Mark Crone’s Post

Bankers See Asia Deal Drought Easing as Hong Kong #IPOs Pick Up • More Chinese companies are considering listings in Hong Kong • India share sales have raised a record $49 billion this year After a lean couple of years, bankers in #Asia are seeing signs of a recovery in initial public offerings.   The number of Chinese firms considering #public flotations in Hong Kong is increasing as the benchmark Hang Seng Index heads for its first annual gain since 2019. India has already notched up a record year in terms of #funds raised from share sales, with more planned, while blockbuster #deals are lighting up Tokyo’s #stock #market.   https://lnkd.in/eZ_V_2Xi   #cronelaw The Crone Law Group, P.C.

China's economy has been under tremendous pressure lately, having underperformed and lost $2 Trillion in value since its peak. Consequently, this can be seen by the Hong Kong Stock Market Index HK50 (The Hang Sheng is an index of the 50 largest companies listed on the Hong Kong stock market), which has been in downtrend channel since the January 2023 peak, currently stopping the drop near the October 2022 lows. Analysts are predicting that this could be the capitulation level for long-term investors. China has set a gross domestic product growth of at least 5% in 2024, according to a government report delivered to the national legislature for deliberation. If this goal materializes, we could definitively see these levels on the HK50 as a potential buying opportunity. https://lnkd.in/dCnKCpxG

"Singapore and Hong Kong stand as vital players in Asia's economic landscape, each with its unique role to play," asserts Bonnie Y Chan, CEO of Hong Kong Exchanges and Clearing Limited (HKEX). Divergent Strengths: Singapore's Ascendance: Renowned for wealth management and fintech innovation, Singapore has solidified its status as a global hub. Hong Kong's Equities Dominance: Hong Kong leads in equities trading, bolstered by measures to attract IPOs. Regional Dynamics: Secondary Listings Surge: Regional firms, particularly from Indonesia, are eyeing secondary listings on HKEX due to its depth and liquidity. Changing IPO Landscape: HKEX anticipates a surge in IPOs, notably from Chinese firms in emerging technologies. Capturing Opportunities: Innovative Listing Frameworks: HKEX introduces new listing rules tailored to specialist tech firms, reflecting China's focus on innovation. Broadening Investor Base: HKEX's Stock Connect program taps into China's growing middle-class investor base, facilitating investments from mainland China. Charting Growth: Leveraging China's Potential: HKEX remains positioned to capitalize on its role as a financial conduit between China and the global market. Sustaining Momentum: Despite challenges, HKEX anticipates renewed investor confidence and sustained growth, buoyed by China's resilient economic outlook. “It would be crazy for Hong Kong Exchanges and Clearing Limited (HKEX) not to leverage on our core strength as the main financial platform that connects China to the world, and the rest of the world to China,” Ms Chan said. “That’s a unique feature. No other exchange can offer it.” #Growth #StockExchange #Trade #Finance #Economy #Business #Transformation #Innovation #Resilience #Investment #IPOs I The Straits Times I SPH Media I Brand Hong Kong I Office for Attracting Strategic Enterprises I Kang Wan Chern

"Hong Kong investment product sales rebounded last year on the back of robust investor demand for money market funds and other low-risk strategies due to persistent macroeconomic headwinds. The total transaction amount of non-exchange-traded products sold in Hong Kong was at HK$4.3 trillion (US$551.8 billion) as of end-December 2023, based on new research from the Securities and Futures Commission and Hong Kong Monetary Authority. This reflects a 14% jump from a challenging 2022, when total sales figures were just at HK$3.8 trillion as investors weathered increasingly volatile markets, according to the report, which covers the findings of the two regulators' latest joint survey on fund sales. However, the total sales figure for last year remains well below that of 2020 and 2021, when aggregate transaction amounts surpassed the HK$5 trillion mark." #ignitesasia #HKMA #SFC

Today’s China Top Five: 💡 𝗘𝗧𝗙𝘀 | 𝗛𝗞, 𝗦𝗦𝗘, 𝗦𝗭𝗦𝗘 The HK, Shanghai and Shenzhen stock exchanges announced an expanded list of ETFs included in the Stock Connect program based on new eligibility criteria. The Northbound channel saw 85 new ETFs, while six ETFs were added to the Southbound channel. 💡 𝗣𝗲𝗻𝘀𝗶𝗼𝗻𝘀 | 𝗣𝗲𝗻𝗴𝗵𝘂𝗮 CSRC announced the addition of seven new individual pension products, bringing the total to 193. One product from Penghua was also liquidated. 💡 𝗕𝗮𝗻𝗰𝗮𝘀𝘀𝘂𝗿𝗮𝗻𝗰𝗲 | 𝗡𝗙𝗥𝗔 After bancassurance rules were tightened in 2023, average commissions have reduced across the industry by 30%, alleviating cost pressures for insurance companies. 💡 𝗪𝗲𝗮𝗹𝘁𝗵 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 | 𝗧𝗠𝗧, 𝗗𝗶𝘃𝗶𝗱𝗲𝗻𝗱𝘀 Several leading WM firms have aggressively launched new products in July focusing on technology themes and dividend strategies.   💡 𝗘𝗰𝗼𝗻𝗼𝗺𝘆 | 𝗚𝗗𝗣 China’s economy grew by 4.7% year-on-year in the second quarter, following weak consumption and property market data. The figure fell from the 5.3% growth observed in 1Q24.   #chinatopfive #zbenadvisors #assetmanagement #mutualfunds #ETFs #china #financialnews

  The Hong Kong Economic Times has praised #Pico Far East, noting that despite last year’s interest rate hikes, the company leveraged mainland China’s post-pandemic rebound to exceed pre-pandemic levels of revenue – and even reach a historic high. The Group's annual revenue hit HK$5.3 billion, a year-on-year increase of 17%. Profits were HK$228 million, growing by 40.2%, with a notable dividend yield of 5%.     It is particularly noteworthy that the pandemic in mainland China began to subside in March of last year, with Pico’s main business operations gradually resuming afterwards and significant profits starting to be realised after June. This indicates that the HK$5.3 billion in revenue was primarily earned in the second half of the year. Given this momentum, Pico is expected to achieve even greater success in the coming year.     Read the full column in Hong Kong Economic Times (Chinese only): https://bit.ly/3xrLF8V    #PicoGroup #StockColumnlist 

China’s main Hong Kong stock market index — the Hang Seng — has nearly halved on net selling by foreign investors since its post-COVID peak. With China's elevated debt levels, it signals an impending crisis. Foord Singapore portfolio manager Jing Cong Xue counters the ‘China is not investible’ argument and looks at long-term opportunities for patient investors. Read the full article here: https://lnkd.in/dgbc-9zt Photo by Wang Xiaoqi on Unsplash #finance #investing #china #investments #assetmanagement

China’s main Hong Kong stock market index — the Hang Seng — has nearly halved on net selling by foreign investors since its post-COVID peak. With China's elevated debt levels, it signals an impending crisis. Foord Singapore portfolio manager Jing Cong Xue counters the ‘China is not investible’ argument and looks at long-term opportunities for patient investors. Read the full article here: https://lnkd.in/dKjSbX-B Photo by Wang Xiaoqi on Unsplash #finance #investing #china #investments #assetmanagement

This is quite an interesting post by Foord Asset Management for your perusal. An obvious problem area being any military exercise which result in being ostracized by the rest of the world as has happened with Russia. Also it is very difficult getting any sort of liquidation dividend once a company tanks in China according to certain reports.

Last week raised more questions for investors than answers. ◾ Has the Bank of Japan been getting PR lessons? ◾ What can we learn from the inauguration speech by Mexico’s new President, Claudia Sheinbaum? ◾ Why did risk assets perform sluggishly, despite supportive economic data? For our thoughts on these questions and more, click here - https://lnkd.in/dwA4Y7Xc For more information on Muzinich & Co., visit www.muzinich.com To receive the latest thinking from our investment teams on public and private corporate credit markets, click here - https://lnkd.in/epZwbVYx #GlobalEconomy #BoJ #FinancialMarkets #InvestmentInsights