Hong Kong stock exchange makes $36.6 billion offer for London stock exchange

Hong Kong Exchanges and Clearing Limited (HKEX) said Wednesday it has made a proposal to the board of London Stock Exchange Group Plc (LSE) to “combine the two companies,” in a deal which values the LSE at about £29.6 billion ($36.6 billion). The HKEX said the deal would be funded by a combination of existing cash and a new credit facility. HKEX has proposed £20.45 a share in cash, as well as 2.495 newly issued HKEX shares. LSE shares rallied shortly after 10:00 a.m. London time, rising by 8.5%


Hong Kong Exchanges and Clearing Limited (HKEX) said Wednesday it has made a proposal to the board of London Stock Exchange Group Plc (LSE) to “combine the two companies,” in a deal which values the LSE at about £29.6 billion ($36.6 billion). The HKEX said the deal would be funded by a combination of existing cash and a new credit facility. HKEX has proposed £20.45 a share in cash, as well as 2.495 newly issued HKEX shares. LSE shares rallied shortly after 10:00 a.m. London time, rising by 8.5%
Hong Kong stock exchange makes $36.6 billion offer for London stock exchange Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: david reid
Keywords: news, cnbc, companies, hong, announcement, statement, values, kong, 366, makes, deal, london, offer, lse, hkex, shares, cash, work, exchange, stock, billion


Hong Kong stock exchange makes $36.6 billion offer for London stock exchange

Hong Kong Exchanges and Clearing Limited (HKEX) said Wednesday it has made a proposal to the board of London Stock Exchange Group Plc (LSE) to “combine the two companies,” in a deal which values the LSE at about £29.6 billion ($36.6 billion).

The HKEX said the deal would be funded by a combination of existing cash and a new credit facility. It cautioned, however, that its statement to the market should be considered as an announcement to make a possible offer and is not confirmation of a firm intention to bid.

The statement from HKEX said a further announcement will be made “as and when appropriate.”

HKEX has proposed £20.45 a share in cash, as well as 2.495 newly issued HKEX shares. LSE shares rallied shortly after 10:00 a.m. London time, rising by 8.5% before giving up some of the initial gains.

HKEX said it expected key LSE management to keep their jobs and work for the new owners.


Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: david reid
Keywords: news, cnbc, companies, hong, announcement, statement, values, kong, 366, makes, deal, london, offer, lse, hkex, shares, cash, work, exchange, stock, billion


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HKEX: High valuations not ‘primary driver’ for tech firms in Hong Kong

Tech darlings such as Chinese mobile phone maker Xiaomi might have seen weak investor interest in Hong Kong lately, but they don’t appear be motivated by high stock valuations anyway, said Charles Li, the CEO of Hong Kong Exchanges and Clearing (HKEX). “A lot of these major competitive new economy spaces, you really need to be number one, number two, at worst number three, to survive. Xiaomi had a disappointing initial public offering in Hong Kong in July. Experts had said it could be a reflecti


Tech darlings such as Chinese mobile phone maker Xiaomi might have seen weak investor interest in Hong Kong lately, but they don’t appear be motivated by high stock valuations anyway, said Charles Li, the CEO of Hong Kong Exchanges and Clearing (HKEX). “A lot of these major competitive new economy spaces, you really need to be number one, number two, at worst number three, to survive. Xiaomi had a disappointing initial public offering in Hong Kong in July. Experts had said it could be a reflecti
HKEX: High valuations not ‘primary driver’ for tech firms in Hong Kong Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-09-19  Authors: weizhen tan
Keywords: news, cnbc, companies, hkex, high, li, listings, hong, primary, really, market, chinese, driver, firms, tech, companies, kong, valuations, number


HKEX: High valuations not 'primary driver' for tech firms in Hong Kong

Tech darlings such as Chinese mobile phone maker Xiaomi might have seen weak investor interest in Hong Kong lately, but they don’t appear be motivated by high stock valuations anyway, said Charles Li, the CEO of Hong Kong Exchanges and Clearing (HKEX).

Many of these rising companies are cash rich and maintaining top positions in their respective industries is more important to them, Li told CNBC at the World Economic Forum on Wednesday.

“They do seem to have strong confidence in their underlying … businesses,” Li said. “A lot of these major competitive new economy spaces, you really need to be number one, number two, at worst number three, to survive. And so maintaining that leadership position is very important.”

Still, he sees such companies heading for public listing despite the market “not pricing them at the top.”

“So whether capital markets give you a great valuation or not, seems to be not necessarily the primary driver of a lot of those listings,” he added.

Hong Kong has seen a pickup in interest for listings following a market rally early this year and after the exchange introduced new rules designed to attract tech companies by allowing dual-class share structures.

But the benchmark Hang Seng index has fallen about 18 percent since its January peak amid U.S.-China trade tensions, and several recent listings — such as Xiaomi’s — have dropped below their IPO prices.

Xiaomi had a disappointing initial public offering in Hong Kong in July. Experts had said it could be a reflection of lackluster investor interest for “new economy” type of Chinese companies, as well as disappointing valuations in the East Asian finance hub.

Sentiment surrounding Chinese companies with global ambitions has also been hurt by the escalating U.S.-China trade tensions, they say.

Among the Chinese tech companies seeking to file (or that have already filed) IPOs in Hong Kong this year are: Meituan Dianping, an online platform with services from food delivery to ticketing; Bitmain, bitcoin mining equipment maker; and Maoyan Weying, Chinese movie ticketing platform.

But Li stressed that the up and coming companies are not that affected by “marginal” market movements. Rather, those who are not listing have other business considerations, such as regulatory concerns or other strategic factors.

“Those who do choose to come, deeper conversations with them give me strong confidence that the market seems to be secondary … in driving their decisions on timing,” he reiterated. “People don’t seem to be bothered by the fact that they are not raising as much money as they can.”

“These companies are really major rising stories. This incremental capital … the marginal up and down, does not really impact that much.”

— CNBC’s Kelly Olsen and Reuters contributed to this article.


Company: cnbc, Activity: cnbc, Date: 2018-09-19  Authors: weizhen tan
Keywords: news, cnbc, companies, hkex, high, li, listings, hong, primary, really, market, chinese, driver, firms, tech, companies, kong, valuations, number


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Asian markets reflecting pessimism around trade tensions: CEO

Asian markets reflecting pessimism around trade tensions: CEO10:03 PM ET Tue, 18 Sept 2018Asian markets are responding more pessimistically to trade tensions than U.S. markets appear to be, says Charles Li, CEO of HKEx.


Asian markets reflecting pessimism around trade tensions: CEO10:03 PM ET Tue, 18 Sept 2018Asian markets are responding more pessimistically to trade tensions than U.S. markets appear to be, says Charles Li, CEO of HKEx.
Asian markets reflecting pessimism around trade tensions: CEO Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-09-18
Keywords: news, cnbc, companies, sept, reflecting, ceo, asian, responding, pessimistically, trade, tensions, markets, pessimism, li, hkex


Asian markets reflecting pessimism around trade tensions: CEO

Asian markets reflecting pessimism around trade tensions: CEO

10:03 PM ET Tue, 18 Sept 2018

Asian markets are responding more pessimistically to trade tensions than U.S. markets appear to be, says Charles Li, CEO of HKEx.


Company: cnbc, Activity: cnbc, Date: 2018-09-18
Keywords: news, cnbc, companies, sept, reflecting, ceo, asian, responding, pessimistically, trade, tensions, markets, pessimism, li, hkex


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Trading, IPO surge bumps HKEX first-half net to record high

Second half of 2018 will be more challenging, HKEX CEO says 5 Hours Ago | 03:01Hong Kong’s stock exchange operator posted a rise in first-half net profit to an all-time high, thanks to record revenues from both trading and new listings. Hong Kong Exchanges and Clearing (HKEX) said net profit for the six months to the end of June rose 44 percent to HK$5.04 billion compared to HK$3.49 billion ($444.62 million) for the same period a year earlier. Trading fees for the first half were 68 percent high


Second half of 2018 will be more challenging, HKEX CEO says 5 Hours Ago | 03:01Hong Kong’s stock exchange operator posted a rise in first-half net profit to an all-time high, thanks to record revenues from both trading and new listings. Hong Kong Exchanges and Clearing (HKEX) said net profit for the six months to the end of June rose 44 percent to HK$5.04 billion compared to HK$3.49 billion ($444.62 million) for the same period a year earlier. Trading fees for the first half were 68 percent high
Trading, IPO surge bumps HKEX first-half net to record high Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-08
Keywords: news, cnbc, companies, exchange, billion, ipo, high, major, firsthalf, half, trading, hong, compared, record, surge, net, listing, hkex, bumps, 2018


Trading, IPO surge bumps HKEX first-half net to record high

Second half of 2018 will be more challenging, HKEX CEO says 5 Hours Ago | 03:01

Hong Kong’s stock exchange operator posted a rise in first-half net profit to an all-time high, thanks to record revenues from both trading and new listings.

Hong Kong Exchanges and Clearing (HKEX) said net profit for the six months to the end of June rose 44 percent to HK$5.04 billion compared to HK$3.49 billion ($444.62 million) for the same period a year earlier.

Trading fees for the first half were 68 percent higher than a year earlier, as trading volumes rose, and listing fees were 12 percent higher.

“During the first half of 2018, the world’s financial markets experienced bouts of volatility following significant corrections across major stock markets. Investor sentiment was dominated by uncertainties over escalating U.S./China trade tensions, geopolitical risk in several parts of the world and policy divergence of major central banks,” said Laura Cha, HKEX chairman in the company’s exchange filing.

Cha, named to the role in April, said average daily turnover in the Hong Kong securities market was HK$126.6 billion for the first six months of 2018, up 67 percent compared with a year earlier.

In June, HKEX Chief Executive Charles Li was reappointed for a further three years.

The number of IPO deals were 50 percent higher in the first half of the year compared to the same period last year, if transfers from the Growth Enterprise Board to Hong Kong’s main board were included, the exchange operator said.

In April, HKEX finalized a major shake up of its listing regime. The new rules allow listings by companies with a dual class share structures, and also by biotech firms that have not yet earned any revenues. The exchange also eased the requirements for Chinese companies listed overseas to do a secondary listing in Hong Kong.

In July, smart phone maker Xiaomi became the first company to list with a dual class structure, while Ascletis Pharma was the first to list under the new biotech rules.


Company: cnbc, Activity: cnbc, Date: 2018-08-08
Keywords: news, cnbc, companies, exchange, billion, ipo, high, major, firsthalf, half, trading, hong, compared, record, surge, net, listing, hkex, bumps, 2018


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China’s opening of bond market may spark ‘massive demand’ from foreigners, HKEx CEO says

China’s move to open up its fixed income market to foreign investors will eventually unleash “massive” demand for the mainland’s bonds, the chief executive of the company that operates Hong Kong’s stock exchange, told CNBC on Friday. In May, regulators in Hong Kong and on the mainland approved a “bond connect” program to allow investors operating in Hong Kong to trade Chinese bonds, called a “northbound” flow, with a “southbound” flow of Chinese investment into Hong Kong to be considered later.


China’s move to open up its fixed income market to foreign investors will eventually unleash “massive” demand for the mainland’s bonds, the chief executive of the company that operates Hong Kong’s stock exchange, told CNBC on Friday. In May, regulators in Hong Kong and on the mainland approved a “bond connect” program to allow investors operating in Hong Kong to trade Chinese bonds, called a “northbound” flow, with a “southbound” flow of Chinese investment into Hong Kong to be considered later.
China’s opening of bond market may spark ‘massive demand’ from foreigners, HKEx CEO says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-06-30  Authors: leslie shaffer, china photos, getty images
Keywords: news, games, cnbc, companies, foreigners, market, bond, trade, ceo, kong, income, fixed, chinas, investors, demand, able, massive, spark, told, opening, hong, hkex, way


China's opening of bond market may spark ‘massive demand’ from foreigners, HKEx CEO says

China’s move to open up its fixed income market to foreign investors will eventually unleash “massive” demand for the mainland’s bonds, the chief executive of the company that operates Hong Kong’s stock exchange, told CNBC on Friday.

In May, regulators in Hong Kong and on the mainland approved a “bond connect” program to allow investors operating in Hong Kong to trade Chinese bonds, called a “northbound” flow, with a “southbound” flow of Chinese investment into Hong Kong to be considered later.

Authorities also won’t cap the amount that foreigners can invest in China.

“I think this is a huge breakthrough,” HKEx CEO Charles Li told CNBC’s “Squawk Box” on the anniversary of Hong Kong’s handover to China.

Li said that while large investors are already able to access the mainland fixed income market though existing programs, the bond connect would be fundamentally different.

“People are now finally able to do it and able to do it in a way that is familiar, that is similar to the way we trade U.S. dollar Treasurys or other international treasury fixed income instruments,” he said. “That is something so new. That the demand, underlying demand, the potent demand are massive.”


Company: cnbc, Activity: cnbc, Date: 2017-06-30  Authors: leslie shaffer, china photos, getty images
Keywords: news, games, cnbc, companies, foreigners, market, bond, trade, ceo, kong, income, fixed, chinas, investors, demand, able, massive, spark, told, opening, hong, hkex, way


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David Webb called Hong Kong small-cap rout, says regulators failed investors

But he noted that the six-week delay between publishing his report and the stocks’ collapse likely indicated his report wasn’t the direct cause, with some other catalyst likely. “There are a whole number of companies in there, a number of which were clearly bubbles and so they were going to burst at some point,” he said. “I didn’t expect them to burst simultaneously, but because of the cross-shareholding relationship between those companies, I can see why that could have happened.” HKEx said via


But he noted that the six-week delay between publishing his report and the stocks’ collapse likely indicated his report wasn’t the direct cause, with some other catalyst likely. “There are a whole number of companies in there, a number of which were clearly bubbles and so they were going to burst at some point,” he said. “I didn’t expect them to burst simultaneously, but because of the cross-shareholding relationship between those companies, I can see why that could have happened.” HKEx said via
David Webb called Hong Kong small-cap rout, says regulators failed investors Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-06-28  Authors: leslie shaffer, david webb, the enigma network, stocks not to own, justin chin, bloomberg, getty images
Keywords: news, games, cnbc, companies, smallcap, report, email, investors, hkex, disclose, hong, exchange, number, webb, rout, companies, noted, kong, stocks, failed, regulators, david, called, reports


David Webb called Hong Kong small-cap rout, says regulators failed investors

But he noted that the six-week delay between publishing his report and the stocks’ collapse likely indicated his report wasn’t the direct cause, with some other catalyst likely.

“There are a whole number of companies in there, a number of which were clearly bubbles and so they were going to burst at some point,” he said. “I didn’t expect them to burst simultaneously, but because of the cross-shareholding relationship between those companies, I can see why that could have happened.”

In an email to CNBC, the exchange cited comments from HKEx CEO Charles Li at a media event on Thursday that some of the heavily traded small-cap stocks weren’t eligible for regulated short selling and the exchange was concerned about the possibility of illegal naked short-selling.

HKEx said via email that in January it had recommended companies disclose a breakdown of major investments as well as their costs, fair value, performance and prospects.

“We are proposing to codify this requirement,” HKEx said.

Webb noted that it took years to put his diagram of cross-shareholdings together.

“I had to go through annual reports, interim reports, hundreds of filings and also push the exchange to make these companies disclose their shareholdings in other companies which they had not been enforcing that rule for a long time,” he said.

The SFC didn’t immediately respond to CNBC’s emailed requests for comment.

Follow CNBC International on Twitter and Facebook.


Company: cnbc, Activity: cnbc, Date: 2017-06-28  Authors: leslie shaffer, david webb, the enigma network, stocks not to own, justin chin, bloomberg, getty images
Keywords: news, games, cnbc, companies, smallcap, report, email, investors, hkex, disclose, hong, exchange, number, webb, rout, companies, noted, kong, stocks, failed, regulators, david, called, reports


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