Hong Kong Exchanges & Clearing (0388)

[weijian]

Hong Kong Exchange's new CEO is put on cleanup duty

His predecessor, Charles Li, oversaw a doubling of revenue during his decade in charge through acquisitions, loosened listing rules and, most importantly, trading links with mainland China.
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In a review released last year after the former IPO vetting co-head was arrested for bribery, the SFC discovered "numerous ambiguities" in the Chinese Wall between its listing and business divisions.
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David Webb, a former HKEX director, investor and corporate governance activist, is skeptical the bourse will institute any meaningful reforms.

https://www.businesstimes.com.sg/stocks/...eanup-duty

[weijian]

During the past 12 months with Hong Kong  citizens  exposed to  covid virus infection attack  , the HKEX  shares have  traded up from $250 levels to around $480 level  with  sky high  PE  at  52. 

During  past  5 years ,  EPS has risen from $4.76 ( 2016) to $9.1 ( 2020 )

It must be too overvalued  for  valuebuddies.

From its lofty valuations of PE~50, HKEX's fortunes has reversed path and it is currently trading at 52weeks low. On hindsight, it's ATH seems to roughly coincide with China Mega Tech's ATH (represented by HSI TECH ETF)

Stock Connect has been the absolute game changer. North bound traffic is still consistently 4x of Southbound and this means that the Motherland is benefiting more than less. The control and grip hold of the CCP will ensure that the Stock Connect is the mutually beneficial and proven way to move capital in a controlled and transparent manner.

With China-US conflict only going to exacerbate in the coming years, there will be a strong tail wind of homecoming companies.

HKEX looks like a simple enough bet, if one wants to bet on China. The only question would be its valuations because "casinos" don't come cheap.

[weijian]

Hong Kong’s share of Asian IPOs slumps to over 2-decade low

Even with an extra US$4 billion in IPO proceeds, Hong Kong’s share of the Asia total – currently US$108 billion – would still be the smallest since 1999. The city has always commanded a double-digit grasp of the Asia IPO market, with an average of 26 per cent from 1995 to 2021, the data show.

In contrast, IPOs on mainland Chinese exchanges have boomed this year, bucking the global slowdown. With firms having raised US$74.5 billion in Shanghai and Shenzhen this year, they account for 69 per cent of Asia’s IPO haul, the highest on record.

https://www.businesstimes.com.sg/garage/...decade-low

[weijian]

Just when we thought the STI was really bad. In the last 6 months, HSI has probably overtook STI as an index that went nowhere in the last decade.

Hong Kong: Battered stocks hit 11-year low

HONG Kong’s flailing stock market tumbled on Monday (Oct 3) to its lowest point in more than a decade as fears for China’s economy deepens this year’s investor rout.

The Hang Seng Index shed 0.83 per cent, or 143.32 points, to close at 17,079.51.

But crucially it crossed below the 17,000 level in the afternoon, touching a nadir not seen since October 2011 and the aftermath of the global financial crash and during the eurozone debt crisis.

https://www.businesstimes.com.sg/stocks/...1-year-low