not vested
Big tumble looms at HKEx
by Daisy Wu
Analysts expect half-year profit for Hong Kong Exchanges and Clearing (0388) to have tumbled by 50 percent compared to the first six months of last year when interim results are revealed today.
The market operator has already made it known that average daily market turnover slid 46 percent to HK$67.5 billion from 12 months earlier while total funds raised from initial public offerings plunged 66 percent to HK$43.6, with the number of IPOs down by 11 to 40.
Daniel So Pui-fung, a strategist at China Merchants Bank International, said support from the London Metal Exchange to the bottom line of HKEx could not offset the declines. HKEx is the majority owner of the LME.
Also, the London exchange unveiled a package of measures to "strengthen its role as the global liquidity center for metals trading."
There are several components, including reducing charges for position transfers and lowering initial margin rates. The attention grabber, though, is a cut in fees for what the LME terms "short-dated carries," which means anything from a following business day to 15 calendar days on.
And the LME with the World Gold Council and a group of banks and trading firms is starting a venture called LMEprecious, which will introduce centrally-cleared gold and silver contracts in 2017 first half.
Source: The Standard