20 January 2018

Capital Markets

  • Momentum investing may continue to work well in Hong Kong this year, given that the market rally is still led by a small group of stocks. Photo: Bloomberg

    Strong counters to continue outperforming this year

    - Jan 12, 2018 12:12pm
    I had recommended two momentum investing portfolios in the middle of last year based on changing market circumstances. Both portfolios have outperformed the market by wide margin, generating returns of 118.4 percent and 75.9 percent compared...
  • Hong Kong stocks extended their rally into the New Year, helping the benchmark index close above the 31,000 level on Tuesday. Photo: Bloomberg

    A strong winter rally above 31,000

    - Jan 9, 2018 6:08pm
    Everything – except the temperature – is up. The stock market is onto its biggest party, with the Hang Seng Index posting gains for the 11th straight session and notching fresh 10-year highs, taking the benchmark...
  • Alibaba founder Jack Ma  made the promise to “seriously consider” listing in Hong Kong after the city's stock exchange proposed changing its rules to allow the listing of companies with dual-class shares. Photo: Bloomberg

    Alibaba to ‘seriously consider’ HK listing, says Jack Ma

    Jan 9, 2018 4:49pm
    Alibaba Group Holding Ltd. will “seriously consider” listing in Hong Kong, founder Jack Ma said, potentially providing a powerful boost to the financial hub which is preparing to allow dual-class share listings. Ma made the comments...
  • MSCI's upcoming inclusion of A-shares in its key indexes is expected to have a deep impact on the investor mix, market structure, and investor mentality in China in the long run. Photo: CNSA

    Foreign investors begin piling into China A-shares on MSCI theme

    - Jan 8, 2018 5:50pm
    More foreign capital is set to flow into China’s A-shares as MSCI prepares to include the stocks in its emerging market index from June. The upcoming move will have profound impact on the investor mix, market...
  • Music streaming company Spotify aims to start trading its shares in March or April. Photo: Reuters

    Spotify files to go public through direct listing

    Jan 4, 2018 9:04am
    Music streaming service Spotify AB has filed to list its shares on the New York Stock Exchange, the Wall Street Journal reports, citing a person familiar with the matter. The “confidential” filing with the Securities and Exchange Commission...
  • The Hong Kong stock market outperformed this year with the blue-chip Hang Seng Index closing at 29,919.15. Photo: Bloomberg

    Wishing for an even better stock market in 2018

    - Dec 29, 2017 4:43pm
    Things could not go any better for Hong Kong’s stock market in 2017. Forget all the doom and gloom you hear about the future of Hong Kong. The Hang Seng Index closed at almost 30,000 (29,919.15,...
  • Citigroup would sometimes display to customers, brokers and supervisors the wrong ratings, such as “buy” instead of “sell”, while in other cases it would display ratings for companies it did not cover, or no ratings at all. FINRA said. Photo: AFP

    Citigroup to pay US$11.5 million over errant stock ratings

    Dec 29, 2017 9:21am
    Citigroup Inc. will pay at least US$11.5 million in fines and restitution to settle charges it displayed the wrong research ratings on more than 1,800 stocks, causing many customers to own shares they never would have...
  • founder Jeff Bezos (right) saw his wealth increase by US$34.2 billion, the biggest gain this year.  Evergrande chairman Xu Jiayin added US$25.9 billion to his wealth, a 350 percent jump from last year. Photos: Reuters

    World’s wealthiest US$1 trillion richer in 2017: Bloomberg

    Dec 28, 2017 9:11am
    The world’s richest people added US$1 trillion to their wealth in 2017, more than four times last year’s gain, as stock markets reached record highs, Bloomberg reports. The Bloomberg Billionaires Index, a daily ranking of the world’s...
  • US markets may climb to new highs next year, providing momentum to other bourses, including Hong Kong. Photo: Reuters

    2018 outlook: Equities to hit new high, property under pressure

    - Dec 22, 2017 12:31pm
    After a strong rally this year, the Hang Seng Index is likely to sustain the strength and hit a record level in 2018. Supporting the bullish outlook is the recovery momentum of the global economy and...
  • Tencent Holdings, Ping An Insurance and Geely Auto are among the best performers on the Hang Seng Index. Photos: Bloomberg, Reuters

    Hang Seng or Tencent Index?

    - Dec 15, 2017 1:05pm
    The festive season is upon us, and Santa Claus has stuffed our Christmas stockings with bulging goodies, that is, in the form of pension investment and stock portfolio returns. Mind you, the best ones are from...
  • Western pop stars such as Katy Perry (left) and Rihanna use Tencent's music platforms to sell music in China. Photos: AFP

    Tencent expected to raise US$1 billion in music unit’s IPO

    Dec 14, 2017 9:22am
    Tencent Holdings Ltd. (00700.HK) is expected to raise at least US$1 billion from an initial public offering of its music division, valuing it at US$10 billion, Bloomberg reports, citing people familiar with the matter. There is...
  • A pedestrian walks past an electronic screen displaying the Hang Seng Index on Nov. 22. Hong Kong's benchmark index climbed above the 30,000 level for the first time in a decade, helped by a Tencent rally. Photo: Bloomberg

    Thanksgiving time for investors

    - Nov 24, 2017 2:53pm
    November has been a very lucky month for Hong Kong, giving us a good reason to celebrate Thanksgiving. Some investors were, however, luckier than others – thanks to what they had bet on, or chose to...
  • A low share price and small weighting puts GE at an increased risk of getting removed from the 30-stock blue-chip Dow index. Photo: Bloomberg

    GE seen at risk of losing its Dow spot as share price falls

    Nov 13, 2017 9:12am
    General Electric Co. faces the risk of losing its membership of the elite 30-stock Dow Jones Industrial Average, given its dwindling share price and the likelihood that its new chief executive will dramatically slim down its sprawling...
  • Peter Woo has picked an easy-to-remember stock code for the spin-off of his shopping malls Times Square and Harbour City. Photos: HKEJ/Bloomberg

    Hot stock codes no one dares to pick

    - Nov 10, 2017 11:22am
    Most of us Hongkongers have something to remember about 1997. Peter Woo, the majority shareholder of The Wharf (Holdings) Limited, knows this. So when his flagship conglomerate decided to spin off its signature shopping malls into a real...
  • China Literature Co-CEOs Liang Xiaodong (L) and Wu Wenhui make a toast during the debut of the company at the Hong Kong Stock Exchange on Wednesday. Photo: Reuters

    China Literature’s stellar debut boosts outlook for HK tech IPOs

    Nov 9, 2017 9:42am
    The smashing success of Tencent’s e-book unit China Literature (00772.HK), which saw its shares surge more than 80 percent on their first day of trading on Wednesday, is expected to encourage more technology firms to list...
  • Investors were buying China Literature shares at HK$77 apiece in the grey market ahead of their trading debut on Wednesday, or 40 percent above the offer price. Photo: Bloomberg

    China Literature IPO raises US$1.1 billion; stellar debut seen

    Nov 7, 2017 6:00pm
    China Literature Ltd. (00772.HK), Tencent Holdings’ online publishing arm, has raised US$1.1 billion in its initial public offering, with the retail portion gathering demand that was 625 times the number of shares on offer, Reuters reports. The...
  • Top officials of China Literature hold a press conference on the company's initial public offering in Hong Kong on Wednesday last week. Photo: Bloomberg

    Why China Literature is going to disappoint

    - Nov 2, 2017 10:29am
    Never would I have thought that there are so many literature lovers in Hong Kong. But, as it turns out, they’re not actually bookworms who would pore over “many a quaint and curious volume of forgotten...
  • Japanese equities typically move in opposite direction to the yen. Photo: Reuters

    Why Japanese equities are a good bet

    - Oct 27, 2017 3:27pm
    With the Nikkei Index reaching a 21-year high, foreign investors’ interest in Japanese equities continues to pick up. Investment in Japanese stocks is typically driven by two things: expectations of a weaker yen, which will stimulate...
  • China Literature, a Tencent unit that is involved in online publishing, has sought a very high valuation, but the IPO is still expected to be a big hit. Photo: AFP

    Why investors smell money in November

    - Oct 25, 2017 11:56am
    Who would have predicted that a year with number “7″ at the end would turn out to be so lucky for investors, given the stock crashes we saw in 1987 and 1997 and the seeds of...
  • Tencent Holdings controls China Literature with a 62 percent stake. Photo: HKEJ

    Tencent’s China Literature eyes US$1.1 bln in Hong Kong IPO

    Oct 23, 2017 11:34am
    China Literature Ltd., China’s largest online publishing and e-book company, launched an initial public offering for up to US$1.1 billion on Monday, seeking funds for acquisitions and to expand its digital publishing business, Reuters reports. Tencent...

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