Exchanges/Platforms

Chinese markets have much to fear from fear itself

4 Jul 2018

A stronger dollar largely accounts for a recent 6 pct fall in the yuan, with the central bank managing the pace. Tumbling Chinese stocks can be weathered, and some defaults are healthy. Patience is not one of President Xi’s virtues, though, and panicked intervention is a risk.

Xiaomi humble IPO pie still good enough to eat

29 Jun 2018

The Chinese smartphone maker priced its Hong Kong float at the bottom end of a marketed range, valuing it at $54 bln. This isn’t a failure, and investors who believe in the company will like the discount. Missteps by executives and bankers offer lessons for those next in line.

Chinese P2P giant Lufax dodges valuation bullet

15 Jun 2018

A mooted private fundraising of more than $1 bln makes sense. With regulatory change coming to peer-to-peer lenders, floating now could upset Beijing, and might only be doable at a bargain price. Abundant venture capital offers a way to keep growing without a distracting IPO.

Hermes loses niche status in fashion and finance

15 Jun 2018

The fashion group is joining rivals LVMH and Kering in France’s CAC 40 index. The Hermes family must get used to hoi polloi like ETFs and hedge funds crowding into its stock, and tougher disclosure norms. For companies, like luxury handbags, there’s a cost to going mainstream.

Xiaomi IPO escalates China’s battle of the bourses

15 Jun 2018

The handset-maker will now sell at least half of its mooted $10 bln offering in Shanghai. That is a blow to the other listing venue, Hong Kong, which changed its rules to woo more tech IPOs. The city will have to share a lot of this business with its two mainland rivals.

Hong Kong could teach China tech some manners

14 Jun 2018

Sina plans a secondary listing in the city, under new rules welcoming Chinese tech outfits traded overseas. In New York, the $7 bln web portal and its peers can issue super-voting stock on a whim and skip annual general meetings. The Fragrant Harbour will be less soft.

Viewsroom: Are tech investors lemmings?

7 Jun 2018

Despite Facebook’s mounting problems, only a third of independent shareholders refused to reelect Mark Zuckerberg and Sheryl Sandberg to the board. Tesla and Netflix owners tend to follow the leader, too. Yet protest votes are useful. Plus: Chinese stocks make it into the MSCI.

China would be wise to limit cornerstone investors

28 May 2018

Tech stars such as Alibaba could pre-sell shares to underpin listings at home, and Foxconn just did something similar for a Shanghai IPO. The practice may prevent wild stock swings, but also distorts markets. Relying too much on such backers, as Hong Kong did, would be a mistake.

China tech boom upgrades Hong Kong trading desks

10 May 2018

The exchange says $19 bln in securities changed hands daily last quarter, double last year’s figure. That's still dwarfed by New York. But a wave of mega-listings, led by $80 bln handset maker Xiaomi, will drive more activity, as will an increasingly active derivatives market.

Hong Kong opens doors to far-from-super governance

25 Apr 2018

Tech companies with super-voting shares could be trading on the city’s stock market from June. The new rules offer more safeguards than New York, but without the legal redress U.S. investors enjoy. Expect some big listings – and shoddy treatment of minority shareholders.

LSE finds a friend at Goldman to end CEO drama

13 Apr 2018

The stock exchange operator hired U.S. investment banker David Schwimmer as its new chief. He brings deep knowledge of dealmaking and financial market plumbing. Brexit uncertainty and last year’s boardroom fight do not appear to have dented the LSE’s allure for executive talent.

CME stretches to kill NEX bidding war

29 Mar 2018

The Chicago Mercantile Exchange owner is buying Michael Spencer’s broker for 3.9 billion pounds. Meshing U.S. Treasury futures trading with NEX’s currency and bonds business is a good idea. The hefty premium may deter rival bidders but requires the deal to be perfectly executed.

Unilever-FTSE standoff is test of index power

28 Mar 2018

The benchmark compiler must decide whether to keep the Marmite maker in the FTSE 100 after it opted for a Dutch head office. Recent tax changes and activist pressure may prompt similar rejigs at heavyweights Shell and BHP. The index may have to bend its rules to retain its clout.

Michael Spencer tunes up for markets swansong

16 Mar 2018

The NEX chief executive is in talks to sell the London-based electronic broker to Chicago’s CME. Despite uncertainties caused by Brexit, shareholders have done well since Spencer offloaded the voice-trading unit in 2016. If other exchanges join in, they could gain even more.

UBS stands to lose more than IPO fees in Hong Kong

12 Mar 2018

The Swiss bank faces an 18-month suspension from sponsoring market debuts in the Fragrant Harbour. It could withstand the lost revenue, even amid a boom, but the advisory role puts brokers closer to clients. Preserving the brand with Asian entrepreneurs will be a challenge.

Chinese homecoming could fire up tech stocks

5 Mar 2018

Beijing could let Alibaba, Baidu, Tencent and others issue “Chinese depositary receipts”. A loyal local investor base is likely to further bid up the companies’ already lofty share prices. And the scheme could ruin Hong Kong’s own plans to attract banner technology listings.

LSE is suspended in comfortable limbo

2 Mar 2018

Despite a boardroom spat over the departure of CEO Xavier Rolet, the exchange operator’s adjusted operating profit rose 18 percent last year. The next boss will face big questions about consolidation and Brexit. The answers will determine whether LSE can justify its valuation.

HKEX’s hoped-for listings bonanza could fall flat

28 Feb 2018

Heavy trading and a rush of IPOs sent the Hong Kong bourse’s annual earnings soaring to $945 mln. HKEX’s stock shows investors are excited about 2018, too. That looks overdone: allowing dual-class shares will bring some flotations but bagging secondary listings will be harder.

Chicago bourse succumbs to China’s HNA syndrome

16 Feb 2018

American regulators nixed a sale of the city's exchange to a group led by China-based investors. Officials are worried about murky ownership, an issue that has also bedeviled conglomerate HNA. The question is reasonable though, and raises the bar for Chinese firms.

Why bank investors give a FICC about volatility

16 Feb 2018

Global fixed income trading revenue declined 11 pct last year, Coalition data shows. It’s a big reason investment banks again failed to cover their cost of capital. Market ructions will reveal whether a cyclical upturn is near – or whether banks need to accept structural decline.