HKEX 0388

[winston]

not vested

HKEx jumps on fund-sale plan

Hong Kong Exchanges and Clearing (0388) shares jumped up to HK$6.10, or 3.35 percent, yesterday on reports that the local exchange may set up a fund distribution platform that allows more securities firms to sell fund products.

HKEx, together with Hong Kong Securities Association and Hong Kong Investment Funds Association, are discussing whether the idea is workable.

It has already received support from the Securities and Futures Commission, Oriental Daily News reported.

The plan calls for HKEx to collect fees from fund firms that distribute products through the platform, including mainland funds coming through the Mutual Fund Recognition Scheme.

Currently, about 80 percent of funds in the SAR are sold through banks, and only a few large brokers that are doing wealth-management business can sell funds.

HKEx shares closed at HK$186.80, up 2.69 percent and ending a three-day drop.

They had slumped 40 percent from a peak in May amid worries over sliding income due to scarce trading volume in the current bearish market and a possible delay of Shenzhen Hong Kong Stock Connect.

Source: The Standard HK

[winston]

Charles Li: LME Not to Press China on Opening Warehouses

Charles Li, the chief executive in HKEX (00388.HK), mentioned in an interview with Reuters that LME decided to hold back for now on pressing China for permission to set up LME warehouses in the country.

He added that HKEX will consider a cooperation with Shanghai Futures Exchange or other institutions.

Source: AAStocks Financial News

[winston]

not vested

HKEX 1Q-3Q Earns 76% More to $6.425B; 3Q Profit Up 81%

HKEX (00388.HK) announced its results for the nine months ended 30 September 2015. EBITDA rose 66% yearly to $8.139 billion.

Net profit surged by 76% to $6.425 billion, with basic earnings per share of $5.44 (up 73%).

For the third quarter, the group's revenue and other income amounted to $3.747 billion, up 51.64% yearly.

Net profit leaped 81% to $2.33 billion, more than Deutsche Bank's expectation of $1.72 billion.

In the first three quarters, the company's revenue and other income increased by 49% yearly to $10.6 billion. During the period, the group's operating expenses added 13% yearly to $2.461 billion.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>M Stanley Downgrades HKEX (00388.HK) to Underweight with Target Slashed to $165

Morgan Stanley believed the continuous sluggish turnover in Hong Kong stocks began to take effect on the profit of HKEX (00388.HK).

Comparing to the market forecast for EPS in 2016 at $7.2, the stock is now trading at 28x P/E.

Although the market believed the valuation was reasonable, the market forecast might be trimmed due to the declining turnover in this quarter.

Morgan Stanley downgraded the company to Underweight from Equalweight with target price cut to $165 from $180.

The broker believed Shenzhen-Hong Kong Stock Connect will benefit HKEX in the long term but it can hardly boost HKEX's earnings in the short term.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>C Suisse Cuts HKEX Earnings Estimates by 1%-2% on Weak Nov Volumes

Credit Suisse noted that HKEX (00388.HK)'s ADT in November dropped by 5% monthly or 4% yearly to $75 billion, lower than the broker's full-year average expectation of $108 billion.

In December, the ADT was only $76 billion so far.

The broker decided to lower HKEX's earnings forecast by 1%-2% on its weak trading volume. However, its target price of $170 and the investment rating of Underperform were remained.

In the broker's opinion, HKEX's ADT in 2016 will reach $93 billion.

Source: AAStocks Financial News

[winston]

Yuan contracts soar

Charles Li Xiaojia, chief executive of Hong Kong Stock Exchanges and Clearing (0388), said yesterday its yuan currency futures contracts hit a record open interest level of 29,352 contracts on Monday, due to the recent volatility in the mainland currency.

Li wrote on his blog that the futures, launched by the local bourse operator in 2012, saw turnover hit 6,425 contracts the second highest ever. This was worth a notional value of US$625 million (HK$4.85 billion) on January 7.

HKEx plans to roll out a range of new yuan- risk-hedging products, including currency-pair and precious metals products in both yuan and the Hong Kong dollar.

"With price fluctuations in the offshore market more intense than in the onshore market nowadays, there is more need for exchange rate risk management in the offshore market," Li wrote.

He said the yuan exchange rate and interest rate products will "not only help the yuan further internationalize and gain influence, but also build the yuan ecosystem in Hong Kong."

The SAR can benefit from the weakened yuan by providing a variety of debt products "as a weakening currency is in the borrower's favor."

Source: The Standard

[winston]

Hong Kong Bourse Seeks to Expand China Ties in 3-Year Plan

by Kana Nishizawa

Vision to connect mainland China with world, Charles Li says

HKEx will review rules to boost competitiveness as listing hub

Source: Bloomberg

http://www.bloomberg.com/news/articles/ ... r-strategy

[winston]

Time to Sell Shares of Hong Kong Stock Exchange

Trading volume at the island state’s biggest bourse, Hong Kong Exchanges & Clearing, doesn’t justify the rich price.

By SHULI REN

Source: Barron's Asia

http://www.barrons.com/articles/time-to ... 1454736586

[winston]

not vested

HKEx: No Appetite For China, Citi Cuts To Sell

By Shuli Ren

Citi Research this morning lowered its rating to Sell with a price target of 140 Hong Kong dollars, from HK$320 previously

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... s-to-sell/

[winston]

<Post-Result>Brokers' Latest Ratings & TPs to HKEX (00388.HK) (Table)

HKEX (00388.HK) announced that 2015 net profit was HK$7.956 billion, up 54% yearly; basic EPS equaled HK$6.7; final dividend was HK$2.87 and total dividend for the full year was HK$5.95.

Numerous brokers lowered the target prices of HKEX. Market cut the ADT forecast of HK stocks, indicating challenges to its operating outlook this year.

11 brokers' ratings and target prices to HKEX are consolidated as follows:

Broker/Rating/Target price (HK$)

Daiwa/Buy/232
BOCOM International / Long-term Buy /206
Macquarie/Outperform/200
HSBC/Buy/200
UOBKayHian/Hold/170->177
Bank of America Merrill Lynch/Underperform/189->166
Deutsche/Hold/226->155
Morgan Stanley/Underweight/152
Goldman Sachs/Sell/148->144
Citigroup/Buy->Sell/320->140
BNP Paribas/Underweight/132.63

Source: AAStocks Financial News