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South China Morning Post
2 days ago
- Business
- South China Morning Post
Should Hong Kong follow if London opts for 24-hour stock trading? City brokers are divided
A media report overt the weekend saying the London Stock Exchange Group (LSEG) is considering 24-hour trading has raised questions about whether Hong Kong's bourse could similarly lengthen its transaction hours to cater to a younger generation of trade-anytime investors. The Orion Derivatives Platform (ODP), developed by Hong Kong Exchanges and Clearing (HKEX) for roll-out in 2028, would give Asia's third-largest capital market the capability to 'offer near 24-hour derivatives trading, introduce new products and provide enhanced efficiency,' the HKEX said in April last year. The exchange has not disclosed any plans to change its trading hours, which currently run for 5.5 hours every weekday from 9.30am to 4.00pm, with a one-hour lunch break in between. That put Hong Kong in the middle among global markets: 4 hours in Shanghai and Shenzhen, 5 hours in Tokyo, 6.5 hours in the US and Canada, 8.5 hours in London, and 14 hours in Frankfurt. 'If HKEX expands its trading hours, it would help [boost] the market turnover and attract international investors,' said Kenny Ng Lai-yin, a strategist at Everbright Securities International. 'But there will be a lot of investments needed by the exchange and the brokerage industry, [so] it needs a balance on whether to extend the trading window to 24 hours.' The final day of floor trading on the Hong Kong stock was on October 27, 2017. Trading thereafter was done entirely digitally via scripless dealing. Photo: Edward Wong HKEX declined to comment. The LSEG was weighing its options on whether to introduce 24-hour trading to meet growing demand from small investors, the Financial Times reported on Sunday, citing unidentified sources. LSEG declined to comment when asked by the Post.
South China Morning Post
3 days ago
- Climate
- South China Morning Post
Typhoon Wipha: insurance claims likely to be half of Saola's toll, analysts say
Hong Kong insurers are likely to face smaller claims for damages related to Typhoon Wipha than the previous major hurricane that hit the city two years ago because the impact was less severe this time, according to industry analysts. Advertisement The local unit of Zurich Insurance and some general insurers reported fewer claims on Monday, compared with submissions for compensation related to Typhoon Saola in September 2023, company executives said. The city raised the typhoon warning to its highest level No. 10 for almost seven hours on Sunday when Wipha struck. In total, 33 people were injured and authorities reported 711 fallen trees and flooding cases. 'Based on these figures, the payouts triggered by Wipha are expected to be about half of those resulting from Saola,' said Kenny Ng Lai-yin, a strategist at Everbright Securities International. 'The economic damage caused by Wipha is also expected to be less severe.' The Hong Kong Observatory also raised the No.10 signal when Saola approached the city two years ago. Some 86 people were injured and there were 1,500 reports of fallen trees and 21 flooding cases. 03:16 Typhoon Wipha: Hong Kong emerges with dozens hurt, tens of thousands of travellers frustrated Typhoon Wipha: Hong Kong emerges with dozens hurt, tens of thousands of travellers frustrated Insurers paid out HK$361 million (US$46.3 million) in claims related to Saola, the fourth highest in the local insurance history. They exceeded the HK$325 million payouts related to the outbreak of severe acute respiratory syndrome or SARS in 2003, according to the Insurance Authority.
South China Morning Post
11-06-2025
- Business
- South China Morning Post
China may let Hong Kong-listed firms raise funds in Shenzhen via ‘H + A' IPOs
New Chinese government guidelines allowing Hong Kong-listed companies to seek secondary share listings in Shenzhen could help these companies expand on the mainland while potentially encouraging more Hong Kong share offerings, according to analysts. Unveiled on Tuesday by the Central Committee of the Communist Party and the State Council, the guidelines allow mainland companies with Hong Kong-listed shares (known as H shares), to issue A shares, or yuan-denominated shares, on the Shenzhen Stock Exchange – a reversal of the so-called A + H pathway that mainland-listed companies can use to add dual listings on the Hong Kong exchange The guidelines did not elaborate on which companies would be eligible for H + A listings or the required procedures. The new opportunity would diversify fundraising options for businesses within the Greater Bay Area , the economic region including Hong Kong, Macau and nine cities in Guangdong province, said Wilson Chan Fung-cheung, adjunct professor at City University. It would 'allow businesses within the [bay area] to raise new funds to expand their operations in mainland China, where their brands are more widely recognised', he said. The dual-listing scenario could also tempt more businesses to seek listings in Hong Kong, as a single application could allow them to offer shares in both markets, said Kenny Ng Lai-yin, a strategist at Everbright Securities International in Hong Kong. The new regime could exclude some listed companies, including Tencent Holdings , that use a structure that disallows mainland listings. Many Chinese companies listed in the US and Hong Kong use the set-up, known as the variable interest entity structure, to circumvent Chinese restrictions that prohibit foreign investors from holding assets in certain sectors such as the internet and telecommunications.
South China Morning Post
14-05-2025
- Business
- South China Morning Post
Surprise lay-offs hit Hong Kong's Hang Seng Bank amid HSBC's sweeping revamp
Hong Kong retail lender Hang Seng Bank is laying off staff as part of its parent company HSBC Holdings' aggressive restructuring aimed at enhancing cost-effectiveness and growth. Advertisement The lender, 62.14 per cent owned by HSBC , informed staff in various departments over the past few weeks that they would lose their jobs as part of the restructuring plan, two separate sources told the Post. The affected units were mainly supporting departments such as information technology and corporate communications, as well as index compiler Hang Seng Indexes and some units that were being consolidated in the restructuring, the sources said. The total number of people affected was not disclosed. Some departments lost up to 20 per cent of their staff, while the hardest-hit team was cut in half, the sources said. Wealth management and other key growth areas would not be affected and were instead the focus of expansion, the sources said. The bank is currently recruiting for about 100 vacancies. 'Hang Seng's lay-off plan is a surprise to the market, because the domestic lenders in Hong Kong tend not to have massive lay-offs and tend to keep a stable headcount even during the previous financial crises,' said Kenny Ng Lai-yin, a strategist at Everbright Securities International. Advertisement 'The surprise lay-offs may reflect the challenging operating environment and weak local economy in Hong Kong, as both the retail and property sectors have performed badly. Hang Seng has no choice but to cut down staff headcount to reduce costs.' The lay-offs were expected to continue in the coming two months, the sources said. Remaining employees must apply for their positions again, competing with new external applicants.
Yahoo
09-04-2025
- Business
- Yahoo
Chinese Stocks Bounce Back as Traders Bet on Fresh Stimulus
(Bloomberg) — Chinese stocks climbed for a second day, bucking a worldwide selloff, amid growing speculation that authorities will roll out stimulus to shield the economy from Donald Trump's tariffs. A closely watched gauge of Chinese stocks in Hong Kong (^HSCE) ended 1.4% higher after sliding more than 4% earlier. The onshore CSI 300 ( Index closed up 1%. The moves came as investors shifted their attention to the likely response of Chinese authorities after US tariffs as high as 104% took effect Wednesday. China's top leaders are planning to meet to discuss measures to boost the economy and stabilize capital markets, Reuters reported Wednesday, citing people with knowledge of the matter. 'With the tougher tariffs announced, markets are expecting more government stimulus to boost consumption,' said Kenny Ng, a strategist at China Everbright Securities International. That has encouraged investors to scoop up consumer-driven stocks during the current rally, he said. Mainland Chinese investors bought an unprecedented HK$35.6 billion ($4.6 billion) worth of stocks in Hong Kong on Wednesday. Onshore buyers appear to be unperturbed by the escalating tariff tensions, plowing in more than HK$115 billion since April 2, when the US unveiled the sweeping tariffs. Chinese technology companies were among the most popular stocks during the Wednesday rally. Chipmakers Semiconductor Manufacturing International Corp. ( and Unigroup Guoxin Microelectronics Co. ( soared, buoyed by expectations of AI-related demand. Smartphone maker Xiaomi ( XIACY) closed up 7.7%, its best day since August. Duty-free store operators, which are spared from import taxes, also emerged as big winners. Shares of China Tourism Group Duty Free Corp. jumped 24% in Hong Kong trading. The damage to Chinese companies' earnings from US tariffs is likely to be smaller than the hit to the wider economy, according to Morgan Stanley strategists. Companies in the MSCI China index get only around 3% of their revenue from the US, they wrote in a note. The US tariff on Chinese goods was increased after Beijing retaliated to an earlier announcement. The tit-for-tat moves has raised the specter of a prolonged period of trade tensions that could badly hurt both economies — increasing the importance of a big stimulus push. 'With this trade war, the urgency will be even stronger for them,' said Elizabeth Kwik, investment director of Asian equities at Aberdeen Investments. 'It is already the direction that they were going in anyway, but it's more like a catalyst to speed up and to take some quicker action.' Premier Li Qiang said his country has ample policy tools to 'fully offset' any negative external shocks. Beijing is considering frontloading its stimulus to counter the hit, Bloomberg News previously reported. Chinese authorities haven't immediately responded to the latest tariffs, a departure from previous episodes when Trump hiked duties and officials hit back within minutes. The trade war is providing a test of China's ability to coax the stock market higher during times of turmoil. While Trump has largely shrugged off the market impact, Beijing has pulled out all the stops: easing its grip on the currency, promising loans to state funds, loosening investment rules for insurers and turning to a group of state-backed funds to buy stocks and exchange-traded funds. Inflows into ETFs linked to the so-called national team were 87 billion yuan ($11.9 billion) on Tuesday, hitting an all-time record for the second day running. That suggests state funds stepped in en masse to prop up the market. Chinese state media outlets struck a triumphant tone as these measures helped push markets higher on Tuesday. The China Securities Journal said authorities had developed a more optimized approach to stabilizing markets, and still had room to boost investor confidence. Shanghai Securities News talked of a new stage in the construction of China's capital market stabilization mechanism. With Wednesday's advance, the HSCEI gauge has risen 3.8% over two sessions. The index tumbled almost 14% on Monday to enter a technical bear market as investors braced for the fallout from the spiraling trade conflict. The recent swings in Chinese share prices in Hong Kong have been so extreme that the cost of hedging against further moves is now looking cheap. Implied volatility on the Hang Seng China Enterprises Index is at its lowest level since late October relative to the gauge's realized volatility, according to data compiled by Bloomberg. Investor sentiment remains fragile. Chinese securities brokerages have increased monitoring of their margin financing businesses in response to the volatility, according to local media. 'A lot now hinges on China's response,' said Charu Chanana, chief investment strategist at Saxo Markets. 'A strong retaliation from Chinese authorities could further hurt investor sentiment unless it comes with a massive domestic stimulus — not just policy promises.' —With assistance from Cecile Vannucci. More stories like this are available on ©2025 Bloomberg L.P. Sign in to access your portfolio
