Date
25 June 2017

Markets

  • Fosun Group's Hong Kong and mainland-listed shares took a sudden dive after reports that the company is being investigated. Photo: Reuters

    Fosun, Wanda, Anbang and HNA being investigated: WSJ

    Jun 22, 2017 4:59pm
    Banks in China have been ordered to investigate loans made to the country’s top overseas deal makers, the Wall Street Journal reports. These include Anbang Insurance Group Co., HNA Group, Fosun International Ltd. (0656.HK) and Wanda Group. ...
  • International fund managers may have to acclimatize to A shares’ trading environment, much like how the Mongol warriors were 'tamed' by the ancient Han. Photo: Reuters

    China’s MSCI inclusion: What next after the milestone?

    - Jun 21, 2017 1:29pm
    China’s entry into the MSCI global indices is a historic milestone. The MSCI inclusion is small, but slightly higher than expected. China’s efforts in re-regulating stock trading suspension, the expansion of the Stock Connect scheme and...
  • China's A-shares will initially comprise just 0.7 percent of the MSCI Emerging Markets Index, but the weighting could increase over time if the country enacts further reforms. Photo: Reuters

    MSCI adds China A-shares to global benchmark

    Jun 21, 2017 7:52am
    China’s domestic equities will join MSCI Inc.’s benchmark indices after three failed attempts, a landmark step in the nation’s integration with the global financial system, Bloomberg reports. The decision, announced by the New York-based index compiler...
  • If MSCI rejects China’s inclusion again, that could likely provoke speculative buying by red-faced market players in China. Photo: Reuters

    Be cautious ahead of MSCI decision on China A-shares

    - Jun 20, 2017 2:57pm
    The market sentiment in China’s A-share market has been abnormally depressed in the first half of 2017. With retail investors’ pessimism over the market, they are still worrying about further yuan depreciation. In my view, that...
  • HKMA chief executive Norman Chan says homebuyers should brace for an increase in mortgage rates in the near future. Photo: HKEJ

    Hong Kong raises base rate to 1.5% after Fed hike

    Jun 15, 2017 11:49am
    The Hong Kong Monetary Authority (HKMA) raised the base rate by 25 basis points to 1.5 percent. The increase follows a 25-basis-point increase in the target range for the US federal funds rate. HKMA chief executive...
  • The bigger story in the tech sector should be SWANNS, which refers to SoftBank, Western Digital, Jack Ma's Alibaba, Nintendo, Nvidia and Samsung. Photo: Bloomberg

    SWANNS: Where great opportunities in tech sector lie

    - Jun 14, 2017 11:46am
    The tech-laden Nasdaq Composite Index declined 1.8 percent last Friday after Goldman Sachs warned of a “valuation air-pocket” in five leading tech stocks dubbed as FAAMG (Facebook, Amazon, Apple, Microsoft and Alphabet). The Goldman report says...
  • With growth in the US and China set to moderate in the coming months, big caps will continue to outperform. Photo: Reuters

    Outlook for 2H17: An idiot’s guide to China’s Nifty-Fifty run

    - Jun 12, 2017 10:44am
    Risk appetite is running high, and it’s the big caps that are outperforming, instead of the small caps. And cyclical assets such as commodities and US financials have corrected significantly. It is perplexing. The new financial regulation...
  • Fully eight years into this cycle, S&P 500 Index revenues have struggled to keep pace with the economy as a whole. Photo: Reuters

    Two reasons to skip the market’s joy ride

    - Jun 2, 2017 10:30am
    There are two primary reasons to be cautious about investing fresh capital in today’s richly valued US equity markets. The first reason is shaky pricing power — or top-line growth — for companies in the S&P...
  • As off-balance-sheet risks are brought back gradually, Chinese banks' risk provision and funding costs are expected to rise. Photo: Reuters

    Re-pricing risks under new China bank regulations

    - May 26, 2017 1:06pm
    Hong Kong market risk premium is approaching historic lows, hinting at euphoric sentiment.  Historically, when the risk premium was at the current level or lower, the market subsequently sank into crises, such as the ’94 LatAM...
  • HKMA chief executive Norman Chan says prospective buyers must be mindful of their ability to cope with the potential risk that may arise from possible changes in the property cycle. Photo: HKEJ

    HKMA announces prudential measures for property mortgage loans

    - May 19, 2017 6:09pm
    The Hong Kong Monetary Authority (HKMA) has issued guidelines to banks on a new round of prudential measures for property mortgage loans. The measures include: 1. Raising the risk-weighted floor by 10 percent to 25 percent...
  • Wall Street's post-election rally may be coming to an end as President Donald Trump finds himself in a widening political scandal in Washington. Photo: Reuters

    US stocks tumble as ‘Trump trade’ unwinds

    May 18, 2017 9:07am
    US equities fell sharply on Wednesday as political turbulence in Washington prompted investors to unwind previous bets based on hopes for tax and other reforms from the Trump administration. The Dow Jones Industrial Average tumbled 1.78...
  • London is the European Union's biggest financial market by far, but will be outside the bloc from 2019. Photo: Bloomberg

    EU looks to build alternative to London for capital market

    May 18, 2017 9:01am
    Brexit has forced the European Union to rethink its flagship capital markets union (CMU) project and urgently look for ways to create an alternative financial market to London, according to a draft EU document seen by...
  • Relative weakness of BMW shares reflects the potential threat the European firm faces from new-generation car makers such as Tesla. Photo: BMW

    What European equities cannot offer

    - May 16, 2017 4:05pm
    European equities have suddenly become popular for various reasons. First, political risk in the region has mitigated. Second, economic numbers are improving, particularly those of Germany. Third, low valuations have made those markets attractive. With lots...
  • During the 15-month-long market rally in Hong Kong, there were only 10 trading days when more than 70 percent of the stocks posted gains simultaneously on the same day. Photo: Reuters

    How to build a portfolio with market leaders

    - May 12, 2017 11:42am
    Breaking the 25,000-points mark recently, Hong Kong’s Hang Seng Index has jumped 36 percent since February 12 last year, when the benchmark tumbled to a low of 18,319 points. For investors, the gain exceeds 40 percent...
  • The sudden selloff wiped out about US$4.1 billion in the Huishan Dairy's market value. Photo: Bloomberg

    Huishan Dairy shares plunge 85 percent, trading halted

    Mar 24, 2017 4:33pm
    Shares of China Huishan Dairy Holdings Co. Ltd. (06863.HK) fell by a record 85 percent in Hong Kong before the company suspended trading. The sudden crash wiped out about US$4.1 billion in the company’s market value,...
  • The 10 biggest listings of Chinese firms in Hong Kong last year saw cornerstone investors – nearly all mainland entities – buying 50 to 78 percent of shares on offer. Photo: Reuters

    China tells cornerstone investors in HK IPOs to bring home funds

    Mar 23, 2017 8:49am
    China has made it mandatory for mainland cornerstone investors in Hong Kong initial public offerings to repatriate funds when they sell their shares, a rule likely to hit smaller, cornerstone-reliant listings, Reuters reports, citing people with knowledge...
  • China Hongqiao says it has overtaken Russia's RUSAL as the world’s largest aluminum producer. Photo: Bloomberg

    China Hongqiao fights back short-seller via southbound trading

    - Mar 13, 2017 4:59pm
    The stock trading link with Shanghai and Shenzhen has brought tremendous benefits to the Hong Kong stock market. China Hongqiao Group Ltd. (01378.HK), for example, has defeated a short-seller as capital flowed from southbound cross-border stock...
  • Amin Nasser says an overhang in world oil supplies is expected to ease in the first half of 2017. Photo: Reuters

    Saudi Aramco to list locally and abroad next year

    Mar 7, 2017 7:59am
    Oil giant Saudi Aramco will be listed locally and abroad in the second half of 2018, and the process is going according to plan, Reuters reports, citing chief executive Amin Nasser. The IPO is the centerpiece...
  • Snap co-founders Evan Spiegel (center) and Bobby Murphy ring the opening bell of the New York Stock Exchange as NYSE president Thomas Farley applauds on Thursday. Photo: Reuters

    Snap surges on debut as Wall Street retreats

    Mar 3, 2017 7:48am
    Shares of Snap Inc. continued to defy doubts about the company’s early-stage business model and slowing user growth, jumping nearly 50 percent in their first day of trading on the New York Stock Exchange. The owner...
  • Snap priced 200 million shares at US$17, above its stated range of US$14 to US$16 a share. Photo: Reuters

    Snap valued at US$24 bln after raising US$3.4 bln in IPO

    Mar 2, 2017 8:07am
    Snap Inc. priced its initial public offering above its target range, raising US$3.4 billion as investors set aside concerns about its lack of profits and voting rights for a piece of the hottest tech IPO in...

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