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Hong Kong Exchanges & Clearing (0388)
05-09-2014, 04:19 PM.
Post: #11
RE: Hong Kong Exchanges & Clearing (0388)
SEHK starts its first HK$-yuan dual currency listing. SGX has started its S$-yuan dual currency listing few months ago, in Aug 2014, on YZJ stock.

It is an important step to get ready for the China financial liberalization i.e. the opening of capital account on equity market

(not vested in HKEx, but in SGX)

Hong Kong Airlines files for first HK$-yuan dual currency IPO
05 Sep 2014 11:15
[HONG KONG] Regional carrier Hong Kong Airlines International Holdings Ltd filed on Friday for the city's first-ever dual currency initial public offering, looking to tap a massive pool of yuan deposits in local banks.

The IPO would be a landmark deal for Hong Kong, which is keen to bolster its position as a global hub for trading in the Chinese currency. It established a framework for shares to also trade in yuan in 2011.
...
Source: Business Times Breaking News
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10-09-2014, 06:31 AM.
Post: #12
RE: Hong Kong Exchanges & Clearing (0388)
Last week the Shanghai Stock Exchange and Hong Kong Stock Exchanges signed the agreement to set up Shanghai - Hong Kong Stock Connect for cross border trading which is expected to commence in about 6 months time.

The HKEX shares ( 00388.HK) seems to have gained momentum from the lows at about $115 seen last March to $182 level now. Just wondering if the optimism during next 6 months can take the share price upto $230 ?

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10-09-2014, 09:58 AM.
Post: #13
RE: Hong Kong Exchanges & Clearing (0388)
(10-09-2014, 06:31 AM)soros Wrote: Last week the Shanghai Stock Exchange and Hong Kong Stock Exchanges signed the agreement to set up Shanghai - Hong Kong Stock Connect for cross border trading which is expected to commence in about 6 months time.

The HKEX shares ( 00388.HK) seems to have gained momentum from the lows at about $115 seen last March to $182 level now. Just wondering if the optimism during next 6 months can take the share price upto $230 ?

Testing for the Shanghai-HK Connect has already started and trading will start in mid-Oct, not in 6 months time. Besides HKEX, stockbrokers and A share ETFs have already appreciated quite a fair bit.

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10-09-2014, 10:02 AM.
Post: #14
RE: Hong Kong Exchanges & Clearing (0388)
(10-09-2014, 09:58 AM)mohican Wrote:
(10-09-2014, 06:31 AM)soros Wrote: Last week the Shanghai Stock Exchange and Hong Kong Stock Exchanges signed the agreement to set up Shanghai - Hong Kong Stock Connect for cross border trading which is expected to commence in about 6 months time.

The HKEX shares ( 00388.HK) seems to have gained momentum from the lows at about $115 seen last March to $182 level now. Just wondering if the optimism during next 6 months can take the share price upto $230 ?

Testing for the Shanghai-HK Connect has already started and trading will start in mid-Oct, not in 6 months time. Besides HKEX, stockbrokers and A share ETFs have already appreciated quite a fair bit.

Yes, I am sitting tight for the event Big Grin

(not vested, but vested in SGX)
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“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡

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10-09-2014, 10:06 AM.
Post: #15
RE: Hong Kong Exchanges & Clearing (0388)
Qn: Will there be a SSE-SGX in the future??
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10-09-2014, 10:24 AM.
Post: #16
RE: Hong Kong Exchanges & Clearing (0388)
(10-09-2014, 10:06 AM)opmi Wrote: Qn: Will there be a SSE-SGX in the future??

Ans: I am anticipating the link in near future. It is highly dependence on the success of upcoming SSE-SEHK link.

(biased view since SGX vested)
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“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡

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10-09-2014, 10:56 AM.
Post: #17
RE: Hong Kong Exchanges & Clearing (0388)
Source: http://www.sharesinv.com/
Link: http://www.sharesinv.com/articles/2014/0...l-benefit/

The Shanghai-Hong Kong Linkup, Which Shares Will Benefit?
DR CHAN YAN CHONG | 05 SEPTEMBER 2014

The economic situation in Europe is taking a turn for the worse, yet the Ukrainian crisis has put the European Union (EU) in a dilemma — it has to crank up economic sanctions against Russia, but Russia is certain to retaliate with counter-sanctions.

Rumours have been circulating in the market that the European Central Bank will follow the example of the US in implementing quantitative easing and printing massive amount of money. One of the most important reasons for the grim situation in Europe today is its contradictory economic policies. The Euro debt crisis a few years ago was started by the indiscriminate spending of several Southern Europe governments, which led to the collapse of the demand for the bonds they issued. As part of the EU, these governments could not print their own money. Faced with imminent bankruptcy, they therefore had to accept Germany’s demand to implement austerity measures in their countries in exchange for German economic aid. However, these austerity measures had led to a serious economic recession today, and unemployment rate had increased substantially.

Despite the negativity that is shrouding the Western markets, not all is lost. With the linkup between Shanghai and Hong Kong bourses set to be launched in another month, Hong Kong and international investors can buy a selection of shares listed on the Shanghai Stock Exchange. Similarly, investors in mainland China can use this linkup to buy some of the shares listed on the Hong Kong Stock Exchange. This has given rise to the term “Shanghai-Hong Kong linkup concept stocks” in the Hong Kong stock market, which refers to shares that stand to benefit from the trading of Hong Kong and Shanghai shares offered through the linkup.

Regulations limit Chinese investors to invest only in large and medium-sized enterprises on the Hang Seng Index (HSI) through the linkup. Even so, this includes well over 200 counters from a wide variety of industries. So, which of these counters can look forward to a rally on the back of the linkup fever? Which of them are the hot favourites of the Chinese investors?

There are basically two types of linkup concept stocks — stocks that stand to gain a healthy profit from the Shanghai-Hong Kong bourse linkup, which would likely translate into higher share prices; and stocks that would attract Chinese investors when the linkup goes live. As a result of such demands, the share prices of these counters will likely rise too. Although both types of stocks could push prices up, the former type of concept stocks is more lasting and stands to gain long-term benefits.

Foremost among counters that stand to profit from the Shanghai-Hong Kong linkup is the Hong Kong Stock Exchange (HKEx, 0388), followed by securities and brokerage stocks, and banking stocks. Shares that will attract Chinese investors and speculators include large blue chip counters with strong Hong Kong identity, and a number of mid-cap H-shares which are priced well below their A-shares counterparts.

Since the Shanghai-Hong Kong linkup was announced, many of these linkup concept stocks have gone through a few rounds of tumultuous speculations. Yet, the only consistent winner is the HKEx, which saw its share price rising steadily. Furthermore, some influential finance houses have predicted that HKEx shares will rise above HK$200. HKEx is in a brilliant strategic position, for it enjoys an effective monopoly with no other competition in Hong Kong. Regardless of the direction of trade on the Shanghai-Hong Kong linkup, the HKEx will make money, which makes it a better bet than brokerage stocks. The daily and total limits of the bourse linkup are calculated on a net amount basis, which is good from the perspective of the HKEx. There is still a large amount of funds in the market, and they are all waiting for a chance to pounce. In 2007, before Hong Kong shares could be traded on the mainland, the mere news of a possibility of such a linkup sent the share price of HKEx rocketing from HK$96 to HK$259 in just two months.

The Hong Kong stock market is different from the Chinese stock market, mainly because the driving force in the Hong Kong stock market is international financial institutions. When these influential players want to move the HSI, the prices of HSI component stocks with higher weightage will surely rise. That is why HSI giants like China Mobile (0941) and AIA (1299) will rise. I believe these big wigs will eventually cause share prices of HSBC Holdings (0005) to rise too.

Investors should always view investing in penny stocks as a sideline activity. Your main focus should always be the blue chips. On the day the Shanghai-Hong Kong linkup was announced, a number of second- and third-tier H-shares which were priced well below their A-shares counterparts saw a sudden surge which lasted only for one day. Those that have real staying power are the traditional big blue chips, which the media also referred to as “old economy stocks”. I believe that in the midst of the hype and interests over new economy stocks, these “old economy stocks” will be favoured by Chinese investors.

The Morgan Stanley Capital International (MSCI) Hong Kong index hit a record high, which goes to show the HSI’s failure to reach any new highs can be laid at the feet of the China H-shares. The immediate question now is, should we go for those H-shares that have fallen behind, or do we continue to pursue Hong Kong stocks that are testing new highs?

The Bank of China in Hong Kong stands head and shoulder above the other three state-owned Chinese banks in Hong Kong in terms of its size. Naturally, it has become the clearing bank for the Shanghai-Hong Kong linkup. Hong Kong shares will be transacted in Hong Kong dollars, which means when Chinese investors buy Hong Kong shares, they pay in Renminbi (RMB) which will then be converted into Hong Kong dollars and vice versa. Between a buy and a sell, two RMB and Hong Kong dollar exchanges would have taken place. This represents a huge profit potential for the clearing bank that is shadowed only by that of the HKEx. On the other hand, investors in Hong Kong who do not have any RMB will still need to exchange for it when they buy any Shanghai A-shares, but they could do at any bank and are not restricted to the Bank of China.

Even though the Shanghai-Hong Kong linkup does not affect the Singapore stock market directly, the Shanghai Composite Index hitting a new 15-month high will certainly give a boost to Singapore-listed China stocks, so investors may want to put some money there. The Straits Times Index is facing considerable resistance, but there are no indications of a sudden plunge either. Be patient, wait for the index to find its direction, and do not ever sell out prematurely. In the meantime, you may want to examine Hong Kong stocks further for a possible ride on the Shanghai-Hong Kong linkup fever.

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15-09-2014, 05:13 PM.
Post: #18
RE: Hong Kong Exchanges & Clearing (0388)
Hong Kong is well-prepared for the upcoming event in Oct.

(not vested)

Hong Kong to lift residents' yuan conversion limits before stock connect scheme
15 Sep 2014 11:10
[HONG KONG] Hong Kong will lift the daily conversion limits for residents now capped at 20,000 yuan (US$3,257) before a landmark scheme to connect stock markets between Hong Kong and Shanghai gets under way next month, its central bank chief said on Monday.

While it has allowed non-residents to convert unlimited daily quantities of yuan since 2012, it caps the conversion limit for residents primarily because it wanted to prevent rampant currency speculation among residents, analysts said
...
Source: Business Times Breaking News
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24-09-2014, 06:54 AM.
Post: #19
RE: Hong Kong Exchanges & Clearing (0388)
http://www.businesstimes.com.sg/specials...h-20140924

PUBLISHED SEPTEMBER 24, 2014
MONEY MATTERS
HK-Shanghai market through train on track for Oct launch
The event could boost trading in H-shares and A-shares

Arbitrage opportunity: This will be driven by price convergence as a unified market for Shanghai stocks (above) and Hong Kong stocks nears. There are 86 companies listed in both Hong Kong and Shanghai/ Shenzhen. - PHOTO: BLOOMBERG
THE People's Republic of China is preparing to take a major step towards the creation of a "One China" (ie, one-price) equity market. Announced in April, the so-called through- train of Hong Kong/Shanghai mutual stock market access (MMA) appears to be on track for a mid-October launch, and it could add fuel to a continuation of the bull market in stocks traded in Hong Kong (H-shares).
While the H-share rally continues to derive support from a pick-up in China's business cycle and implementation of Third Plenary reforms, MMA would also raise the probability that stocks traded on China's mainland exchanges (A-shares) could emerge from their four-year bear market.
Although the launch itself only includes select Shanghai Stock Exchange (SSE) issues and none traded on the Shenzhen Stock Exchange, there is high broker interest in the programme, particularly on the mainland, according to China Securities Regulatory Commission (CSRC) data.
Initially, daily MMA trading volumes will have limits on the value of such trades on the SSE and Hong Kong Exchange (HKEx), but we think the restrictions will likely be eased over time, and could eventually be lifted as a precursor to a unified China equity market.

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17-10-2014, 09:22 PM.
Post: #20
RE: Hong Kong Exchanges & Clearing (0388)
All focus their attention on the event...

(not vested)

All preparation for HK-Shanghai stock scheme is in place; HKEx

HONG KONG – Hong Kong Exchanges & Clearing (HKEx) said today (Oct 17) it is ready for a landmark trading link with Shanghai, but did not give details on when it would begin, amid expectations that an announcement would be made later in the day.

“All our preparations are in place, there’s no timetable, we’re waiting for the (Chinese) regulator to announce at a time they consider appropriate”, HKEX chief executive Charles Li told reporters.

The trading link, hailed as a milestone to open up China to global investors, is expected to start on Oct 27, Reuters has reported.
...
http://www.todayonline.com/business/all-...place-hkex
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“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡

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