HKEX 0388

[winston]

not vested

HKEx profit soars on huge TRADING volumes

Bumper TRADING volumes boosted the first-quarter profit of the local bourse operator by a third to HK$1.58 billion from HK$1.18 billion a year ago.
It indicates the exchange is moving toward a "new normal" level of activity that could make it a top global STOCK MARKET.

The 34 percent profit surge was in line with expectations.

Shares of Hong Kong Exchanges & Clearing (0388) have so far soared by 65 percent this year after the establishment of a landmark TRADING link with the Shanghai bourse that has sent trading volumes and revenues through the roof.

The bourse operator did not declare a dividend. Average daily turnover on the exchange more than doubled to HK$113 billion in the first four months of the year from a year earlier. Analysts say the new level of trading could be sustained as the SAR becomes more linked to China.

That boost "will propel Hong Kong from being a non-core market for global equity investors to potentially one of the world's core MARKETS," Jonas Kan, analyst at Daiwa Capital Markets, wrote in a note.

Shares worth US$413 billion were TRADED in the January-March period.

HKEx said profits also rose after fees were raised in January on the LONDON Metal Exchange, which it bought in 2012.

Source: REUTERS

[winston]

not vested

Growing HKEx turns 15

Hong Kong Exchanges and Clearing (0388) celebrated its 15th anniversary of listing yesterday, with its boss noting its value has risen more than 40 times over the years.

Chairman Chow Chung-kong said the exchange has grown from a local one into a global group across multiple-asset classes.

Shares of the exchange closed at HK$283.60 yesterday, 40 times higher than the opening price of HK$7 in 2000.

Chief executive Charles Li Xiaojia wrote in his Chinese version blog that "15 years old is the most beautiful youth in life and a period with most dreams."

The current vision for HKEx is to "reshape the global market landscape and connect China with the world."

It seeks to build a robust and sustainable offshore yuan ecosystem, eventually developing Hong Kong into China's premier offshore wealth management center.

To prosper in a new landscape in which China has been shifted from a large net importer of capital to one of the world's largest exporters of capital, Li wrote: "We must serve four customers: Chinese issuers, foreign investors, Chinese investors and overseas issuers."

Shenzhen-Hong Kong Stock Connect will be launched in the second half of the year, said Chow, denying any delay.

Preparation work for the link will be finished by July and the link may be launched three to four months after an official announcement, Li said.

He emphasized that the scheme is progressing as planned and there are no changes or new problems facing the scheme.

Local media yesterday reported that September 14 and September 21 are the most likely launching dates.

Only 500 to 700 companies among the 1,714 companies listed in Shenzhen may be covered in the initial stage, Hong Kong Economic Journal reported.

The companies covered should have market capitalization of more than 20 billion yuan (HK$24.9 billion).

The daily quota for Southbound, the channel through which mainland investors buy Hong Kong stocks, will be 40 billion yuan.

Source: The Standard HK

[winston]

not vested

Growing HKEx turns 15

Hong Kong Exchanges and Clearing (0388) celebrated its 15th anniversary of listing yesterday, with its boss noting its value has risen more than 40 times over the years.

Chairman Chow Chung-kong said the exchange has grown from a local one into a global group across multiple-asset classes.

Shares of the exchange closed at HK$283.60 yesterday, 40 times higher than the opening price of HK$7 in 2000.

Chief executive Charles Li Xiaojia wrote in his Chinese version blog that "15 years old is the most beautiful youth in life and a period with most dreams."

The current vision for HKEx is to "reshape the global market landscape and connect China with the world."

It seeks to build a robust and sustainable offshore yuan ecosystem, eventually developing Hong Kong into China's premier offshore wealth management center.

To prosper in a new landscape in which China has been shifted from a large net importer of capital to one of the world's largest exporters of capital, Li wrote: "We must serve four customers: Chinese issuers, foreign investors, Chinese investors and overseas issuers."

Shenzhen-Hong Kong Stock Connect will be launched in the second half of the year, said Chow, denying any delay.

Preparation work for the link will be finished by July and the link may be launched three to four months after an official announcement, Li said.

He emphasized that the scheme is progressing as planned and there are no changes or new problems facing the scheme.

Local media yesterday reported that September 14 and September 21 are the most likely launching dates.

Only 500 to 700 companies among the 1,714 companies listed in Shenzhen may be covered in the initial stage, Hong Kong Economic Journal reported.

The companies covered should have market capitalization of more than 20 billion yuan (HK$24.9 billion).

The daily quota for Southbound, the channel through which mainland investors buy Hong Kong stocks, will be 40 billion yuan.

Source: The Standard HK

[winston]

vested

<Research Report>G Sachs Downgrades HKEX to Sell with Target Cut to $220

Goldman Sachs, in a report, downgraded HKEX(00388.HK) to Sell from Neutral and the EPS was cut by 8-19%.

The research house slashed the target price by 26% to $220, representing 18% potential downside.

It is believed that the possibility of a Bull case type velocity print in the upcoming 12 months is minimal.

The cash equity ADT in 2015-17 (excluding Southbound trading) is expected to be $130/142/150 billion (against $149/176/197 billion earlier).

Goldman Sachs pointed out that recent volumes have been weak and they now expected 2Q15/ April to mark the quarterly/ monthly peak for volumes in near term.

The stock is now trading at 39x/ 34x FY15-16 P/E, which is 32x higher than the average since 2010.

The risk-reward is skewed to the downside with more downside than upside.

The broker's EPS forecast is 13%/11%/3% lower than Bloomberg consensus.

HKEX is scheduled to unveil its 2Q15 results on 12 August and Goldman Sachs expected the EPS to be $1.93.

Source: AAStocks Financial News

[winston]

vested

<Research Report>G Sachs Downgrades HKEX to Sell with Target Cut to $220

Goldman Sachs, in a report, downgraded HKEX(00388.HK) to Sell from Neutral and the EPS was cut by 8-19%.

The research house slashed the target price by 26% to $220, representing 18% potential downside.

It is believed that the possibility of a Bull case type velocity print in the upcoming 12 months is minimal.

The cash equity ADT in 2015-17 (excluding Southbound trading) is expected to be $130/142/150 billion (against $149/176/197 billion earlier).

Goldman Sachs pointed out that recent volumes have been weak and they now expected 2Q15/ April to mark the quarterly/ monthly peak for volumes in near term.

The stock is now trading at 39x/ 34x FY15-16 P/E, which is 32x higher than the average since 2010.

The risk-reward is skewed to the downside with more downside than upside.

The broker's EPS forecast is 13%/11%/3% lower than Bloomberg consensus.

HKEX is scheduled to unveil its 2Q15 results on 12 August and Goldman Sachs expected the EPS to be $1.93.

Source: AAStocks Financial News

[winston]

vested

Another HKEx drop brings plunge to 22pc

Hong Kong Exchanges and Clearing (0388) fell another 5.5 percent yesterday, marking a drop for eight straight trading days and a loss of 22 percent during the period.
Shares closed at HK$222 after dipping as low as HK$218.40.

Daily turnover for the first six months rose 99 percent from a year earlier to HK$125.34 billion, HKEx said.

The capital raised through initial public offerings in the first half year soared 58 percent to HK$129.38 billion.

Daiwa suggested investors seize the bargain-hunting opportunity and gave the stock a target price at HK$336. The investment bank maintains a "buy" rating on the stock.

It holds positive views on the local exchange's mid-term profit and believes market volatility brings opportunities for long-term investors.

Source: The Standard

[winston]

vested

Another HKEx drop brings plunge to 22pc

Hong Kong Exchanges and Clearing (0388) fell another 5.5 percent yesterday, marking a drop for eight straight trading days and a loss of 22 percent during the period.
Shares closed at HK$222 after dipping as low as HK$218.40.

Daily turnover for the first six months rose 99 percent from a year earlier to HK$125.34 billion, HKEx said.

The capital raised through initial public offerings in the first half year soared 58 percent to HK$129.38 billion.

Daiwa suggested investors seize the bargain-hunting opportunity and gave the stock a target price at HK$336. The investment bank maintains a "buy" rating on the stock.

It holds positive views on the local exchange's mid-term profit and believes market volatility brings opportunities for long-term investors.

Source: The Standard

[winston]

China contagion poses risk to HKEx growth strategy

BY MICHELLE PRICE AND SAIKAT CHATTERJEE

http://www.reuters.com/article/2015/07/ ... orethebell

[winston]

not vested

<Research Report>C Suisse Maintains HKEX at Underperform in Face of Multiple Headwinds

Credit Suisse, in its report, reiterated that HKEX(00388.HK) is in face of a multitude of downside risks which may lead to the decline of share price.

The target price remained unchanged at $188 and the rating maintained at Underperform.

Such headwinds include
1. the significant slow down in volumes last week following recent market volatility;
2. possible cut of fees by the Shanghai Stock Exchange by 30% from 1 August;
3. weak volumes of LME; and
4. the possible delay of MSCI inclusion with market actions taken by the Mainland government recently.

However, being a global gateway to China's capital markets, HKEX has strong longer-term growth potential.

Source: AAStocks Financial News

[winston]

not vested

HKEx interim hits record high by Jennifer Li

The stock connect with Shanghai helped the Hong Kong Exchanges and Clearing (0388) to post record high interim profit, but turmoil in A share markets could delay a similar link with Shenzhen.

Net profit in the first half soared 73 percent from a year back to HK$4.10 billion, allowing the world's largest listed stock market operator to raise the interim dividend to HK$3.08 per share, up 68 percent from a year back.

HKEx saw revenue surge 48 percent to HK$6.85 billion. Diluted earnings per share hit HK$3.47.

The bourse said clearing and settlement fees jumped 59 percent, thanks to 99 percent growth of average daily turnover after the stock link last November.

The A-share rally also stimulated interest in Hong Kong-listed shares and many financial products, further pushing up HKEx's earnings. Increase in initial public offerings also raised income.

HKEx, for the first time, offered 5 percent discount on the subscription price for shareholders who choose to receive scrip alternative instead of interim dividend.

Chief executive Charles Li Xiaojia said the discount is offered to keep more cash for future development..

HKEx, meanwhile, said recent A-share turmoil may delay "some big projects" as mainland regulators are working hard to stabilize the markets.

"HKEx has completed all the technical works in July [for the stock connect with Shenzhen] but hasn't received approvals from the regulators," Li said. "When regulators are busy on a certain issue, they can't focus on other things."

On China central bank's move to devalue the yuan, Li said "the timing is unexpected," yet it was in accordance with the rationale of yuan internationalization. Local stocks may be impacted by this new uncertain factor in the short term, , Li said.

The significant earnings, however, missed analysts' estimates.HKEx shares fell 4.17 to HK$207.00 yesterday.

Source: The Standard HK