MONEY MASTER

Hong Kong’s primary market is showing clear signs of revival. Four companies launched share offerings on Friday, aiming to raise up to  HK$4.9 billion (US$626 million)  combined — extending what is already the city’s strongest start to a year since 2021. A Strong Start to 2026 Hong Kong Exchanges and Clearing  has seen IPOs and secondary listings raise approximately  US$5.5 billion in January , the best January performance since 2021 (US$7.6 billion). The Lunar New Year pause is over — and deal flow is accelerating. Money Master Take This isn’t just about four IPOs. It’s about what reopening issuance tells you about capital markets. 1️⃣ Primary Market Confidence Is Returning When IPO pipelines reopen aggressively: Bankers sense demand Issuers believe valuations are acceptable Institutional money is deploying capital The fact that four deals launched simultaneously suggests  risk appetite has improved materially in Greater China equities . 2️⃣ Sector Positioning ...

 IPO Plans in Motion Klook , the Hong Kong-based travel booking platform, has tapped  Goldman Sachs, Morgan Stanley, and JPMorgan  to arrange a potential  U.S. initial public offering (IPO) , according to sources familiar with the matter. The IPO could raise about  $500 million  and may launch as early as  this year , though the final timing and size will depend on market conditions. It remains unclear if the offering will involve  new shares, investor sell-downs, or a mix of both . Market Backdrop: IPO Window Reopening The U.S. IPO market is showing renewed strength, supported by: Robust tech earnings Easing trade tensions  between the U.S. and key partners Recent high-profile listings, including  crypto exchange Bullish  and  design software maker Figma , which signal stronger investor appetite. This is a sharp turnaround from earlier in the year, when  uncertainty over Trump’s tariff policies  weighed on equity iss...

Financial Secretary hints at upside surprise for FY25/26 operating balance despite ongoing land sale slump Hong Kong’s fiscal outlook is improving faster than anticipated, with the city potentially turning an  operating surplus  for the fiscal year ending March 2026 — a significant turnaround from earlier deficit projections. Stronger Q2 Buoys Confidence, But Sustainability in Question Financial Secretary Paul Chan noted that economic momentum in the  first half of 2025 , especially strong export activity and local consumption, has outpaced expectations. The  second quarter marked the fastest growth in over a year , aided by global firms accelerating shipments ahead of impending US tariffs. Initial forecast: operating  deficit of “a few billion” HKD Updated outlook:  possible surplus  if momentum holds in H2 However, Chan cautioned that  growth may moderate in Q3 , given the frontloaded nature of trade volumes. Land Sales Drag Consolidated Account...

Asian markets look set for a cautiously upbeat day, as Wall Street holds firm near all-time highs. But behind the optimism, investors are watching closely as  tariff tensions, Fed politics, and megacap earnings  take center stage. U.S. Snapshot: S&P 500 Steady, AI Stocks in Focus S&P 500 : Flat overall, despite  400+ stocks rising . "Magnificent Seven"  (including Apple, Microsoft, Nvidia) paused after a nine-day winning streak. These AI-driven tech giants are expected to deliver  14% earnings growth  in Q2, while the rest of the S&P 500 shows  flat growth , according to Bloomberg Intelligence. “Tech remains the engine,” says Lauren Goodwin of NY Life Investments. “But the AI story is still early in execution.” Asia Market Outlook Hong Kong & Sydney : Set to open higher. Tokyo : Slight dip expected as investors digest  PM Ishiba’s election setback . Eyes are on Japan’s  40-year bond auction , testing demand amid fiscal concern...

Contemporary Amperex Technology Co. Ltd. ($CATL), the world’s battery giant, is now  30% more expensive in Hong Kong  compared to its Shenzhen counterpart — a rare premium driven by: ✅ Strong global investor demand ✅ Post-listing lock-up limiting liquidity ✅ Short squeeze dynamics 📈 Since debuting in May, CATL’s Hong Kong shares have  jumped 46% , reflecting intense interest in the EV and battery sector. For context, most dual-listed Chinese firms trade at a  discount  in HK due to tax and access differences. ⚠️  Analysts at JPMorgan warn a pullback is possible  after this rapid rally.

  Key Takeaways: Record-Setting Hong Kong Listing :  CATL  (Contemporary Amperex Technology Co. Limited), the Chinese battery giant, has received approval from China’s securities regulator for its upcoming  Hong Kong listing . The company aims to raise at least  US$5 billion  (RM22.12 billion), marking the  largest IPO  in Hong Kong in four years. Share Issuance Details : The Shenzhen-listed firm plans to issue up to  220 million shares  on the  Hong Kong Stock Exchange , with the deal potentially surpassing the previous largest IPO of  Kuaishou Technology , which raised  US$6.2 billion  in 2021. Funding Expansion : Part of the funds from the listing will be allocated to the construction of a  battery plant  in  Hungary , with a projected investment of  €7.3 billion  (US$7.53 billion), aiming to strengthen its foothold in the global electric vehicle (EV) market. Revitalized Hong Kong Market : ...

Key Takeaway: Investors seek deeper access to China and Hong Kong markets , with IPO participation being a top aspiration for the next phase of Stock Connect. Stock Connect Achievements Daily Trading Volumes: Northbound (into China): $17 billion . Southbound (into Hong Kong): $5 billion . Capital Flows Since Launch: 1.8 trillion yuan ($249 billion) flowed into Chinese markets. HK$3.4 trillion ($436 billion) flowed into Hong Kong markets. Market Impact: 7% of China’s daily turnover and 17% of Hong Kong’s trading volume. Covers 43% of eligible equities and 90% of market cap across Shanghai, Shenzhen, and Hong Kong. Next Steps for Stock Connect Primary Market Access: Aspirations to enable Chinese investors to subscribe to Hong Kong IPOs and vice versa. HKEX CEO Bonnie Chan said the move will require “riper conditions” and a robust IPO pipeline . Expansion of Eligible Products: Focus on futures, Treasury bonds, and commodities to cater to international risk management needs . Addit...

Key Takeaway: Hong Kong’s stock market remained open for trading despite Typhoon Signal 8 , marking a historic shift aimed at aligning with other global financial hubs. For the first time in decades, Hong Kong’s $5.4 trillion stock market operated during severe weather as tropical storm Toraji approached, ending the long-standing practice of closing markets during typhoons. With systems running smoothly and trading volumes only 15% below the 20-day average, most brokerages and asset managers successfully managed operations. The decision to keep markets open is part of a broader effort to enhance Hong Kong’s status as an Asian financial hub . While the change isn’t expected to increase trading volume immediately, keeping pace with global markets is seen as essential for maintaining competitiveness. Hong Kong's IPO market has shown signs of revival, raising $9 billion this year , nearly double the 2023 figure. Despite remote work setups, some brokers and traders reported minor eff...

After a couple of slow years, Asia’s IPO market shows signs of a turnaround. Chinese firms are increasingly exploring IPOs in Hong Kong , driven by a nearly 20% rise in the Hang Seng Index this year, marking its first annual gain since 2019. Meanwhile, India is seeing a record year in funds raised from IPOs, with more deals planned, and Tokyo’s stock market is witnessing notable listings . Hong Kong IPOs raised around $9 billion this year , a substantial increase from $5.6 billion in 2023 , the lowest since 2001. Companies such as Jiangsu Hengrui Pharmaceuticals, Chery Holding, Foshan Haitian, SF Holding, and Dmall are reportedly considering Hong Kong IPOs. This interest follows notable listings like Midea Group’s $4.6 billion IPO and China Resources Beverage’s debut . In India, IPO momentum continues, with Hyundai Motor India raising $3.3 billion in the nation’s largest IPO to date. LG Electronics, Swiggy, HDB Financial Services, and Carraro’s Indian unit are among those eyeing f...

Hong Kong's recent uptick in home sales may struggle to maintain momentum due to the city’s weak economic outlook and high interest rates . According to data from Midland Realty , the number of new home transactions in the seven days following Chief Executive John Lee's policy address increased by 20% , with notable launches like Sun Hung Kai Properties Ltd’s project in Kai Tak boosting sales. Prices for second-hand transactions also saw a slight rise of 0.5% during the same period, per Centaline . Despite this short-term growth, property agents remain cautious about its sustainability. High borrowing costs and poor economic sentiment are deterring more buyers from entering the market. Interest rates in Hong Kong remain high, with the one-month interbank rate at 4.2% , and almost all new mortgages are tied to floating rates . “ The residential market is greatly affected by interest rates and economic circulation ,” said Rosanna Tang , head of research at Cushman & W...

Hong Kong Exchanges & Clearing Ltd (HKEX) posted a 7% increase in third-quarter profit, driven by a jump in investment income . The exchange reported a net income of HK$3.145 billion (US$405 million) , slightly above the consensus estimate of HK$3.113 billion, according to a survey of analysts by Bloomberg. The results are expected to improve further in the fourth quarter after China implemented a series of stimulus measures in late September, which boosted trading volumes . Average daily volumes surged to about HK$300 billion , more than double the yearly average, supported by Hong Kong’s interest rate cuts that bolstered investor confidence. HKEX's CEO Bonnie Chan remarked that the vibrancy of Hong Kong's markets was evident in late September, with investor sentiment improving after economic stimulus announcements from mainland China and monetary easing by major central banks. HKEX's share price has jumped nearly 30% since the Chinese market support measures wer...

Hong Kong has eased its mortgage rules, allowing homebuyers to pay a lower down payment in a bid to address the city’s ongoing property market slump. The loan-to-value (LTV) ratio for all residential properties has been set at 70% , reducing the required down payment for homes valued above HK$35 million . Previously, these homes had an LTV ratio of 60%. Additionally, the LTV ratio for company-held properties has also been raised to 70% from 60%. These changes took effect immediately, with the Hong Kong Monetary Authority (HKMA) stating there is room for adjustments due to the softening property market in recent months. Furthermore, Hong Kong’s New Capital Investment Entrant Scheme has been expanded to allow investment in homes valued at HK$50 million or more, with a cap of HK$10 million on the amount counted towards total capital investment. Following the announcement, the Hang Seng Property Index rose as much as 3.9% , outperforming the main Hang Seng Index . However, the prop...

Hong Kong is set to further enhance its position as a key offshore yuan trading center by establishing a central clearing system for yuan-denominated bond repurchase transactions and improving liquidity in the Chinese currency , as announced by Chief Executive John Lee in his annual policy address on Wednesday. The city, already the world’s largest offshore renminbi hub , aims to contribute to the internationalization of the yuan by enhancing mutual market access and further integrating its financial system with China's . These measures build upon earlier efforts to deepen financial links between Hong Kong and China. The currency-related initiatives come as part of broader efforts to support Hong Kong’s real estate sector and boost local spending amid China’s economic slowdown , which has been weighing on the city's economy. According to Lynn Song , chief economist for Greater China at ING Bank , these steps represent progress in a "long process" to develop t...

Chinese stocks surged on Monday, with the CSI 300 Index closing up 1.9% , marking its best performance in nearly a week. The rally came after Beijing reiterated its commitment to supporting the economy with new fiscal measures, although specific details, including a headline number, were absent. Despite early volatility, the market showed signs of cautious optimism. Finance Minister Lan Fo’an hinted at further government borrowing and new steps to support the property sector during a Saturday briefing, although the lack of a concrete figure left investors waiting for more specifics. Analysts and traders are closely monitoring fiscal policies, expecting sustained support from increased fiscal spending , which has been key in maintaining market momentum following the central bank’s stimulus actions in late September. According to a note from HSBC Holdings Plc , the government’s policy pivot is expected to stay in place, boosting market confidence. The stock market rally, however, re...

Chinese stocks slumped as skepticism over Beijing's stimulus plans and weak holiday spending data impacted market sentiment. The CSI 300 Index fell as much as 5.1% , marking its first loss in 11 days, while a gauge of Chinese companies listed in the US dropped 6.9% on Tuesday, led by declines in travel and consumption-related shares . Investor enthusiasm over China’s stimulus-driven rally is fading, with no major new initiatives announced at a key policy meeting. Many strategists and fund managers have expressed concern that Beijing's spending pledges lack sufficient backing, while some fear that many stocks have become overvalued . During the Golden Week holiday , consumer sentiment appeared muted , with tourist spending rising 7.9% compared to 2019 , while the number of trips increased 10.2% . This resulted in a 2.1% drop in per-trip expenditure, signaling that despite the recent barrage of stimulus measures, consumer spending remains subdued.

Chinese stocks surged as mainland markets reopened after the week-long Golden Week holiday, fueled by encouraging home sales, consumption data, and optimism surrounding Beijing's stimulus measures. The CSI 300 Index, a key benchmark for Chinese equities, jumped nearly 11% in early trading, continuing its rally from before the holiday. Sentiment toward Chinese equities has shifted dramatically since late September, with the government introducing a series of supportive actions, including interest-rate cuts , increased liquidity, and fiscal support for the stock market. Global financial institutions like Goldman Sachs , HSBC , and BlackRock have upgraded their outlooks on Chinese stocks, banking on further stimulus. A key factor behind the rally has been the recovery in China's housing market. Reports indicated a 50% increase in homebuyer visits to residential projects during the holiday, and other sectors, such as dining and travel, also saw significant gains. Data from Meitu...

Hong Kong banks borrowed HK$4.79 billion ($617 million) from the Hong Kong Monetary Authority (HKMA) via the discount window on Monday, marking the highest short-term borrowing since December 2019. The increase in liquidity demand reflects rising borrowing costs and tighter Hong Kong dollar liquidity. This surge in borrowing comes as the one-month Hong Kong Interbank Offered Rates (Hibor) climbed to its highest level in two months, fueled by demand for local assets amid a rally in Chinese stocks . Other contributing factors include soaring equity settlement demand , increasing margin financing activities, and ongoing silver bond subscriptions . Ken Cheung, chief Asia FX strategist at Mizuho Bank , noted that the increased usage of the discount window mirrors tighter liquidity conditions and rising demand for Hong Kong dollar assets. The Hong Kong dollar has remained relatively stable, trading just below 7.77 per dollar , within its pegged range of 7.75 to 7.85 against the US dol...

 Late last month, Hong Kong launched a second round of trials for e-HKD , its digital version of the local banknote. Dubbed e-HKD+ , this pilot program signals that central bank digital currencies (CBDCs) aren’t the only objective. Tokenizing bank deposits is also a critical avenue being explored, a direction mirrored by Singapore through its Project Orchid initiative. Both Hong Kong and Singapore are leading the charge toward a new form of digital money that is programmable and capable of rewarding environment-friendly spending or channeling government grants to targeted beneficiaries. This shift hints at a global trend where money serves a social purpose beyond just facilitating commerce. CBDCs work like paperless ATMs, but they could cause disruptions. If wildly adopted, banks might see a decrease in deposits, limiting their ability to lend. To prevent this, caps on withdrawals could be imposed. However, the success of CBDCs remains uncertain, with examples like Chin...

   Despite a 30% surge in the Hang Seng China Enterprises Index since late September, global fund managers like Invesco Ltd., JPMorgan Asset Management , and Nomura Holdings Inc. remain cautious about the sustainability of the rally. The rebound, driven by Beijing’s stimulus measures including interest rate cuts and liquidity support, has reinvigorated investor confidence. However, concerns over overvalued stocks and the need for more concrete economic recovery actions persist. Invesco's Raymond Ma warns that some stocks are now overvalued , and their fundamentals may not justify their high prices. Similarly, JPMorgan Asset Management is wary, calling for additional policy measures to further boost confidence and economic activity, especially as global uncertainties—like the upcoming US elections —loom. While Nomura warns of a potential stock market "boom to bust" scenario , with risks reminiscent of the 2015 crash , HSBC Global Private Banking remains neutral, e...

A sharp rebound in Chinese stocks is prompting a shift in global portfolios, with some investors rushing to take advantage of the rally. After Beijing's recent stimulus measures , money that had flowed into stocks from Japan and Southeast Asia is now being redirected back into Chinese equities , according to market analysts. Shares in South Korea, Indonesia, Malaysia, and Thailand saw net outflows last week, while BNP Paribas SA reported that more than $20 billion was withdrawn from Japanese equities in the first three weeks of September. The MSCI China Index has climbed more than 30% from a recent low , fueled by Beijing's policy-driven recovery efforts. Eric Yee, senior portfolio manager at Atlantis Investment Management in Singapore, said, “We are trimming our long positions across Asia to fund China purchases. Everyone is doing so. It’s a good policy-driven recovery from rock bottom.” Despite the recent rally, Chinese stocks remain attractively priced. The MSCI Ch...