HKEX 0388

HKEX 0388

Postby winston » Fri May 09, 2008 10:40 am

Hong Kong to allow foreign firms to list via depository receipts soon - report
05.08.08, 10:03 PM ET

HONG KONG (Thomson Financial) - Hong Kong Exchanges & Clearing (HKEx), the local stock and futures market operator, will allow overseas firms to list in the city through the issue of depository receipts within weeks, the South China Morning Post reported on Friday.

The move is designed to help Hong Kong maintain its position as a regional capital-raising hub even after most locally-listed mainland firms have returned to the Chinese bourses.

Companies from the emerging markets of Russia, Vietnam, India, Israel, the Middle East and Kazakhstan are likely to be interested, the newspaper cited HKEx chairman Ronald Arculli as saying.

Arculli also said the groundwork for the scheme was complete and it will be announced by the end of May.

The Hong Kong depository receipts (HDRs) will work in a manner similar to the American depository receipts, with foreign companies appointing a custodian to hold the shares being traded offshore.

The depository receipt route will make it cheaper for firms to list in Hong Kong, the SCMP said.

Arculli expects it to attract companies that are otherwise discouraged or prohibited from listing overseas by their domestic regulators.
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Re: HKEX 388

Postby winston » Fri May 09, 2008 2:39 pm

BROKER CALL - HKEx cut to 'underweight', target 120 hkd - Morgan Stanley

HONG KONG (XFN-ASIA) - Morgan Stanley has downgraded Hong Kong Exchanges and Clearing (HKEx) to 'underweight' from 'equalweight', and cut its target price on the stock to 120 hkd.

The brokerage said while the stock has bottomed out, turnover on the stock exchange has not, with 80-90 bln hkd a day, implying that earnings progression in 2008 will be weak.

HKEx is the operator of the local stock exchange.

"The stock is currently trading at 27 times 2008 estimated earnings compared with the global exchanges' average of 19-20 times. This 40 pct premium is unsustainable, in our view," Morgan Stanley said.

It expects the stock to lose recent momentum, unless turnover picks up.

The brokerage added that the probability of liquidity inflow from the mainland in the near term is less likely now amid weakness in Chinese markets.

At 3.13 pm, HKEx shares were down 4.7 hkd or 3.03 pct at 150.2.
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Re: HKEX 388

Postby winston » Wed May 14, 2008 8:35 am

RPT-PREVIEW-HKEx to post strong Q1, but 2008 outlook dim

By Joseph Chaney HONG KONG, May 9 (Reuters) - Hong Kong Exchanges and Clearing Ltd <0388.HK> should post a strong rise in first-quarter profit, but Asia's largest listed bourse faces an uncertain 2008 as China's turbulent markets and fears of a U.S. recession weigh.

Hong Kong, the primary market for many of China's corporate titans, has seen a slowdown in new lisings, with 10 companies withdrawing or postponing a combined $7.68 billion worth of IPOs so far this year.

But turnover is rising due to sustained investor interest in China's booming economy.

Listing fees account for less than 20 percent of HKEx's revenue, but the IPOs of the past two years have boosted Hong Kong's main board market value to roughly HK$16.8 trillion ($2.1 trillion), as of end-March, up over 25 percent from the same period last year.

"The overall market activity is still hot," said Benny Yu, an analyst at VC Brokerage.

"The key reason is that last year so many Chinese enterprises listed in Hong Kong which increased the total number of shares, and the market cap increased faster than anywhere in the world," Yu added. "International investors are allocating more resources to the market over time."

Hong Kong Exchanges and Clearing Ltd (HKEx) is expected to report on Wednesday that first-quarter net profit rose 56-84 percent to HK$1.44-HK$1.7 billion ($184.8-$218.1 million), according to two analyst forecasts.

Regional rival ASX Ltd , the Australian stock exchange, said its earnings in the fiscal first half ended in December rose 35 percent on record trading volumes, while Singapore Exchange's first-quarter profit was its smallest in four quarters.

TURNOVER UP, SHARES DOWN Despite HKEx's earnings growth, daily turnover in Hong Kong fell 26.6 percent from the previous quarter to average HK$98.4 billion ($12.6 billion) in the first quarter, as investors grew anxious about the fallout from a U.S. recession and China's benchmark Shanghai index <.SSEC> slumped by a third.

The Hang Seng Index <.HSI> tumbled 18 percent in the quarter, while HKEx's shares slide 40 percent.

HKEx is trading at 24.6 times forward earnings, compared with ASX's 16.5 times multiple and SGX's roughly 21 times.

Yu said turnover levels probably peaked in the fourth quarter of last year, and he expected HKEx to post an annual drop in profits of up to 7 percent.

HKEx plans to expand its offerings to protect its growth rate, initiating trading in new asset classes including carbon emissions, gold futures, and depositary receipts.

And HKEx officials are scouring the globe for new listings, taking 30 trips last year to countries including Japan, Malaysia, Taiwan, Vietnam, India, Kazakhstan, Russia, Mongolia and the United States.

It also wants to lure sovereign wealth funds to the city, Ronald Arculli, chairman of Hong Kong Exchanges and Clearing, told Reuters this month.

Last year, Chinese officials killed any immediate hopes of a boost from a proposed landmark programme to let mainland citizens invest directly in Hong Kong securities.

Officials said China needed new laws to regulate the outflow of funds, and a timeline for the scheme had yet to be set.
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Re: HKEX 388

Postby winston » Wed May 14, 2008 2:13 pm

UPDATE 1-HK Exchanges Q1 net surges 79 pct as turnover rises

(Adds details) HONG KONG, May 14 (Reuters) - Hong Kong Exchanges and Clearing <0388.HK>, Asia's largest listed bourse, reported a 79 percent jump in first-quarter earnings on Wednesday thanks to higher turnover due to sustained investor interest in China's booming economy.

But the bourse of Hong Kong, the primary market for many of China's corporate titans, faces an uncertain 2008 as China's turbulent markets and fears of a U.S. recession weigh.

The city has seen a slowdown in new lisings, with 10 companies withdrawing or postponing a combined $7.68 billion worth of IPOs so far this year.

Listing fees account for less than 20 percent of HKEx's revenue, but the IPOs of the past two years have boosted Hong Kong's main board market value to roughly HK$16.8 trillion ($2.1 trillion), as of end-March, up over 25 percent from the same period last year.

HKEx earned HK$1.65 billion ($211.6 million) in January-March, compared with HK$922.5 million a year earlier, it said in a statement.

Two analysts polled by Reuters had forecast a profit of HK$1.44 billion and HK$1.7 billion.

Income rose 63 percent on the year to HK$2.28 billion in the three-month period.

Despite HKEx's earnings growth, daily turnover in Hong Kong fell about 27 percent from the previous quarter to average HK$98.7 billion in the first quarter, as investors grew anxious about the fallout from a U.S. recession and China's benchmark Shanghai index <.SSEC> slid by a third.

The first quarter net came in below the quarterly profit of HK$2.16 billion it made in October-December.

HKEx's results beat those of regional peers: Singapore Exchange posted a 14 percent rise in quarterly earnings to March and Australia's stock exchange, ASX Ltd , reported a 35 rise in its fiscal first-half ended December.

The stock is trading at 24.5 times forward earnings, compared with ASX's 17 times multiple and SGX's roughly 21 times.

Shares in HKEx slid 40 percent in the quarter ended March, lagging an 18 percent loss in the benchmark Hang Seng Index <.HSI> following a global stock sell-off.

Analysts said turnover levels of Hong Kong's stock exchange probably peaked in the fourth quarter of last year, and they expected HKEx to post an annual drop in profits of up to 7 percent.

HKEx plans to expand its offerings to protect its growth rate, initiating trading in new asset classes including carbon emissions, gold futures, and depositary receipts.

The exchange will also allow foreign firms to list on the bourse via depositary receipts from July 1, and its officials are scouring the globe for new listings, taking 30 trips last year to countries including Japan, Malaysia, Taiwan, Vietnam, India, Kazakhstan, Russia, Mongolia and the United States.

Last year, Chinese officials killed any immediate hopes of a boost from a proposed landmark programme to let mainland citizens invest directly in Hong Kong securities.

Officials said China needed new laws to regulate the outflow of funds, and a timeline for the scheme had yet to be set.
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Re: HKEX 388

Postby winston » Fri May 16, 2008 3:32 pm

BROKER CALL - HKEx target price cut to 150 hkd - Credit Suisse

HONG KONG (XFN-ASIA) - Credit Suisse cut its target price for Hong Kong Exchanges & Clearing Ltd (HKEx) to 150 hkd from 158 while keeping a "neutral" rating on the local bourse operator, citing shrinking average daily turnover (ADT).

"The recent flat-lining of average equity turnover and a slight softening of derivative trading volumes provide little scope for major earnings revisions to drive the stock," the Swiss bank said.

The shares are trading at 26 times its forecast 2008 earnings and with trading activities in the local bourse stuck in a tight range, "we do not believe HKEx is compelling", it said.

Credit Suisse raised its 2008 earnings per share estimate for HKEx by 16 pct to 5.91 hkd but cut its estimate for 2009 and 2010 by 4 pct and 8 pct, respectively, to 6.36 hkd and 7.07.

Shares of HKEx traded down 0.6 hkd or 0.4 pct to close the morning session at 149.6.
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Re: HKEX 388

Postby winston » Fri May 16, 2008 3:38 pm

BROKER CALL - Hong Kong Exchanges kept 'buy'; HDRs seen as H2 catalyst - Nomura

HONG KONG (XFN-ASIA) - Nomura International Hong Kong said it has kept its "buy" recommendation on Hong Kong Exchanges & Clearing Ltd (HKEx), citing its strong first-quarter results and a fresh catalyst in the second half of this year which can drive up earnings growth.

HKEx reported on Monday that its first-quarter net profit surged 78.8 pct to 1.65 bln hkd from 923 mln a year earlier as stock trading turnover increased and investment income grew.

The Japanese house noted that the local stock exchange operator's results were boosted as average daily turnover (ADT) in the first quarter rose 87 pct year-on-year to 98.7 bln hkd.

The ADT has been averaging 80-90 bln hkd since February of this year, it said.

"But we see potential upside in ADT in the second half this year upon the introduction in July of Hong Kong depository receipts (HDRs), which will provide an alternative listing route for overseas issuers and an additional source of income," it said.

At morning close, HKEx was down 0.60 hkd or 0.4 pct at 149.60.
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Re: HKEX 388

Postby winston » Tue Jun 24, 2008 11:30 am

Vested.

Hong Kong Exchanges & Clearing (0388.HK: Quote, Profile, Research, Stock Buzz) slid 2.4 percent to HK$120.10 after Morgan Stanley said it expected shares in the bourse operator to fall sharply in the next 15 days. Morgan Stanley said if the average daily turnover on the exchange stayed at HK$65 billion, the fair value of the stock would fall to less than HK$100 per share.
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Re: HKEX 388

Postby sl2008 » Sat Jun 28, 2008 7:42 pm

Tips HKEx(00388)
Date 18 / 6
Source Dao Heng Securities
HKEx (388, $125.3) 6M Target $120.0 HOLD

Event: Market turnover fell to $48.3bn yesterday, the lowest in 2008.

The average daily market turnover (ADMT) declined from $98.7bn in 1Q08 to $86.3bn in April, $76.3bn in May and $67.8bn month-to-date. We have lowered our ADMT forecast for 2008 to $85.2bn, representing a drop of 3% from $88.2bn in 2007.

In 1Q08, HKEx registered a 79% yoy increase in net profit to $1,650mn.

In 2Q08, we estimate ADMT at $77.5bn representing a drop of 21% qoq. Total fund raised by IPOs is estimated at $18bn, down 46% from $33bn in 1Q08.

Given the decrease in ADMT, we forecast net profit in 2Q08 will fall 7% yoy or 20% qoq to $1,315mn. Net profit for the first half of 2008 will grow 27% yoy to $2.96bn.

Net profit for 2008 is estimated at $5.88bn (EPS $5.48, down 5% yoy). Prospective dividend yield will be 3.9% based on a consistent payout ratio of 90%.

We expect analysts to downgrade earnings forecast and target price for HKEx after the release of interim results. Consensus target price is $162.

The counter is presently trading at a prospective PER of 23x that we think is still expensive relative to 20x for global peers and 15x for the Hang Seng Index.

Maintain a HOLD on HKEx with a 6-month target price of $120 based on 22x 2008 EPS.
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Re: HKEX 388

Postby winston » Sat Jun 28, 2008 10:54 pm

Vested

Citigroup To Be First Sponsor Of Hong Kong Depositary Receipts
June 26, 2008: 10:28 PM EST

HONG KONG -(Dow Jones)- Citigroup Inc. (C) said Friday it will begin offering services to companies planning to issue Hong Kong Depositary Receipts, the first sponsor for overseas firms seeking to list in the city through the financial instruments.

Stock exchange operator Hong Kong Exchanges & Clearing Ltd. (0388.HK) said in May it would allow foreign companies to list their stock on the city's bourse in the form of depositary receipts from July 1.

Citigroup is already a sponsor for Asian companies seeking to raise funds through American Depositary Receipts in the U.S. and Global Depositary Receipts, which mainly involve listings in London.
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Re: HKEX 388

Postby winston » Thu Jul 03, 2008 7:44 am

Vested.

Date set for gold futures
Katherine Ng

Thursday, July 03, 2008

The Hong Kong Exchanges & Clearing (0388) will start offering its first commodity product - gold futures - from October 20.

The operator of Asia's third largest bourse said yesterday gold futures will trade on the Hong Kong Futures Exchange - its wholly-owned subsidiary - according to the HKEx.

Three types of bullion contracts will be available - spot, one-month and two-month futures. All contracts will be traded in US dollars.

Each contract will cover 100 troy ounces of gold valued at US$93,200 (HK$726,960), as calculated based on the closing price of gold in London on June 30. Minimum fluctuation will be set at 10 US cents per troy ounce.

An exchange fee and cash settlement fee of US$1.3 will be levied on every contract on both the buy and sell sides. But the exchange fee will be waived during the first three months.

A commission of US$0.1 will be allowed per contract but there will be an exemption in force during the first six months. Bullion contracts will be traded from Monday to Friday between 8.30am and 5pm.

"The relaunch of the gold futures was in response to the renewed interest in gold, and we aim to develop an Asian liquidity pool according to the commonly used London gold standard," said Calvin Tai, head of derivatives market at HKEx.

Individual and institutional investors, bullion dealers, banks and corporations related to the gold business can take part, HKEx said.

Meanwhile, sources said the Securities and Futures Commission was not actively involved in advising the Hong Kong Mercantile Exchange to set up operations. The new exchange has applied for a license with the SFC.
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