籲股東反對錢志健任董事 港交所被鬧爆
選舉前罕有用通函 為「自己人」巴格瑞拉票
http://hk.apple.nextmedia.com/financees ... 8/19562374
A year-and-a-half after launching the HK-SH Connect, it contributes just 1% of the exchange’s revenue
One long-term bear on the stock is Haitong analyst Tony Tanaka, who rates the shares as a Sell.
In a grizzly analysis Tanaka says while “stock connects are highly favorable to HKEx’s equity story, we doubt that they can contribute much to its revenue.”
Investors in China could also be less likely to trade Hong Kong-listed shares if the yuan keeps weakening or if authorities tighten up capital controls.
A bigger problem in Tanaka’s view is that once the Shenzhen connect launches there’s nothing left on the horizon for investors to get pumped about. This means they will shift focus back to the Hong Kong exchange’s other fundamentals, like its trading volumes, which have been looking anemic for a while.
The bourse offers trading in an array of asset classes including derivatives and commodities through the London Metal Exchange, but it still rakes in a big chunk of its revenue through old fashioned buying and selling of stocks.
Based on its recent price the bourse trades at about 33 times forward earnings, slightly above its five-year average. That makes “it by far the most expensive exchange in the world”
Barron’s: Hong Kong Exchange & Clearing (388.Hong Kong) is by no means a cheap stock, trading at almost 34 times forward earnings.
In fact, it is one of the most expensive exchanges in the world. Isn’t it too pricey?
Kwong: We like HKEx for two reasons: absolute and relative.
In the absolute sense, we like financial companies that have monopoly power, rather than those sensitive to interest rates. Apart from HKEx, we also have holdings in other exchanges, although they are not in our top ten. HKEx is also the only clearing house in the prominent financial city of Hong Kong.
In the relative sense, we expect Asia to follow U.S. and Europe’s lead and consolidate its exchanges too. We already see some of that happening. And when M&A’s in Asia really happen, we expect HKEx to take the leadership role.
[Barron’s comment: For instance, Singapore’s stock exchange SGX and Australia’s ASX almost merged and ASEAN’s smaller exchanges are now combining forces to establish a uniform platform.]
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