Displaying items by tag: capital markets

China’s capital markets are maturing. Futures and margin trading had already been launched, but this week we saw equity options for the first time in China. The new derivatives trading commenced with big fanfare, with main regulators as well as top government officials present at the opening ceremony, emphasizing the importance of the event.

A bit outside of our normal commentary, but an article sheds light on how low-latency technology is important in China, but for buying train tickets.

Conventional wisdom and the written history of capital markets would have it that the value of a particular stock is based on the potential of future returns in the form of dividends and the underlying book value of the company. Not ones to stick with tradition, China’s mainland investors have often defied this basic tenant of reason and developed their own ideas about what the price of any particular stock should be.

After years of bearish sentiments among Chinese investors, the Shanghai Composite Index seems to be picking up again and rises to highest level since August 2011.

Alibaba's not so subtle move into China's financial services industry took another step forward today with an additional investment into financial data and software provider Hundsun.

Baidu Baifa 100 Index Fund, the first big data-based quantitative strategy fund in China, announced that it was closed for new investors only  24 hours of online sale at 15:00 on October 28th.

How’s that trading on the HK-Shanghai coming for you today? We had hinted at it before in the previous couple of weeks, but it looks like the HK-Shanghai connect is delayed indefinitely with some sources saying anything from a two week to two month delay.

The Shanghai-Hong Kong Stock Connect Program is launching in mid October and significant changes to the Chinese capital markets landscape are to be expected. Also labeled as the (new?) “Through Train”, this program will give foreign retail investors access to 568 Shanghai-listed stocks, with a market capitalization of roughly USD 2 trillion, and many are already waiting in anticipation for the door to be opened. A brief analysis of the Shanghai Hong-Kong Stock Connect.

The Australia Securities Exchange reported a year on year increase on revenue and profits yesterday on the back of strong IPO performance. Net income hit A$383.2 million from A$348.2 a year before.

The RMB continued its relentless march towards being a trade currency with over US$15 billion in RMB bond issuance in the city-state of Singapore - more than doubling the issuance of 10 years ago.