|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||34.00 - 34.99|
|52 Week Range||24.92 - 36.81|
|Beta (3Y Monthly)||1.08|
|PE Ratio (TTM)||35.45|
|Forward Dividend & Yield||0.78 (2.25%)|
|1y Target Est||N/A|
The dramatic failure of brewer Budweiser APAC's $9.8 billion Hong Kong listing left "mom and pop" investors badly out of pocket, a local broker has said in an unusual series of full-page advertisements in newspapers across the city on Wednesday. Bright Smart Securities & Commodities Group Ltd urged bourse operator Hong Kong Exchanges and Clearing Ltd (HKEX) and regulator Securities and Futures Commission (SFC) to reform the listing process.
Avoid companies reliant on exports, but favor those in still-nascent industries like finance and pharmaceuticals or those ripe for consolidation.
(Bloomberg) -- Sign up for Next China, a weekly email on where the nation stands now and where it's going next.Hong Kong Exchanges & Clearing Ltd.’s dual role -- as a major Asian equities trading exchange as well as the arbiter of which companies get listed on it -- is being called into question again.That’s after graftbusters on Wednesday said they arrested the former joint head of the exchange operator’s IPO vetting team and two others on charges of corruption and mismanagement in relation to two listing applications, without naming them. Hong Kong’s securities regulator also said it’s reviewing aspects of HKEX’s approach to vetting initial stock sales.HKEX enjoys a rare status among major exchanges in that it holds primary power over which companies get to go public. Critics contend that sets it up for potential conflicts of interest because it’s heavily dependent on trading volume to drive revenue, giving it a commercial incentive to accept more listings.“It tarnishes the reputation of Hong Kong a lot as the exchange is the main regulator for companies seeking listing,” said Kenneth Leung, a lawmaker and deputy chairman of the Legislative Council’s Committee on Financial Affairs. “There needs to be a thorough overhaul of the listing proceedings.”Alibaba ComingThe incident comes at a sensitive time for HKEX Chief Executive Officer Charles Li, who is looking to move beyond a series of scandals on its small-cap market and welcome Alibaba Group Holding Ltd., which is said to be preparing to raise as much as $20 billion in a secondary share sale in Hong Kong. Alibaba’s decision to list there validated Li’s successful campaign to permit stocks with weighted voting rights.“HKEX will be under pressure to show that it can effectively govern IPO approvals,” said Will Cai, a partner and the head of capital markets at Cooley Asia. Otherwise, “this would trigger more inspection of the Hong Kong IPO vetting process,” he said.The exchange’s screening process is subject to clear checks and balances and no single person makes the decision whether to approve IPOs, Li said in a June 14 WeChat post in response to media queries about issues with listings.HKEX currently oversees listing approvals with input from the Securities and Futures Commission. The bourse has seen off successive efforts to remove its IPO screening powers, including a 2003 proposal to hand them over to the SFC. A contentious consultation two years ago left the structure of HKEX’s Listing Committee unchanged, and dropped plans that would have given the SFC more responsibilities for approving IPOs.Anonymous LettersSFC chief Ashley Alder, who said at the time that the plan’s opponents might come to regret the decision, has restructured his agency’s enforcement approach to target problematic IPOs more aggressively. Hong Kong, which acts as a key financial gateway to China, has at times struggled to protect investors from fraudulent companies going public.The former HKEX official who was arrested is Eugene Yeoh, people with knowledge of the matter said. Yeoh, who resigned from HKEX in May, didn’t respond to calls seeking comments. He co-headed a team that vetted IPO applications and prepared reports for the Listing Committee, a rotating panel of external industry experts that reviews applicants.Earlier this year, HKEX had received anonymous letters alleging that an unidentified Chinese private equity firm had been raising money from Chinese investors to create shell companies that it planned to list in Hong Kong, a person with knowledge of the matter said. The letters also alleged that a person inside one of the regulators had promised to help make sure the listings were successful, the person said.It wasn’t clear whether the shell companies ended up going public in Hong Kong, and whether HKEX took any action based on the letters. A spokesman for the bourse declined to comment. Regulators have in recent years tweaked regulations to make it more difficult to list shell companies.Anthony Neoh, who chaired the SFC in the late 1990s, said this week’s scandal is unlikely to lead to any major changes in the listings system since it appeared to be tied to personal misconduct rather than structural problems. He said his “long-term preference” is for HKEX to cede its regulatory listing powers to the SFC, although added that’s unlikely to happen soon.Leung, the lawmaker, said he had no plans to call a committee hearing on the arrests while the ICAC investigation is in progress. But he’s written to the government’s Financial Services and Treasury Bureau asking for ideas on how to better scrutinize IPO applicants.With the exchange and the SFC periodically at odds over who should have the final say on listings, it’s time for the government to make a decision, he said.“The stock exchange would like listings to be done more easily,” said Leung. “And the SFC would like only quality companies to be listed and for investor rights to be protected.”\--With assistance from Crystal Tse.To contact the reporters on this story: Benjamin Robertson in Hong Kong at firstname.lastname@example.org;Lulu Yilun Chen in Hong Kong at email@example.comTo contact the editors responsible for this story: Philip Lagerkranser at firstname.lastname@example.org, Benjamin RobertsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A former senior executive at Hong Kong's stock exchange operator, and two of his associates, have been arrested for suspected corruption in approving the listing applications of two companies, according to the city's anti-graft watchdog."A former joint head of the IPO vetting team of the listing department of the Hong Kong Exchanges & Clearing Limited (HKEX) and two of his associates were arrested by the ICAC for suspected corruption and misconduct in public office in relation to the vetting of listing applications of the two listed companies," a spokesman for the Independent Commission Against Corruption said in a statement on Wednesday night.The arrests came after the ICAC, for the second time in its history, joined forces with the Securities and Futures Commission, Hong Kong's financial regulator.The joint operation, code-named "cold mountain", started on Sunday when the two agencies searched the offices of two listing sponsors, investment banks licensed by the SFC.In addition, the ICAC searched a number of other premises, including the offices of the two listed companies and a financial printing company.Bronze sculptures of bulls, the symbol of the Hong Kong stock exchange, are seen at the Exchange Square in Central. Photo: Warton Li alt=Bronze sculptures of bulls, the symbol of the Hong Kong stock exchange, are seen at the Exchange Square in Central. Photo: Warton LiThe SFC said as part of the operation it was reviewing the "manner in which the stock exchange of Hong Kong has administered or dealt with listings". The SFC is the statutory regulator responsible for overseeing the stock exchange and its parent company HKEX."While enquiries are continuing, no further comments are available at this stage. The HKEX has rendered full assistance to the ICAC during its operation," the ICAC spokesman said.HKEX issued a statement saying the ICAC has been conducting an investigation into allegations of corruption concerning one of its former employees. Key figure in Convoy scandal surfaces in newspaper ad to defend himself"The ICAC is not investigating HKEX or any other HKEX employees," the HKEX announcement said."HKEX promotes the highest standards of integrity and professionalism across its business and takes this matter very seriously."HKEX is committed to ensuring that this is investigated in full and is providing the ICAC and the Securities and Futures Commission with its full assistance and cooperation in respect of the investigation into the specific allegations."In an attempt to attract more mega IPOs, the HKEX in April last year carried out the largest listing reform of the last 25 year to make it possible for big technology companies with dual shareholding structures, and pre-revenue biotech firms, to list.In the first half of this year, Hong Kong lost its IPO crown, dropping to No. 3 worldwide behind New York Stock Exchange and the Nasdaq, because of a lack of blockbuster listings.The last time the two agencies worked together was in December 2017 when they searched offices and made four arrests relating to financial advisory Convoy Global Holdings.On May 16, the ICAC charged Convoy's former director Roy Cho Kwai-chee with conspiracy to defraud the firm by leading it to invest more than HK$89 million (US$11.4 million) in a company he had links to.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.
Tens of thousands of demonstrators in Hong Kong surrounded the city's legislature on Wednesday, forcing it to postpone a second round of debate on an extradition bill that would allow people to be sent to mainland China for trial. The protesters, most of them young people dressed in black, erected barricades as they prepared to hunker down for an extended occupation of the area, in scenes reminiscent of pro-democracy "Occupy" protests that rocked the city in 2014.
WASHINGTON/HONG KONG, June 5 (Reuters) - A bipartisan group of U.S. lawmakers introduced a bill on Wednesday to force Chinese companies listed on American stock exchanges to submit to regulatory oversight, including providing access to audits or face delisting. Chinese authorities have long been reluctant to allow overseas regulators to inspect local accounting firms - including member firms of the Big Four international accounting networks - citing national security concerns. In spite of a 2013 agreement that ended a stalemate over the issue and allowed U.S. regulators to request audit working papers in China, there have been difficulties in actually gaining access.
The London Metal Exchange (LME) has dismissed a complaint from miner and commodity trader Glencore over its inability to take fast delivery of aluminium from warehouses owned by ISTIM UK in Port Klang, Malaysia, two sources familiar with the matter said on Monday. Sources had told Reuters earlier this year that Glencore's complaint highlighted uncertainties in the LME's storage rules, after industry reform sparked by accusations from consumers that banks and traders were hoarding metal in LME warehouses.
The company behind the world's third-largest stock market has reformed to attract listings. Here are three things investors should consider about HKEX.
May 8 (Reuters) - Hong Kong Exchanges and Clearing Ltd : * QTRLY PROFIT ATTRIBUTABLE HK$ 2,608 MILLION VERSUS HK$2,562 MILLION * QTRLY REVENUE AND OTHER INCOME HK$ 4,288 MILLION VERSUS HK$4,150 MILLION ...
Hong Kong's stock exchange operator will partner with Euroclear, Europe's largest settlement house for securities, on new arrangements to help bring European Exchange Traded Funds (ETF) to Hong Kong, the companies said on Tuesday. Earlier this year, Hong Kong Exchanges and Clearing (HKEX) said it planned to become an ETF hub in Asia as part of its broader three-year strategic plan to make the exchange more relevant to global investors. This plan includes listing ETFs in Hong Kong, which are based on shares of companies trading on other bourses.
May 3 (Reuters) - Diary of Hong Kong (.HSI) corporate earnings for the week ahead. HONG KONG EARNINGS Start Date Start Time RIC Company Event Name (GMT) 07-May-2019 NTS 0002.HK CLP Holdings Ltd Q1 2019 ...
"After long discussions between the Hong Kong exchange and the China Securities Regulatory Commission, we agreed that in July weighted-voting rights shares will be included" in the stock connects between the mainland and Hong Kong, the city’s Secretary for Financial Services and the Treasury James Lau, said after a visit to the Shanghai stock exchange. China’s decision last year to exclude so-called dual-class shares from the connect initially sent the newly listed Xiaomi tumbling.
April 17 (Reuters) - Hong Kong Exchanges and Clearing Ltd : * FINAL DIVIDEND FOR 2012 OF HK$1.46/SHARE, REMAINING UNCLAIMED ON 31 MAY 2019, WILL BE FORFEITED, WILL REVERT TO HKEX Source text for Eikon: ...
SINGAPORE/HONG KONG, March 12 (Reuters) - Singapore Exchange Ltd, which generates half of its revenues from derivatives business, could see a dent in its earnings following a move by the Hong Kong exchange operator to launch Chinese A-share futures contracts, analysts said. Shares in SGX fell 1.6 percent on Tuesday after slumping 3.7 percent in the previous session when it clocked the worst slide in 13 months. On Monday, Hong Kong Exchanges and Clearing (HKEX) unveiled a deal with MSCI to provide futures contracts on the MSCI China A Index, putting it in direct competition with SGX - a leading venue for offshore investors to track Chinese A-shares via its FTSE China A50 contracts.
(Bloomberg Opinion) -- Charles Li, chief executive of Hong Kong Exchanges & Clearing Ltd., has his plan at the ready. An agreement with MSCI Inc. is in the bag. Once regulators bless the idea, he will give futures contracts on China’s A-share index in the city a go.
SHANGHAI/HONG KONG (Reuters) - Global index publisher MSCI and the Hong Kong stock exchange said on Monday they will launch futures contracts on the MSCI China A Index to provide a hedging tool as international investor interest in Chinese mainland shares surges. The license agreement between MSCI and Hong Kong Exchanges and Clearing Ltd (HKEX), which will launch the new product, comes less than two weeks after MSCI announced it would quadruple the weighting of Chinese shares in its global benchmarks later this year.
March 11 (Reuters) - Hong Kong Exchanges and Clearing Ltd : * UNIT SIGNED AN AGREEMENT WITH MSCI LIMITED * MSCI HAS AGREED TO LICENSE TO HKFE MSCI CHINA A INDEX FOR INTRODUCTION OF FUTURES CONTRACTS * ...
Hong Kong's stock exchange has suspended share purchases of Han's Laser Technology made from overseas through the city's stock connect with the Shenzhen bourse, after foreign ownership in the mainland firm neared the regulatory cap. According to the Shenzhen Stock Exchange's website, the proportion of Han's Laser Technology shares held by overseas shareholders reached 28.38 percent on Tuesday. Under Chinese rules, combined foreign ownership in a China-listed company must not exceed 30 percent, while the ownership cap for an individual overseas investor is 10 percent.
Feb 28 (Reuters) - Hong Kong Exchanges and Clearing Ltd : * HONG KONG EXCHANGES AND CLEARING ANNOUNCES STRATEGIC PLAN FOR 2019-2022 * AIMS TO FURTHER INCREASE INTERNATIONAL RELEVANCE TO CHINA AND ASIA, ...
Feb 27 (Reuters) - Hong Kong Exchanges and Clearing Ltd : * FY PROFIT ATTRIBUTABLE HK$ 9,312 MILLION VERSUS HK$7,404 MILLION * FY REVENUE AND OTHER INCOME HK$15,867 MILLION VERSUS HK$13,180 MILLION * FINAL ...