More Hong Kong companies say business impacted by mass protests

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#71
Interesting comparison between the Hong Kong and other stock markets in terms of IPOs:

https://www.scmp.com/business/banking-fi...ial-public

Worth noting Singapore's rather pathetic showing in this context.

Two big IPOs in Hong Kong since the troubles started. However, there is a degree of momentum in terms of the time required to set up and launch an IPO, so it will be interesting to see if IPOs do actually drop off in Hong Kong. I know that a lawyer friend involved in IPOs in Hong Kong is much less busy this year than last, and that there is probably a lag effect that is not captured in the article.
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#72
Singapore's IPO market is likely to continue lagging its regional peers, as capital becomes increasing free to move globally.

So the government is trying to do some catch-up to remain the regional leader in financing by liberalising her own banking industry through the introduction of digital banks. The most probably digital bank to lead the Asian markets is probably Grab, if they do win the license, given their huge existing customer base in Asian markets.

It will be interesting to see if protective barriers will be placed to inhibit the cross-border market reach of the digital banks.
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#73
Hong Kong confirms economy fell into recession amid protests, trade war

Reporting by Twinnie Siu, Anne Marie Roantree, Marius Zaharia and Donny Kwok; Editing by Marius Zaharia & Kim Coghill
NOVEMBER 15, 2019 / 6:06 AM

HONG KONG (Reuters) - Hong Kong sank into recession for the first time in a decade in the third quarter, government data confirmed on Friday, weighed down by increasingly violent anti-government protests and the escalating U.S.-China trade war.

The economy shrank by 3.2% in July-September from the previous quarter on a seasonally adjusted basis, revised government data showed, in line with a preliminary reading.

Gross domestic product (GDP) contracted for the second consecutive quarter, meeting the technical definition of a recession.

With no end to the protests in sight, analysts warn the financial and trading center potentially faces a longer and deeper slump than during the global financial crisis in 2008/2009 and the SARS epidemic in 2003.

From a year earlier, the economy contracted 2.9%, also in line with the preliminary reading. The readings were the weakest since the global crisis.

“Domestic demand worsened significantly in the third quarter, as the local social incidents took a heavy toll on consumption-related activities and subdued economic prospects weighed on consumption and investment sentiment,” the government said in a statement.

It revised down its forecast for full-year growth to a contraction of 1.3% versus an earlier estimate of 0-1% growth. That would mark the first annual decline since 2009.

“Ending violence and restoring calm are pivotal to the recovery of the economy. The government will continue to closely monitor the situation and introduce measures as necessary to support enterprises and safeguard,” the government said.

More than five months of political protests have plunged the city into its worst crisis since it reverted from British to Chinese rule in 1997.

Tourists are cancelling bookings, retailers are reeling from a sharp drop in sales and the stock market is faltering, adding to pressure the city is feeling from China’s economic slowdown and the prolonged Sino-U.S. trade dispute.

August retail sales were the worst on record - down 23% from a year earlier - while September’s plunged 18.3%.

Parts of the city were paralyzed for a fifth day on Friday. Transportation disruptions have become common and some shopping malls and other businesses are shuttering early as the unrest escalates.

BUSINESS GATEWAY TO CHINA

Hong Kong is one of the world’s most important financial hubs with total banking, fund and wealth management assets worth more than $6 trillion.

Many businesses with ambitions to expand in China still consider it as a gateway into the mainland, while Chinese firms use it to access international capital, as well as a testing ground and springboard for their global ambitions.

Business activity in the private sector fell to its weakest in 21 years in October, according to IHS Markit, while demand from mainland China declined at the sharpest pace in the survey’s history - which started in July 1998.

More details in https://www.reuters.com/article/us-hongk...SKBN1XO31S
Specuvestor: Asset - Business - Structure.
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#74
US Senate unanimously passes Hong Kong democracy bill in a win for Washington’s China hardliners
https://www.youtube.com/watch?v=ljI9cORvnM8


China threatens ‘forceful measures’ in response to US bill on Hong Kong rights
https://www.youtube.com/watch?v=o7XfZcaNW3w
You can find more of my postings in http://investideas.net/forum/
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#75
Summary in "pictorial" form - Impact of protests on HK's economy & stock mkt : https://www.cnbc.com/2019/12/26/hong-kon...harts.html
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#76
(25-10-2019, 06:55 AM)Dosser Wrote: Interesting comparison between the Hong Kong and other stock markets in terms of IPOs:

https://www.scmp.com/business/banking-fi...ial-public

Worth noting Singapore's rather pathetic showing in this context.

Two big IPOs in Hong Kong since the troubles started. However, there is a degree of momentum in terms of the time required to set up and launch an IPO, so it will be interesting to see if IPOs do actually drop off in Hong Kong. I know that a lawyer friend involved in IPOs in Hong Kong is much less busy this year than last, and that there is probably a lag effect that is not captured in the article.

Many thanks for posting an interesting link!
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#77
(28-12-2019, 03:26 AM)jh_sw Wrote:
(25-10-2019, 06:55 AM)Dosser Wrote: Interesting comparison between the Hong Kong and other stock markets in terms of IPOs:

https://www.scmp.com/business/banking-fi...ial-public

Worth noting Singapore's rather pathetic showing in this context.

Two big IPOs in Hong Kong since the troubles started. However, there is a degree of momentum in terms of the time required to set up and launch an IPO, so it will be interesting to see if IPOs do actually drop off in Hong Kong. I know that a lawyer friend involved in IPOs in Hong Kong is much less busy this year than last, and that there is probably a lag effect that is not captured in the article.

Many thanks for posting an interesting link!

Thats the disconnect between main street and tycoon street in HK. People are struggling to afford rent and homes, landlords and investors laughing to the bank/stock market.

I reckon with the recession hitting Hong Kong and eventual one hitting China soon, we will see a collapse in hang seng.
Virtual currencies are worth virtually nothing.
http://thebluefund.blogspot.com
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#78
(29-12-2019, 05:58 PM)BlueKelah Wrote:
(28-12-2019, 03:26 AM)jh_sw Wrote:
(25-10-2019, 06:55 AM)Dosser Wrote: Interesting comparison between the Hong Kong and other stock markets in terms of IPOs:

https://www.scmp.com/business/banking-fi...ial-public

Worth noting Singapore's rather pathetic showing in this context.

Two big IPOs in Hong Kong since the troubles started. However, there is a degree of momentum in terms of the time required to set up and launch an IPO, so it will be interesting to see if IPOs do actually drop off in Hong Kong. I know that a lawyer friend involved in IPOs in Hong Kong is much less busy this year than last, and that there is probably a lag effect that is not captured in the article.

Many thanks for posting an interesting link!

Thats the disconnect between main street and tycoon street in HK. People are struggling to afford rent and homes, landlords and investors laughing to the bank/stock market.

I reckon with the recession hitting Hong Kong and eventual one hitting China soon, we will see a collapse in hang seng.

I have actually been thinking about going short on the Hang Seng Index for some period of time. 
Have not look into the exact avenues yet though (probably put options on a HSI ETF)

I find it strange that the HSI has been holding up so well despite the protests.
Looking into the components of the index (https://www.hsi.com.hk/eng/indexes/all-indexes/hsi), property stocks have fared the worst so far, relatively speaking.

Wondering if it is a matter of time before the impact hits the other sectors...
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