Date
24 January 2018

Markets

  • The Chicago Stock Exchange executes less than 0.5 percent of US stock transactions. Photo: Wikipedia

    Chicago Stock Exchange sale to China-based group opposed

    Jul 11, 2017 8:07am
    Eleven US lawmakers asked the Securities and Exchange Commission to stop the sale of the Chicago Stock Exchange to a group led by China-based investors, saying the regulator lacks the ability to monitor the foreign buyers,...
  • Analysts said they expect Snap to be volatile in the near term as more than 700 million shares potentially come out of their lock-up period later this month. Photo: Reuters

    Snap shares fall below US$17 IPO price for first time

    Jul 11, 2017 7:48am
    Shares of Snap Inc. slipped below their initial public offering price of US$17 for the first time on Monday, signaling waning investor confidence in the social media company’s growth potential as it faces fierce competition. The...
  • Tencent's online publishing and e-book subsidiary is expected to raise up to US$800 million in a Hong Kong IPO. Photo: Bloomberg

    Tencent’s online publishing unit files for Hong Kong IPO

    Jul 4, 2017 4:27pm
    China Literature Ltd., an online publishing and e-book unit of Tencent Holdings, has filed for a Hong Kong initial public offering that could raise as much as US$800 million. In a stock-exchange filing late Monday, the...
  • The scheme links China's US$9 trillion bond market with overseas investors. Photo: Reuters

    Brisk trade marks launch of China-Hong Kong bond connect scheme

    Jul 3, 2017 3:53pm
    China and Hong Kong launched a long-awaited “bond connect” scheme on Monday that links China’s US$9 trillion bond market with overseas investors, Reuters reports. It’s the latest step in Beijing’s efforts to liberalize and strengthen the...
  • The Four Pillar Industries – financial services, trading and logistics, producer and professional services, and tourism – experienced major changes in the past two decades. Photo: Reuters

    20 years after handover: Four major economic issues we examined

    - Jun 28, 2017 4:03pm
    Time flies when you’re having a full plate, and in the blink of an eye, our group Economics 3.0 has been churning out articles in Hong Kong print media for five years now. On the eve...
  • 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,...

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