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Hong Kong Exchanges & Clearing (0388)
01-04-2019, 06:16 PM.
Post: #61
RE: Hong Kong Exchanges & Clearing (0388)
Hong Kong’s stock exchange posts its quietest first quarter since 2009 as blockbuster IPOs looked elsewhere to raise funds
* Equity capital market funds fell 66 per cent in the first quarter to US$6.98 billion, making this the quietest quarter since 2009
* Bolstered by Lyft’s US$2.3 billion IPO last month, Nasdaq jumped to the top of the world’s fundraising ranking with US$4.4 billion raised, surpassing Hong Kong’s US$2.8 billion

Enoch Yiu  
Published: 5:30pm, 1 Apr, 2019

Hong Kong’s stock exchange had the quietest first quarter in a decade, as its fundraising tally suffered from a dearth of blockbuster listings, while the US-China trade war deterred acquisitions and an increasingly stringent approvals process discouraged companies from raising fresh capital.

Total equity capital market funds fell 66 per cent in the first three months to US$6.98 billion compared with last year, according to Refinitiv’s data, the worst quarter since 2009 when the market was roiled by the Global Financial Crisis. The total amount raised in initial public offerings (IPOs) on Hong Kong’s main board and the Growth Enterprise Market (GEM) fell 11.6 per cent to US$2.8 billion.

“The IPO market was quiet in the first quarter as the HKEX tightened its approval of new listings,” said Clement Chan Kam-wing, managing director of BDO, the city’s fifth-largest accounting firm. “It raised more critical questions on the purpose of fundraising while rejecting more applications. This forced many [applicants] to delay their listing plans or opt for other methods to raise capital.”

The first quarter was a bad start to 2019 for Hong Kong Exchanges and Clearings Limited (HKEX), the operator of Asia’s third-largest equity market, as the US$2.3 billion IPO in March by the ride-sharing service Lyft raised Nasdaq’s fundraising tally to US$4.4 billion, surpassing Hong Kong. Shanghai was in third place with US$1.6 billion raised, while the New York Stock Exchange (NYSE) was in fourth place with US$1 billion.

The Listing Committee of the city’s stock exchange, working in a new structure following a 2018 overhaul of Hong Kong’s fundraising regulations, has become more stringent in vetting IPO applications. It rejected 24 listing applications last year, more than sevenfold increase compared with the three in 2017.

“There was a notable increase in the number of applicants rejected in 2018 as part of the listing application process, [due] in large part to the heightened scrutiny applied by the exchange following the publication of the revised Guidance Letter on suitability in April 2018,” said David Graham, HKEX’s Head of Listing in a statement last month.

The committee had already allowed the IPO applications by two of the world’s largest makers of bitcoin mining rigs – Bitmain Technologies and Canaan Creative – to lapse. The two companies sought to raise a combined US$3.4 billion in Hong Kong.

The fund raised from follow-on offering by listed company, including those from right issues, share placement and others, can only raise US$3.1 billion. This is down 81 per cent and is the lowest since 2008, Refinitiv data showed.

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09-05-2019, 05:14 PM.
Post: #62
RE: Hong Kong Exchanges & Clearing (0388)
HKEX posts bright first-quarter profit, boosted by surge in foreign trading of A shares
* The operator of Asia’s third-largest stock market posted a 2 per cent rise in net profit to HK$2.6 billion (US$332 million) in the first quarter

Yujing Liu
Published: 1:31pm, 8 May, 2019

Hong Kong Exchanges and Clearing (HKEX), the city’s stock exchange operator, reported better-than-expected first-quarter earnings, as investment income and surging cross-border trading of mainland Chinese shares boosted revenue.

The operator of Asia’s third-largest stock market reported on Wednesday a 2 per cent rise in net profit to HK$2.6 billion (US$332 million) for the January-to-March quarter from the same period last year, beating the market consensus estimate of a 6 per cent decline, according to analysts polled by Bloomberg.

“It’s a decent result,” said Wong Chi-man, head of research at Hong Kong-based brokerage China Galaxy International Financial Holdings.

“It has a high base of turnover volume in the first half of last year, which is a negative factor to its earnings. But net profit still grew 2 per cent even though average daily turnover declined by 30 per cent,” Wong said.

Revenue rose 3 per cent to HK$4.3 billion, driven by a record income of HK$232 million from the cross-border Stock Connect programme, which allows mainland Chinese and Hong Kong investors to trade in each other’s market, according to the HKEX.

The turnover of northbound trading through the Connect climbed to its highest ever quarterly level for the three month ended in March, reaching a total of 75 billion yuan (US$11 billion) on March 5, HKEX said in the statement.

Investment income also climbed by 27 per cent to HK$372 million, supported by a strong rally in Hong Kong’s stock market. It helped offset a 31 per cent plunge in trading and clearing fees, a result of lower market turnover.

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28-06-2019, 07:52 AM. (This post was last modified: 28-06-2019, 07:52 AM by weijian.)
Post: #63
RE: Hong Kong Exchanges & Clearing (0388)
Hong Kong's IPO Gatekeeper Status Back in Focus After Arrests

The former HKEX official who was arrested is Eugene Yeoh, people with knowledge of the matter said. Yeoh, who resigned from HKEX in May, didn’t respond to calls seeking comments. He co-headed a team that vetted IPO applications and prepared reports for the Listing Committee, a rotating panel of external industry experts that reviews applicants.

Earlier this year, HKEX had received anonymous letters alleging that an unidentified Chinese private equity firm had been raising money from Chinese investors to create shell companies that it planned to list in Hong Kong, a person with knowledge of the matter said. The letters also alleged that a person inside one of the regulators had promised to help make sure the listings were successful, the person said.

It wasn’t clear whether the shell companies ended up going public in Hong Kong, and whether HKEX took any action based on the letters. A spokesman for the bourse declined to comment. Regulators have in recent years tweaked regulations to make it more difficult to list shell companies.

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