15 September 2019

Finance & Property

  • The London Stock Exchange reportedly wants to focus on completing its US$27 billion proposed acquisition of Refinitiv rather than risk it being derailed by the Hong Kong bourse, Photo: Bloomberg

    LSE board set to meet for decision on HKEx bid: report

    Sep 13, 2019 9:19am
    The London Stock Exchange’s board will meet in coming days to decide on the Hong Kong bourse’s surprise US$39 billion takeover proposal, a source close to the British company said on Thursday, as the market poured...
  • Low interest rates are good for economic growth, but one can’t say the same thing about negative rates, US Treasury Secretary Steven Mnuchin said. Photo: Bloomberg

    US to consider ultra-long Treasury bonds: Mnuchin

    Sep 13, 2019 9:15am
    The United States will issue 50-year government bonds if there is “proper demand”, and could also explore the possibility of 100-year debt, US Treasury Secretary Steven Mnuchin said on Thursday. “We are going to start with...
  • Hong Kong Exchanges and Clearing CEO Charles Li has made a daring move, but he admits he came in a bit late. Photo: Bloomberg

    HK-British corporate takeover drama: money can’t buy you love?

    - Sep 12, 2019 10:37am
    If Wednesday’s surprise announcement by the Hong Kong Exchanges and Clearing (HKEx, 00388.HK) of its proposal to acquire the London Stock Exchange (LSE) were a drama, would it be a comedy or a tragedy? Well, some...
  • HKEx appears confident its LSE proposal will face no major regulatory hurdles, but closing a deal will be anything but easy. Photo: Bloomberg

    HKEx seen facing uphill battle on US$39 bln bid for LSE

    Sep 12, 2019 10:17am
    Hong Kong Exchanges and Clearing (HKEx) unveiled a US$39 billion takeover approach to the London Stock Exchange (LSE) on Wednesday that received a cool response from investors concerned about its regulatory and financial hurdles. To prevail,...
  • The Hong Kong Exchanges and Clearing's bid to take over the London Stock Exchange comes as Britain is set to leave the European Union and Hong Kong is beset by months of political turmoil. Photo: CNSA/Bloomberg

    HKEx makes US$39 billion bid for London Stock Exchange

    Sep 11, 2019 5:55pm
    Hong Kong Exchanges and Clearing (00388.HK) has made an unsolicited US$39 billion takeover bid for the London Stock Exchange, an offer contingent on the LSE ditching its acquisition of data company Refinitiv. The combination would help...
  • WeWork may seek a US$15-18 billion valuation in an IPO, down from the US$47 billion value it commanded in a private fundraising round in January, according to a report. Photo: Reuters

    WeWork pursues IPO despite SoftBank call for delay: report

    Sep 11, 2019 11:00am
    Office-sharing startup WeWork is said to be pressing ahead with plans for an initial public offering despite calls by the firm’s largest private investor, Japan’s SoftBank Group, to delay the share sale due to valuation concerns. The...
  • Facebook's Libra cryptocurrency project is facing growing scrutiny from regulators around the world. Photo: Reuters

    FATF chief says closely monitoring Facebook’s Libra

    Sep 11, 2019 9:53am
    The Financial Action Task Force (FATF), the global anti-money laundering watchdog, is closely monitoring developments on Facebook’s planned Libra cryptocurrency, the agency’s new chief said on Tuesday. “We want to make sure that if there are significant...
  • The Hang Seng China Enterprises Index is seen as a fairly good gauge of the overall health of China’s economy. Photo: Reuters

    Are the HSCEI stocks oversold?

    - Sep 10, 2019 11:20am
    Trailing 12 months average price-to-earnings multiple of Hang Seng China Enterprise Index (HSCEI) stocks has slipped below the 8-mark last month, putting it lower than even the levels seen during the depth of the Asian financial...
  • The People Bank of China said the digital currency would strike a balance between allowing anonymous payments and preventing money laundering. Photo: Bloomberg

    China says new digital currency will be like Facebook’s Libra

    Sep 6, 2019 3:05pm
    China’s proposed new digital currency would bear some similarities to Facebook’s Libra coin and would be able to be used across major payment platforms such as WeChat and Alipay, a senior central bank officer said. Mu...
  • Fitch said it expects the “one country, two systems” framework to remain intact, but added that public discontent is likely to persist. Photo: Reuters

    Fitch downgrades HK rating amid protests

    Sep 6, 2019 12:47pm
    Global credit rating agency Fitch Ratings on Friday downgraded Hong Kong’s long-term foreign currency issuer default rating to “AA” from “AA+” following months of unrest and protests in the Asian financial hub, Reuters reports. Hong Kong’s...
  • Global consumer plays are viewed as similar to bonds but with much more attractive valuations. Photo: Reuters

    Re-rating of consumer stocks is just unfolding

    - Sep 5, 2019 3:36pm
    I’ve always been a fan of local firms because they usually have good corporate governance and are not trading at much premium. But lately, I have made the painful decision of reducing some positions to a...
  • Home Credit has a 28 percent share of China's consumer lending market. Photo: Reuters

    IPO candidate Home Credit is big in China small loan market

    - Sep 5, 2019 10:51am
    Petr Kellner, the Czech Republic’s richest man, has filed for an initial public offering in Hong Kong for his consumer lending business Home Credit. The company has an estimated valuation of over HK$100 billion. This would...
  • Australian neobank Xinja offers employees unlimited annual leave, free meals and no dress code on top of stock options. Photo: Xinja

    Perks HK startups might want to consider for young people

    - Sep 4, 2019 12:04pm
    With a political crisis gripping Hong Kong society at the moment, it might not be a good time to talk about job perks for young people, many of whom are preoccupied with battling police in the...
  • Prices of US long-dated treasury bonds have been climbing as the yield continues to drop. Photo: Reuters

    The risks in chasing yields

    - Sep 4, 2019 11:16am
    Buying stocks for dividend was once a common theme. However, the investment culture shifted in recent decades and people began focusing more on speculative activities and the hunt for quick capital gains. But over the last...
  • Facebook's new digital coin Libra is expected to launch in the first half of 2020. Photo: Reuters

    ECB official warns against Libra’s ‘treacherous promises’

    Sep 3, 2019 9:43am
    Facebook’s proposed Libra currency could undermine the European Central Bank’s ability to set monetary policy and Europe should ignore its siren call of “treacherous promises”, ECB board member Yves Mersch said. Libra, a new digital coin...
  • HSBC has been looking to use digital ledger technology to streamline the traditionally paper-based and bureaucratic business of financing trade. Photo: Reuters

    HSBC processes first blockchain letter of credit using yuan

    Sep 3, 2019 9:40am
    Banking giant HSBC said on Tuesday that it has completed the first yuan-denominated blockchain-based letter of credit transaction, Reuters reports. As the first such transaction to use the Chinese currency, this deal marks a step forward...
  • BOE Technology, which saw first-half profits plunge 44 percent, said it faced extremely severe challenges due to trade frictions and an industry downturn. Photo: Bloomberg

    Trade war dents Chinese company profits, investment inflows

    Sep 3, 2019 9:22am
    Some Chinese business sectors reported solid first-half earnings, though a substantial fall in industrial profits and in tepid overseas investment inflows into China’s stock markets show a fallout from the protracted trade war with the United...
  • Investors don't seem to appreciate the unsustainability of the high margins many companies enjoy today, says the author. Photo: Reuters

    As cycle matures, investors are becoming choosier

    - Sep 2, 2019 1:51pm
    Despite global equity markets providing double-digit returns in the first half of the year, investors are discriminating to a degree we haven’t seen in years. At the margin, capital has shifted away from companies that profit...
  • More businesses are said to be deserting the Shanghai free trade zone. Photo: Reuters

    Shanghai free trade zone sputters as capital controls tighten

    Sep 2, 2019 11:38am
    When China launched the expansion of the Shanghai free trade zone (FTZ) recently and announced six new FTZs in July, officials touted the efforts to attract foreign investment and deepen trade ties with neighboring countries. Yet,...
  • Sun Hung Kai Properties has a large property portfolio in China. The first phase of its landmark project at Shanghai Lujiazui is expected to be completed this year. Photo: SHKP

    Sun Hung Kai Properties appoints its first mainlander director

    - Aug 30, 2019 12:02pm
    Hong Kong’s top property developer Sun Hung Kai Properties (00016.HK) has appointed Wu Xiangdong, a former executive director of China Resources Land (01109.HK), as an independent non-executive director. Wu is the first mainlander to join the...