Ivan Lunegov’s Post

📣 We are delighted to present the Hong Kong Market Review for May 2024: Blue-Chip Stocks Remain On Top. In this market review, we focus on the issuance of derivative warrants (DWs) and callable bull/bear contracts (CBBCs) recovered in May with blue-chip tech and banking stocks driving most of the underlying assets trading activity. 📝 Review Highlights: 1️⃣ Listed structured products in Hong Kong SAR saw a slight revival in May as the Chinese equities edged up most of the time in the month. 2️⃣ SRP data shows that the number of DWs and CBBCs issued in May also rebounded compared with April, with 768 and 2,406 products, respectively. 3️⃣ Hong Kong`s benchmark Hang Seng Index (HSI) is the next-in-line of the most-used underlying for DWs, appearing in 53 products issued in May 30 of which were call warrants, while 23 were puts. 4️⃣ Tencent Holdings (166 products), Alibaba (81), Meituan (75), and Hong Kong Exchanges and Clearing (66) are among the most-used single stock underlying for CBBCs. Feel free to click the link below to read the full article. Stay tuned for our future market reviews, as we continue to provide timely analysis and in-depth insights into the ever-evolving financial landscape! #StructuredProducts #CBBCs #ListedProducts #HongKong #DerivativeWarrants

To enhance Mainland and Hong Kong investors’ understanding of the products in each other’s market, as well as facilitate both markets’ trading and liquidity, the #SFC announced today arrangements to facilitate distribution of research reports of eligible ETFs under Stock Connect. The China Securities Regulatory Commission has clarified that the existing requirements for Mainland securities companies to forward research reports of eligible Hong Kong stocks under Stock Connect on the Mainland can apply to research reports of eligible Hong Kong ETFs under Stock Connect. Reciprocally, the SFC has also set out in its circular issued today the requirements for intermediaries to distribute research reports of eligible Mainland ETFs under Stock Connect in Hong Kong. See details in the press release (https://lnkd.in/gHa_hNTN) and the circular (https://lnkd.in/gzdaMkpZ).

New Opportunities with SGX's Expanded Singapore Depository Receipts (SDRs) Just a week ago, the SGX Group introduced a new suite of Singapore Depository Receipts (SDRs) for top Hong Kong stocks, expanding beyond their initial launch with Thailand. Today, as the Hang Seng Index closed more than 2% higher, and with the ongoing National People's Congress(NPC) Standing Committee, it’s the perfect time to highlight the potential of these SDRs! The 5 Hong Kong SDRs include familiar heavyweights: Alibaba, Tencent, BYD, HSBC, and Bank of China—providing convenient access to Hong Kong’s dynamic market. But why consider SDRs instead of investing directly in the Hong Kong market? Here’s why: 1️⃣ Lower Initial Investment Buying 1 lot (500 shares) of BYD in Hong Kong costs around HKD $147,100, or approximately SGD $24.9k. With SDRs, investors can enter at around SGD $500, thanks to board lots of 100 units, offering greater flexibility for those looking to start small. 2️⃣ Reduced Forex Risk Hong Kong SDRs trade in Singapore Dollars, with dividends also paid in SGD. For investors who prefer to avoid FX fluctuations, SDRs offer a straightforward solution. 3️⃣ Lower Transaction Fees Using our own Moomoo SG fee calculator and ignoring brokerage commissions & platform fees, an SGD 25k investment in BYD’s SDR would cost around SGD $12.23 in fees, while a similar investment in the Hong Kong market would cost approximately HKD $183.47 (Approximately SGD $31). That’s meaningful savings over time! This SDR expansion brings Hong Kong’s leading names closer to the Singaporean investor, opening up new possibilities with convenience, reduced FX exposure, and lower fees. With these new SDRs, investors can now access some of Hong Kong’s biggest names through the comfort of our own local exchange. It’s an accessible way to add well-known Asian companies to your portfolio without needing to navigate cross-border trading complexities. Whether you’re looking to diversify, reduce costs, or manage currency risks, these SDRs offer a tailored solution for both experienced and new investors alike. This is a game-changer for those looking to expand their portfolio beyond Singapore’s borders and into Asia’s thriving markets—all while staying grounded in SGD. Exciting times ahead for SGX and Singapore’s investors! For more market insights on China, do check out out Fund Plus China Market Insights at https://lnkd.in/gn9mJAwD Photo credits : SGX

"The Hong Kong SDR offers several other benefits, including trading on SGX’s securities market during local hours and in the Singapore currency, with dividends also paid in Singapore dollars. Investors can trade the SDRs through local brokers, saving on overseas trading, foreign exchange and management fees. However, local brokerage and exchange fees still apply." Let the market decides if this brings real benefits that will change trading behaviour. #stockexchange #capitalmarkets

China equity ETF investors slightly added positions in the month of May 2024, although the overall market is still lack of directions after liquidity crunch in Jan and Feb. The total net subscription is 9 billion units in May 2024, whereas the Shanghai and Shenzhen Exchange stock indices dropped 0.6% and 2.3% respectively for the month. #investing #ChinaAshares #ChinaEquityMarket

Given their sheer scale and investment opportunities, the US, Japan and China – the world’s Top 3 stock markets by market cap – should all gain a foothold in an investor’s portfolio. Our CIO Wilfred Sit shares his outlook on the three markets and how to view them from a global portfolio perspective. Check out on the full article below: English Version: https://lnkd.in/g2K4C4Xj Chinese Version: https://lnkd.in/gr7fy64k #HangSengInvestment #HSVM #CIOMarketOutlook #ETF #AssetManagement *Investments involves risk (including the loss of capital invested), no one should make their investment decisions based on this content. Before investing, the relevant investment product’s offering document should be read, and independent advice should be sought. Past performance is not indicative of future performance. SFC authorization is not an endorsement or recommendation. This content has not been reviewed by the Securities and Futures Commission and is intended for Hong Kong investors only.

The Hong Kong Stock Exchange (HKEX) has published a Consultation Paper seeking feedback on proposals to reduce the minimum spreads – or tick sizes – of certain Hong Kong securities, including equities, REITs and equity warrants, in two phases. Suggested by the Hong Kong Government-appointed Task Force on Enhancing Stock Market Liquidity, the proposals aim to improve Hong Kong market liquidity and the global competitiveness of the Hong Kong market by lowering bid-ask spreads and transaction costs. Read more: https://cutt.ly/WehMQdXQ #HKEXConsultation #MinimumSpreads #HongKongMarket #StockLiquidity #MarketCompetitiveness #TickSize #BidAskSpread #SecuritiesTrading #HKFinance #MarketReform #InvestorCosts #StockExchange #EquityMarket #FinancialRegulation #MarketStructure

📊 Trade HKG33 on FXCM to access Hong Kong's leading stock market index. The HKG33 Index represents the Hang Seng Futures, offering direct exposure to the Hang Seng Index (HSI), Hong Kong’s primary benchmark stock market index. The HSI tracks the performance of the 50 largest and most liquid stocks listed on the Hong Kong Stock Exchange. The index is further divided into four sub-indices for finance, utilities, properties, and commerce & industry. When you trade HKG33 on FXCM, you harness a powerful tool for investors focused on the dynamic Asian financial landscape. Learn more: https://lnkd.in/d5npi8vi 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

🇨🇳Chinese Index Futures Surge: Traders on the Move 🚀The number of outstanding contracts on the SGX Group FTSE China A50 index has soared to a record 1.2 million since the Golden Week holiday began last Tuesday. 💼"The robust trading volumes reflect global investors managing their China exposure and positioning themselves ahead of the reopening of the cash market," said Ding Meiyan, Head of Equity Derivatives Product Management at SGX Group. 🏦While many global fund managers and strategists remain sceptical about the rally, Hong Kong's Hang Seng China Enterprises Index has climbed 11 per cent this month and is trading at its highest level since February 2022. #trading #market #stock #index

What are the challenges faced by firms in the Asia-Pacific region now that the settlement cycle for trading in North America has been shortened? Some Asian firms are already used to working with shorter settlement times. For example, India moved to T+1 last year and the Hong Kong Exchange’s Northbound Stock Connect (connecting Hong Kong with mainland China) adheres to China’s T+0 settlement timescale. Other jurisdictions are a long way behind. Read our free T+1 Discussion Paper to find out more. https://lnkd.in/exVKtS2W #tradesettlement #t+1 #csdr