Clearing warned that this could be a challenging year as the coronavirus outbreak and other macroeconomic factors continue to adversely affect global markets after it reported record profit for a second straight year."The outbreak of the virus brings a lot uncertainties as we do not know how long it will last and how far it will spread," said Charles Li Xiaojia, chief executive of the stock exchange operator in a telephone conference on Wednesday afternoon.Li hosted a teleconference instead of a conventional press conference in view of the Covid-19 epidemic, which has infected more than 80,000 people worldwide."The outbreak has affected the market and led to a slowdown of IPO activities. In January, we had 22 IPOs but only two after the Lunar New Year," he said. "However, since many IPOs will happen in the second half of the year, it will be too early to say how the virus will affect the whole year's performance in the IPO market."The outbreak will not affect HKEX's expansion plans under a three-year strategy it launched last year, as the bourse continues to eye mergers and acquisition opportunities after the failed bid to buy the London Stock Exchange last year."We will continue to expand our international footprint. If there is a good opportunity, we will look into it," he said.He said the exchange continues to work with the mainland regulator to add companies whose shares are a secondary listing into stock connect schemes. "It is more a question of when it will happen. We will be able to reach a consensus in future," he said.The operator of the third largest stock market in Asia posted a net profit of HK$9.39 billion (US$1.21 billion), an increase of 1 per cent from HK$9.31 billion in 2018, on the back of a slew of new listings and higher turnover from the stock connect scheme, according to a stock exchange filing on Wednesday. However, the profit was slightly below the consensus forecast of 2 per cent growth according to analysts polled by Bloomberg.HKEX chairwoman Laura Cha Shih May-lung warned of challenges ahead because of the outbreak.Laura Cha Shih May-lung, chairwoman of Hong Kong Exchanges and Clearing, has warned of challenges ahead. Photo: Jonathan Wong alt=Laura Cha Shih May-lung, chairwoman of Hong Kong Exchanges and Clearing, has warned of challenges ahead. Photo: Jonathan WongNew listings gained momentum in the fourth quarter last year, with the US-listed e-commerce giant Alibaba Group Holding's US$12.9 billion secondary offering in November. This allowed the Hong Kong stock exchange to retain the No 1 ranking as the world's largest IPO market. Alibaba owns the South China Morning Post.HKEX shares fell 0.8 per cent to close at HK$259.8 on Wednesday after the results were announced during the lunch break. Coronavirus: IPO applicants face uphill climb as regulators scrutinise companies' ability to withstand impactThe company said it would pay a second interim dividend of HK$2.99 per share, bringing its full-year dividend to HK$6.71, the same as a year earlier.Charles Li Xiaojia, CEO of Hong Kong Exchanges and Clearing Limited, will host a teleconference instead of a press conference because of the Covid-19 epidemic. Photo: Winson Wong alt=Charles Li Xiaojia, CEO of Hong Kong Exchanges and Clearing Limited, will host a teleconference instead of a press conference because of the Covid-19 epidemic. Photo: Winson WongJeffrey Chan Lap-tak, founding partner of Oriental Patron Financial Group, said the outbreak may lead to a slowdown of new listings, but it will not hurt HKEX's full-year profitability."After the outbreak is over, the number of new listings will increase in the second half of this year," Chan said, adding that US-listed technology companies were also eyeing listing in Hong Kong after Alibaba's successful listing.The exchange's trading fee income dropped 12 per cent last year on the back of a 19 per cent decline in average daily turnover to HK$87.16 billion. This was offset by listing fees, which rose 6 per cent as a result of the strong IPO market.Hong Kong saw 183 new listings last year that saw companies raise a total of HK$314.2 billion " the highest since 2010. Listing fees rose 6 per cent to HK$954 million last year.Year to date, there have been 24 new IPOs that have raised HK$9.2 billion, compared with 21 IPOs in the same period last year.Average daily turnover through the northbound stock connect, which refers to international investors trading Shanghai and Shenzhen shares via HKEX, doubled last year to a record 41.7 billion yuan.Average daily turnover in January stood at HK$103.9 billion, an increase of 18 per cent from last 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 © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
The European Union's markets watchdog said on Thursday it has asked its British counterpart to ensure that ICE Futures Europe and the London Metal Exchange fully comply with the bloc's market transparency rules for commodity derivatives. The European Securities and Markets Authority (ESMA) said it "encourages" Britain's Financial Conduct Authority to "employ timely" measures to ensure compliance with transparency obligations at ICE Futures Europe and the LME.
Hong Kong's markets regulator and stock exchange will relax rules on how companies must publish their annual results in response to challenges caused by the newly identified coronavirus, they said in a joint statement on Tuesday. In normal circumstances Hong Kong-listed companies must publish preliminary results which have been agreed with their auditor by March 31, or have their shares suspended from trading.
Hong Kong market regulators have decided not to give a blanket exemption for listed companies to delay their financial reporting beyond the March 31 deadline, after the accounting body highlighted potential delays caused by travel restrictions in mainland China and elsewhere.Instead, the companies have been asked to get in touch with the regulators and provide explanations if they are unable to complete or issue their financial results on time as a result of the coronavirus outbreak, according to guidelines issued by the Securities and Futures Commission and the Hong Kong Exchanges & Clearing on Tuesday.The regulators, however, said they will approve any delay on a case-by-case basis for those affected by the viral outbreak.The instructions came after the South China Morning Post reported on Thursday that both sides of the industry held an emergency meeting to consider allowing companies to delay their 2019 annual results beyond the March 31 deadline, or issue unaudited results instead.The coronavirus outbreak has prompted China to lock down several cities in central Hubei province, including the capital, Wuhan, where the deadly virus originated. The Chinese government has also disabled several transport hubs to contain the outbreak, while many carriers have since halted flights to mainland China and Hong Kong began to tighten border controls. Hong Kong exchange, accountants mull extending reporting deadline amid travel bans, viral outbreakThere were 1,241 mainland Chinese companies listed in Hong Kong at the end of 2019, making up half of the 2,449 members of the bourse, according to exchange data.They accounted for 73 per cent of the exchange's market capitalisation and 83 per cent of the average daily turnover, reflecting their dominance and importance over the years to Asia's third-largest capital market.Hong Kong has stepped up border controls amid pressures by medical profession to contain the viral outbreak. Photo: Edmond So alt=Hong Kong has stepped up border controls amid pressures by medical profession to contain the viral outbreak. Photo: Edmond So"Where an issuer is unable to obtain agreement from its auditors but is otherwise in all respects able to publish its preliminary results in full compliance with the other reporting requirements set out in the Listing Rules, it should publish such preliminary results (without the agreement with its auditors) on or before the deadline," according to the joint statement. Too early to bottom fish stocks beaten by Wuhan coronavirus, analysts say, stick to new economy companies"In such cases, the exchange will normally allow trading in the securities of the issuer to continue," it added.If companies considered they may miss the deadlines, they must tell the exchange immediately and should notify their shareholders, the regulators said. The regulators said they may halt the trading of companies if they did not provide sufficient information to the market.The joint statement fell short of expectation and did not go down well with Clement Chan, managing director of BDO, which is the fifth-largest accounting firm in Hong Kong with over 200 listed companies as its clients. "It lacks clarity and effective responses seen by accountants to be helpful under the circumstances," Chan said. "I am also not sure whether due and enough consideration have been given on the potential health threat and hazard posed to accountants in this matter." Can coronavirus outbreak knock Hong Kong retail and office markets, the world's priciest, off the perch?Chan, who called for a blanket extension in reporting deadline, said almost every single listed company with December 31 year end will be affected. Even Hong Kong-based auditors were also required to work from home this week, he said.A spokesman of the HKEX said it needed to consider all parties' interests."The exchange and the SFC are aware that many issuers and their auditors are facing extraordinary circumstances and challenges and will work with them to seek a satisfactory solution for all stakeholders," he said."It is the objective of the Exchange and the SFC to minimise disruptions to trading while ensuring that the investing public continues to receive sufficient information to make informed investment decisions."The Shanghai Stock Exchange on Saturday also said it would approve requests for a delay in result announcements on a case-by-case basis. Its members are still expected to announce their results by the end of April according to onshore listing rules.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.
SHANGHAI/BEIJING, Jan 27 (Reuters) - Big businesses across China are temporarily shutting stores or advising staff to work from home, to guard against the spread of a flu-like virus as the tally of deaths rose to 80, with more than 2,700 people infected. Companies are also offering longer holidays, cancelling events and imposing quarantine, as they brace for longer-term impact following China's weekend decision to extend the week-long Lunar New Year holiday by three days to Feb. 2, in a bid to slow the spread of the virus. Hotpot restaurant chain Haidilao International Holding said it would shut stores across China from Sunday to Friday, while gaming giant Tencent Holdings Ltd and social media firm ByteDance told staff to work from home.