Date
24 March 2019

Finance

  • The Hang Seng Index posted a rally of less than 15 percent in 10 of the cases when a golden cross showed up, implying the upside may not be that much. Photo: HKEJ

    Is ‘golden cross’ a good buy signal for HK equities?

    - Mar 22, 2019 12:38pm
    The Hang Seng Index has been on a strong rebound since the beginning of this year. The 250-day moving average has started to edge up after falling for nearly nine months. If the uptrend continues, the...
  • China's financial regulators need to come up with clear-cut policies to promote the healthy growth of fintech industry, says online peer-to-peer (P2P) lender Dianrong. Photo: Reuters

    China online lender Dianrong blames govt for its woes

    Mar 19, 2019 9:28am
    Chinese online peer-to-peer (P2P) lending platform Dianrong, which is laying off staff and shutting stores, has blamed the government for its troubles, saying the absence of clear-cut policies is proving to be a heavy burden, Reuters...
  • The Worldpay-FIS deal will create a powerhouse in banking and payments infrastructure industry. Photo: Reuters

    US fintech titan FIS buys payments firm Worldpay for US$35 bln

    Mar 19, 2019 9:04am
    US-based Fidelity National Information Services (FIS) has agreed to buy Worldpay for about US$35 billion, in the biggest deal to date in the fast-growing electronic payments industry, Reuters reports. “Scale matters in our rapidly changing industry,”...
  • If the merger talks between Deutsche Bank and Commerzbank succeed, it will lead to creation of Europe’s third largest lender. Photo: Reuters

    Deutsche Bank, Commerzbank go public on merger talks

    Mar 18, 2019 9:20am
    Deutsche Bank and Commerzbank confirmed on Sunday that they are in talks about a merger, prompting labor union concerns about possible job losses, Reuters reports. Germany’s two largest banks issued short statements following separate meetings of their...
  • Swiss giant UBS was banned from leading initial public offerings in the city for a year, and fined HK$375 million. Photo: AFP

    SFC fines top investment banks US$100 million for IPO failures

    Mar 15, 2019 10:30am
    Hong Kong’s securities regulator banned UBS from leading initial public offerings (IPOs) in the city for a year, while fining it and rivals including Morgan Stanley a combined US$100 million for due diligence failures on a...
  • Many US investors have opted to park their cash in money market funds despite the equities rally. Photo: Reuters

    Caution prevails despite the market bounce

    - Mar 14, 2019 11:20am
    The S&P 500 index has rallied around 20 percent in less than three months, marking its biggest climb since September 2009. It seems the US stock market has regained the growth momentum. However, it’s quite odd...
  • Ping An said full-year profit rose 20.6 percent to 107.4 billion yuan (US$16 billion) in 2018, boosted by strong growth in its core life and health insurance business. Photo: Bloomberg

    Ping An in 10 bln yuan share buyback after profit beats forecast

    Mar 13, 2019 2:22pm
    Financial giant Ping An Insurance Group Co. of China Ltd. (02318.HK, 601318.CN) said it will return up to 10 billion yuan (US$1.5 billion) to shareholders through its first share buyback, after posting a forecast-beating jump in...
  • HKEx chief Charles Li is said to be pushing mainland regulators to include the new Shanghai tech board into the Stock Connect scheme. Photo: HKEJ

    Benefits of including new tech board firms in stock link

    - Mar 13, 2019 10:41am
    China’s new tech board is set to become a reality this year, as preparations are underway in full swing for its launch. Since this new science and technology innovation board is considered a flagship project, regulators...
  • The emergence of new mobile payment methods has put a lot of pressure on the Hong Kong-born Octopus to defend its market share. Photo: HKEJ

    Octopus needs to review its overall strategy

    - Mar 12, 2019 12:12pm
    Hongkongers now have various ways to pay for goods and services – cash, credit card or Octopus card. But when they shop online at Alibaba’s Taobao or Tmall, they prefer to use the Alipay mobile wallet...
  • As of now, demand projection for 5G is largely based on hope. But that won’t discourage people from speculating on the theme. Photo: Bloomberg

    5G could be the trigger for next tech bubble

    - Mar 12, 2019 11:32am
    With many enabling conditions, the stage appears set for another tech bubble in the stock markets. Liquidity is ample, and we now also have a likely trigger for the next round of hype-driven rally: 5G. Talking...
  • CITIC Securities advised clients to sell the shares of People’s Insurance Company (Group) of China Ltd., saying they are “significantly overvalued” and have a downside of more than 50 percent. Photo: CITIC Securities

    Mainland investors over-react to negative brokerage call

    - Mar 12, 2019 10:11am
    China’s A shares slumped 4.4 percent on Friday last week, after the nation’s largest brokerage issued a rare “sell” rating. CITIC Securities Co. (600030.CN) advised clients to sell the shares of People’s Insurance Company (Group) of China...
  • The continued inflow of foreign capital could make China's equity market more mature and professional, rather than being overly driven by speculators as it is now. Photo: Reuters

    Foreign capital set to make huge impact on China equity market

    - Mar 11, 2019 12:59pm
    Several A shares have recently hit their foreign ownership limit. Under the existing Stock Connect scheme, foreign ownership ceiling for individual stocks listed on the A-share market is set at 30 percent. The Hong Kong exchange...
  • The financial district of Shanghai. China’s five major banks have so far gotten the regulatory nod to set up wealth management units in the country. Photo: Xinhua

    Foreign banks cheer as China tightens wealth management rules

    Mar 8, 2019 10:53am
    China’s efforts to tighten oversight of its US$20 trillion-plus wealth management industry are spurring foreign banks to speed up plans to enter the local market or expand there, Reuters reports, citing six people involved in the...
  • The prospect of US equities rising further hinges on whether economic growth and corporate earnings can pick up its expansion pace after US-China trade talks wrap up. Photo: Reuters

    Does corporate earnings trend support continued US equity rally?

    - Mar 8, 2019 10:50am
    US equities have outperformed in this round of global stock market rally. Perhaps we should examine whether it is justified by the corporate earnings trend. As of March 1, over 96 percent of S&P 500 constituents...
  • Under the current set-up, Wall Street banks and other massive traders get hefty rebates based on how much business they funnel to exchanges. Photo: Bloomberg

    SEC scrutinizing fairness of stock exchange pricing system

    Mar 8, 2019 8:19am
    The US Securities and Exchange Commission is investigating whether the multi-tiered pricing system used by stock exchanges favors large brokers at the expense of small ones, Reuters reports, citing a person familiar with the matter. Under...
  • China's top banking regulator Guo Shuqing speaks to reporters on the sidelines of the National People's Congress at the Great Hall of the People in Beijing on Tuesday. Photo: Reuters

    China can reach deal with US on financial opening: CBIRC chief

    Mar 6, 2019 9:20am
    China can “absolutely” reach an agreement with the United States on opening up its financial sector, China’s top banking regulator said, even as the country’s commerce minister admitted talks with Washington had been difficult. Speaking on...
  • The China Banking Regulatory Commission last week lowered the subscription threshold for mutual funds to just 10,000 yuan from 1 million yuan. Photo: China News

    Small investors’ direct access to China’s new tech board limited

    - Mar 5, 2019 5:31pm
    Chinese authorities are stepping up preparations for the launch of the new tech board in the second quarter of this year, ahead of the nation’s 70th anniversary celebrations. It appears, however, that the new tech board is...
  • Beijing aims to shore up the financial markets as part of efforts to boost the nation's core competitiveness amid the trade war with the US, observers say. Photo: Reuters

    Why Beijing may be keen on boosting the stock market

    - Mar 5, 2019 12:41pm
    In the wee hours of Saturday, China’s top securities regulator suddenly unveiled the rules for the new science and tech board. Two hours later in the night, the Shanghai Stock Exchange released detailed rules and started...
  • Despite economic challenges, corporate figures have stoked expectations for a fairly decent 2019 and 2020. Photo: Bloomberg

    Back to fundamentals

    - Mar 5, 2019 10:13am
    If we look at the key macroeconomic data published in recent weeks, the word that mostly comes to mind is “disappointing”. The slowdown in the eurozone is evident and more pronounced than what even the most...
  • China’s middle class is growing fast, with 380 million millennials earning and spending more than their parents ever did. Photo: Reuters

    MSCI move and China’s yo-yo market

    - Mar 1, 2019 4:16pm
    The decision by MSCI to increase the weight of China’s A shares in its global benchmarks might seem momentous. After all, the market is huge, with some 3,500 stocks worth about US$8.5 trillion. But the MSCI...

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