Viewsroom: Are tech investors lemmings? 7 Jun 2018 Despite Facebook’s mounting problems, only a third of independent shareholders refused to reelect Mark Zuckerberg and Sheryl Sandberg to the board. Tesla and Netflix owners tend to follow the leader, too. Yet protest votes are useful. Plus: Chinese stocks make it into the MSCI.
China would be wise to limit cornerstone investors 28 May 2018 Tech stars such as Alibaba could pre-sell shares to underpin listings at home, and Foxconn just did something similar for a Shanghai IPO. The practice may prevent wild stock swings, but also distorts markets. Relying too much on such backers, as Hong Kong did, would be a mistake.
China tech boom upgrades Hong Kong trading desks 10 May 2018 The exchange says $19 bln in securities changed hands daily last quarter, double last year’s figure. That's still dwarfed by New York. But a wave of mega-listings, led by $80 bln handset maker Xiaomi, will drive more activity, as will an increasingly active derivatives market.
Hong Kong opens doors to far-from-super governance 25 Apr 2018 Tech companies with super-voting shares could be trading on the city’s stock market from June. The new rules offer more safeguards than New York, but without the legal redress U.S. investors enjoy. Expect some big listings – and shoddy treatment of minority shareholders.
LSE finds a friend at Goldman to end CEO drama 13 Apr 2018 The stock exchange operator hired U.S. investment banker David Schwimmer as its new chief. He brings deep knowledge of dealmaking and financial market plumbing. Brexit uncertainty and last year’s boardroom fight do not appear to have dented the LSE’s allure for executive talent.
CME stretches to kill NEX bidding war 29 Mar 2018 The Chicago Mercantile Exchange owner is buying Michael Spencer’s broker for 3.9 billion pounds. Meshing U.S. Treasury futures trading with NEX’s currency and bonds business is a good idea. The hefty premium may deter rival bidders but requires the deal to be perfectly executed.
Unilever-FTSE standoff is test of index power 28 Mar 2018 The benchmark compiler must decide whether to keep the Marmite maker in the FTSE 100 after it opted for a Dutch head office. Recent tax changes and activist pressure may prompt similar rejigs at heavyweights Shell and BHP. The index may have to bend its rules to retain its clout.
Michael Spencer tunes up for markets swansong 16 Mar 2018 The NEX chief executive is in talks to sell the London-based electronic broker to Chicago’s CME. Despite uncertainties caused by Brexit, shareholders have done well since Spencer offloaded the voice-trading unit in 2016. If other exchanges join in, they could gain even more.
UBS stands to lose more than IPO fees in Hong Kong 12 Mar 2018 The Swiss bank faces an 18-month suspension from sponsoring market debuts in the Fragrant Harbour. It could withstand the lost revenue, even amid a boom, but the advisory role puts brokers closer to clients. Preserving the brand with Asian entrepreneurs will be a challenge.
Chinese homecoming could fire up tech stocks 5 Mar 2018 Beijing could let Alibaba, Baidu, Tencent and others issue “Chinese depositary receipts”. A loyal local investor base is likely to further bid up the companies’ already lofty share prices. And the scheme could ruin Hong Kong’s own plans to attract banner technology listings.
LSE is suspended in comfortable limbo 2 Mar 2018 Despite a boardroom spat over the departure of CEO Xavier Rolet, the exchange operator’s adjusted operating profit rose 18 percent last year. The next boss will face big questions about consolidation and Brexit. The answers will determine whether LSE can justify its valuation.
HKEX’s hoped-for listings bonanza could fall flat 28 Feb 2018 Heavy trading and a rush of IPOs sent the Hong Kong bourse’s annual earnings soaring to $945 mln. HKEX’s stock shows investors are excited about 2018, too. That looks overdone: allowing dual-class shares will bring some flotations but bagging secondary listings will be harder.
Chicago bourse succumbs to China’s HNA syndrome 16 Feb 2018 American regulators nixed a sale of the city's exchange to a group led by China-based investors. Officials are worried about murky ownership, an issue that has also bedeviled conglomerate HNA. The question is reasonable though, and raises the bar for Chinese firms.
Why bank investors give a FICC about volatility 16 Feb 2018 Global fixed income trading revenue declined 11 pct last year, Coalition data shows. It’s a big reason investment banks again failed to cover their cost of capital. Market ructions will reveal whether a cyclical upturn is near – or whether banks need to accept structural decline.
India’s offshore trading assault might pay off 12 Feb 2018 Local exchanges will no longer share data with foreign rivals. This move, which is especially painful for Singapore, looks protectionist and will irritate some investors. The higher volumes for Indian exchanges, and a potential tax boost to New Delhi, could make it worthwhile.
Hohn’s LSE/U.S. mashup is tantalising but tricky 26 Jan 2018 After a failed boardroom coup, hedgie Chris Hohn reckons the $20 bln London Stock Exchange could be bought by a U.S. rival, according to Sky. A deal with, say, ICE, would create savings and scale in derivatives clearing. But the latter could prompt the UK government to object.
Aramco IPO beggars needn’t feel like losers 19 Jan 2018 BAML, UBS and Barclays have missed the cut to be global coordinators on the Saudi oil giant’s mega-listing, Reuters reports. Forgoing big fees from a $100 billion IPO will be cause for garment rending. Then again Saudi is a risky client and the process is replete with uncertainty.
Hong Kong will start atoning for missing Alibaba 4 Jan 2018 The city lost many Chinese tech listings to New York. But it is building a critical mass of stocks, analysts and investors, and is poised to weaken governance rules in favour of founders. That sets the stage for the IPOs of rising stars Didi, Toutiao and Meituan-Dianping.
Hadas: Albanian mania is cautionary crypto tale 28 Dec 2017 Back in 1996, the Balkan state went wild for investment funds offering 30 percent monthly returns. The final cost was 2,000 lives and five years of lost GDP growth. Bitcoin’s 24 percent monthly gains in 2017 show similar foolishness, but a quick collapse could limit the harm.
Viewsroom: Saudi Aramco’s path may lead to China 21 Dec 2017 That the Hong Kong Stock Exchange will join Riyadh in hosting the world’s largest IPO is one of Breakingviews’ 2018 predictions. We also explain the method to our fortune-telling and lay out why China will win the 5G standards race and why Wall Street will learn to love bitcoin.