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MarketScreener Homepage  >  Equities  >  Hong Kong Stock Exchange  >  Hong Kong Exchanges and Clearing Limited    388   HK0388045442

HONG KONG EXCHANGES AND CLEARING LIMITED

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Hong Kong exchange operator backs decision to halt Ant's record IPO

11/11/2020 | 12:06am EST

* Market needs time to absorb regulatory changes, says Li

* HKEX Q3 net profit up 52% y-o-y, to $445 million

* Trading volumes boosted after big ticket listings

* HKEX to welcome Ant back when it is ready

*

HONG KONG, Nov 11 (Reuters) - Hong Kong stock exchange, which missed out on the chance to host Ant Group's record $37 billion listing this month, believed the move to suspend the IPO was the right one and hoped the Chinese fintech giant would come back later, its CEO said on Wednesday.

Hong Kong Exchanges and Clearing (HKEX), which currently ranks fourth in the IPO league table of global exchanges according to Refinitiv, would have jumped to No. 2 if Ant's dual listing in Hong Kong and Shanghai had gone ahead.

The IPO was thwarted last week when the Shanghai Stock Exchange said it would halt the company's STAR Market listing, prompting Ant to also freeze the Hong Kong leg of the deal.

The market "needed time to fully absorb regulatory changes," Charles Li, chief executive of the Hong Kong bourse, said on an earnings call with the media.

Li did not specify which regulatory changes, but analysts have pointed to a consultation paper issued by the banking watchdogs recommending tightening rules for online micro-lending companies as foreshadowing the regulators' move against Ant.

"When Ant is ready to come back, we stand ready to welcome them back to our market," said Li, who steps down as CEO of the bourse at the end of this year.

HKEX, on Wednesday, reported net profit of HK$3.45 billion ($445 million), a quarterly record, and a 52% rise from a year earlier, lifted by higher trading revenue and listing fees.

Trading volumes were boosted by a slew of large listings including by New York-listed firms like Netease and KFC China operator Yum China, as well as record turnover on the stock and bond "connect" schemes.

The development of the "connects", which links Hong Kong with the Shanghai and Shenzhen bourses, and reforms to allow secondary listings are among Li's achievements during his 11 year tenure.

High on the agenda of Li's successor would be MSCI A share derivatives, "a long-anticipated missing piece", said Dennis Lam an equities strategist at DBS.

Last year, global index publisher MSCI and HEKX said they would launch futures contracts on the MSCI China A Index, an onshore Chinese benchmark, to provide a hedging tool for international investors, but they have not yet launched.

($1 = 7.7538 Hong Kong dollars) (Reporting by Alun John; Editing by Kenneth Maxwell and Elaine Hardcastle)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
HONG KONG EXCHANGES AND CLEARING LIMITED 8.33% 553 End-of-day quote.30.12%
MSCI CHINA (STRD, UHD) -1.77% 119.865 Real-time Quote.15.02%
YUM CHINA HOLDINGS, INC. -2.14% 58.07 Delayed Quote.3.94%
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Financials
Sales 2020 18 797 M 2 425 M 2 425 M
Net income 2020 11 630 M 1 500 M 1 500 M
Net cash 2020 102 B 13 136 M 13 136 M
P/E ratio 2020 57,2x
Yield 2020 1,56%
Capitalization 644 B 83 033 M 83 035 M
EV / Sales 2020 28,8x
EV / Sales 2021 24,3x
Nbr of Employees 2 182
Free-Float 94,0%
Chart HONG KONG EXCHANGES AND CLEARING LIMITED
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Hong Kong Exchanges and Clearing Limited Technical Analysis Chart | 388 | HK0388045442 | MarketScreener
Technical analysis trends HONG KONG EXCHANGES AND CLEARING LIMITED
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 26
Average target price 449,10 HKD
Last Close Price 509,00 HKD
Spread / Highest target 24,6%
Spread / Average Target -11,8%
Spread / Lowest Target -43,6%
EPS Revisions
Managers and Directors
NameTitle
Chi Kin Tai Co-President, Chief Executive & Operating Officer
Romnesh Lamba Co-President
May Lung Cha Non-Executive Chairman
Vanessa Lau Group Chief Financial Officer
Chung Kwong Leung Group Chief Technology Officer
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