CHINA DAILY HONG KONG EDITION Monday, July 23, 2018 Markets | BUSINESS 17 Boombust tells IPO tale amid Asset managers face tough scene
HK easing, mainland tightening By CAI XIAO [email protected] In the year’s first percent Chinese privatelyoffered 12 half, Ashare floats asset management companies losses suffered by each of reported poor performance in the 27 private fund slow while Hong the first half as the stock mar products out of Springs Kong edges ahead ket was not in its best form, Capital’s 30 funds in the but experts said prospects for first half of this year a better second half are bright. By SHI JING in Shanghai Beijingbased Springs Capi [email protected] tal, one of China’s leading pri vate fund managers, saw 27 of While firsthalf initial pub its 30 products make a loss of the People’s Bank of China, the lic offerings in the Chinese more than 12 percent each by central bank, may cut the Ashare market have slowed June 29, compared with the reserve requirement ratio by due to regulatory tightening, beginning of this year. Only another 150 basis points new listings in Hong Kong two products earned profits before the end of this year and have surged on rules facilitat but their yields were low at conduct open market opera ing floats of companies from only 0.36 percent and 0.53 per tions such as using the medi emerging sectors such as bio cent respectively. umterm lending facility to tech. Oriental Harbor Invest increase liquidity. In fact, the Hong Kong ment Management Co Ltd, Wang said China will con stock market appears set to another established private tinue to implement financial regain its reputation as one fund manager, saw 27 of its 30 deleveraging in the second of the world’s largest IPO products suffering losses, with half. markets, equity mavens 14 losing by more than 5 per Dong Dengxin, a finance said. cent each. professor at the Wuhan Uni A report from global con And 17 out of 19 products of versity of Science and Technol sultancy PwC stated that Greenwoods Asset Manage ogy, said the Chinese stock firsthalf Ashare IPOs fell 74 ment suffered losses. One market was negatively influ percent yearonyear to 63. fund product managed by the enced by trade tariff imbroglio IPO proceeds contracted too company’s founder Jiang Jinz involving the United States by 26 percent to 93.1 billion hi even had a 17.2 percent loss. and China. Wang Tao (left), chairman and CEO of Ping An Healthcare and Technology Co, and Peter Ma, chairman and CEO of Ping An Insurance yuan ($13.9 billion). But IPO “The Ashare market fell to Group Co, pose for photographs before striking a gong during a listing ceremony for Ping An Healthcare, known as Good Doctor, at the All 16 products of Shenzhen application approval rate is Mingda Capital Management the bottom and the trade vol Hong Kong stock exchange on May 4. ANTHONY KWAN / BLOOMBERG rising slowly, with the num Co Ltd had losses of more than ume decreased, so it’s been dif ber of companies in the 8 percent each. ficult for private fund queue dropping from 519 at highvolume arena to a quali proceeds in Hong Kong add reach HK$200 billion. “Most privately offered asset managers to make profit in the the end of last year to 307 in tyoriented market,” she said. ed up to HK$36.1 billion ($4.6 The Hong Kong regulators’ management companies past few months,” said Dong. June. “After the IPO expansion in billion), or 72 percent of the new policies will make the made losses in the first half as He further said the second Companies specializing in 2016 and tightening toward total. market very attractive to the the stock market was offcolor half will likely be better as Chi industrial products, consum The Ashare the end of 2017, the regulator Lawrence Lau, partner at Chinese mainland compa and almost all shares fell,” said na’s Ashare market will prob er goods and services, IT and has been pursuing more bal EY Assurance Services, said nies, and an equal or more Ma Wenya, general manager ably see an uptrend, as the telecommunications made market has been ance in IPOs.” the Hong Kong stock number of New Economy of Sunday Fund Co Ltd, a nation’s economic fundamen up the majority of Ashare The Ashare market is seek exchange’s new rules, which players will likely list there in Chengdubased asset manage tals are good and the con IPOs. transformed from ing a structural optimization, took effect in late April, facil the second half as well, Lau ment company. sumption potential is huge. Jean Sun, assurance part while the Hong Kong market itate the listing of New Econ said. Ma said liquidity in the China Investment Corp, ner of PwC China, said bro a highvolume has seen a boom in IPOs in omy companies, especially Vinsan Wang, operating Ashare market was tight in China’s sovereign wealth fund, kerages and investment the first half. those from the biotech sec director of online securities the first half due to the ongo has expressed a desire to banks received updated IPO arena to a quality Global consulting firm EY tor. brokerage Tiger Brokers, said ing deleveraging moves and a invest in the domestic market approval guidelines from said in a report there were a This has ushered in a “new the Hong Kong market will series of private placements. as stock valuations have hit the central regulator in oriented market ... record 98 IPOs in Hong Kong era” that regulates registra remain attractive as the over But, since liquidity is expect multiyear lows, underscoring June. in the first half, up 44 percent tion, depository, transaction all valuations are at a lower ed to improve in the second how coming home could bring Under the new guidelines, the regulator has yearonyear. and settlement aspects of lis level, providing longterm half, he is still bullish on the new opportunities to boost companies with systemic been pursuing Chinese mainland compa tings, encouraging main investors a certain safety mar Ashare market, he said. returns. problems will be prevented nies accounted for a bulk — land companies to go public gin. “We will have good invest The $941 billion CIC is seek from listing, while unquali more balance in 19 — of Hong Kong IPOs, in Hong Kong, Lau said. The Hong Kong bourse’s ment opportunities in the rest ing permission to invest in fied companies will be per according to data from The vibrancy of the Hong new IPO policies will drive of the year if more funds are local shares and bonds, and suaded to withdraw their IPO IPOs.” Shanghaibased market Kong market will extend into more Chinese mainland com injected into the market,” Ma has laid the groundwork for applications. information provider Wind the second half, according to panies from the New Econo said. an application to the central “The Ashare market has Jean Sun, assurance partner of Info. EY. The total IPO proceeds for my sectors to be listed there, Wang Tao, chief China econ government, according to been transformed from a PwC China Mainland companies’ IPO the full year are estimated to she said. omist at UBS Securities, said Bloomberg.
Weekly Stock Market Performance GainersGainers and andLosers Losers International Stock Markets
Weekly YTD Weekly Weekly Weekly YTD % Chg Index Close % Chg % Chg GAINERS Close % Chg LOSERS Close % Chg Close % Chg –9% 0% +9% Shanghai Stock Exchange Composite Index 2829.27 –0.1 –14.5 Hang Seng Index Shanghai Stock Exchange 28,224.48 –1.1 3600 ZhuzhouTimesNewMtrlTch 9.25 20.92 HenanOrntlSlvrStrInvst 17.88 –38.13 Hang Seng China Ent Index 10,682.64 –0.6 JiangsuYulongSteelPipe 6.67 19.11 NingxiaXinriHnglStlWre 5.77 –26.96 TAIEX Taiwan Stock Index 10,932.11 0.6 3300 Chengtun Mining Group 9.57 18.29 Anji Foodstuff Co Ltd 15.33 –25.44 Nikkei 225 22,697.88 0.4 NanjingXnjkDprtmntStre 16.19 17.75 Lanhai Medical Invst 3.76 –22.63 Sensex 36,496.37 –0.1 3000 HubTKDCrystlElSc&Tchnl 19.24 17.53 Shanghai Zhongyida Co 2.18 –22.42 KOSPI 2,289.19 –0.9 Shandong Lukang Pharma 12.86 16.91 DynagreenEnvirProtectn 22.21 –19.73 S&P/ASX 200 6,285.85 0.3 2700 Lafang China Co Ltd 20.30 16.27 GuangdongWencanDiCstng 39.53 –17.13 New Zealand 50 Gross Index 8,955.54 –0.8 Weifang Yaxing Chem 5.62 15.40 Fujian Furi Electr 5.95 –16.08 Straits Times Index STI 3,297.83 1.1 WuhanYangtzeCmmIndstry 33.69 14.75 Shanghai Hongda Mining 4.34 –13.89 Bangkok SET Index 1,671.06 1.7 Bursa Malaysia KLCI Index 1,754.67 1.9 Shenzhen Stock Exchange Component Index 9251.48 –0.8 –16.2 Baotailong New Matrl 6.26 14.65 ShanghaiYuyuanTorstMrt 8.36 –13.81 VN-Index 933.39 2.6 11,800 Shenzhen Stock Exchange Dow Jones 25,058.12 0.2 YunnanChuangxinNewMtrl 47.11 17.19 China Media Group 4.96 –40.95 10,800 ZTE Corp 16.52 17.16 Bohai Capital Holding 4.32 –26.03 BeijingShiji Info Tech 33.00 15.14 DMG Ent & Media 5.30 –25.77 Commodities
9800 Beijing SuperMap Sftw 23.36 15.07 GuangdongLYIntllgntMfg 4.08 –23.74 Weekly YTD % Chg Jiangsu Guoxin Corp 7.87 14.56 BGI Genomics Co Ltd 78.86 –23.11 Close % Chg –30% 0% +30% 8800 Shenzhen Tat Fook Tech 11.54 14.14 QinghaiSaltLakeIndstry 8.71 –18.22 Brent Crude Oil (USD/bbl.) 73.03 –3.1 XinjiangMchRsrcInsttte 8.02 13.44 Hongda Xingye Co Ltd 3.45 –17.66 Gold (USD/t oz.) 1231.10 –0.8 TianGuang ZhongMao Co 2.78 11.20 GuangdongEastoneCenTch 4.86 –14.74 Silver (USD/t oz.) 15.55 –1.7 Digital China Group Co 15.83 11.01 Dalian Zeus Ent 8.12 –12.22 Copper (USD/lb.) 2.76 –0.7 Shanghai Shenzhen CSI 300 Index 3492.89 0.0 –13.3 Aluminum (USD/MT) 1986.75 –3.9 Qingdao TGOOD Electric 13.47 10.68 InnerMnglMGrssEclgy&En 5.18 –11.90 4400 Corn (USD/bu.) 3.69 4.0 Hang Seng Wheat (USD/bu.) 5.16 3.8 4000 China Resources Power 15.24 6.87 Sunny Optical Tech 136.00 –10.53 Soybeans (USD/bu.) 8.65 3.7 Hong Kong & China Gas 16.22 6.29 ChinaOverseasLnd&Invst 23.40 –7.87 Coffee (USD/lb.) 1.11 0.7 3600 Swire Pacific Ltd 85.00 2.35 AAC Technologies 100.00 –7.66 Sugar #11 (USD/lb.) 0.11 1.5 CLP Holdings Ltd 89.40 2.23 Hengan International 70.60 –6.68 Palm Oil (MYR/MT) 2194.00 2.2 3200 Wharf RealEstate Invst 56.50 1.53 Geely Automobile 19.18 –6.67 Cross Currency Rates ETFS Shanghai B-Share Stock Price Index 287.72 –1.7 –15.8 Weekly USD EUR CNY HKD GBP KRW BRL RUB JPY INR CAD 365 EQUITY ETFs Ticker Close % Change USD 1.172 0.148 0.127 1.314 0.001 0.265 0.016 0.009 0.015 0.762 China 50 510050 2.54 1.24 345 China AMC CSI 300 Index 510330 3.84 0.29 EUR 0.853 0.126 0.109 1.121 0.001 0.226 0.013 0.008 0.012 0.650 China CSI 500 510500 5.50 –0.33 325 CNY 6.770 7.925 0.862 8.874 0.006 1.795 0.107 0.061 0.098 5.154 China SME 159902 3.13 –0.10 305 HKD 7.850 9.203 1.160 10.312 0.007 2.080 0.124 0.070 0.114 5.979 China Universal CSI Consumer Staples Index 159928 2.25 –2.01 GBP 0.761 0.892 0.112 0.097 0.001 0.202 0.012 0.007 0.011 0.580 E Fund ChiNext Price Index 159915 1.54 –0.45 285 E Fund CSI 300 510310 1.51 0.00 KRW 1133.750 1321.390 167.188 144.436 1481.880 298.907 17.766 10.146 16.467 859.270 E Fund CSI 300 Financials ex Banks Index 512070 1.70 3.09 BRL 3.775 4.424 0.557 0.481 4.958 0.003 0.059 0.034 0.055 2.875 E Fund Hang Seng China Enterprises Index 510900 1.15 1.05 Shenzhen B-Share Stock Price Index 1045.07 –1.8 –10.2 RUB 63.491 74.431 9.374 8.089 83.391 0.056 16.825 0.570 0.924 48.367 E FUND SZSE100 INDEX FUND 159901 4.23 –0.89 1250 Fortune SGAM Xianjin Tianyi Money Market 511990 100.02 –0.01 JPY 111.470 130.680 16.515 14.200 146.429 0.099 29.534 1.756 1.619 84.902 Guangfa CSI 500 510510 1.46 –0.55 1175 INR 68.853 80.246 10.171 8.771 89.805 0.061 18.216 1.083 0.614 52.002 Guotai Shanghai Stock Exchange 180 Financial Index 510230 5.50 2.10 CAD 1.313 1.539 0.194 0.167 1.725 0.001 0.348 0.021 0.012 0.019 Harvest CSI 300 Index 159919 3.87 0.62 1100 Huatai-Pinebridge CSI 300 510300 3.55 0.45 Shanghai SSE180 510180 3.08 0.95 Data provided by 1025 SSE Pledge Urban Investment Bond 511220 91.65 1.36 J A S O N D J F M A M J J Yinhua Traded Money Market Fund 511880 102.33 0.06