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Hong Kong's rates curve is the most inverted in two decades

Expectations that liquidity will tighten in Hong Kong in the short term have helped drive the city’s interest rate swap curve into its deepest inversion since 1999.One-year interest rate swaps have climbed 19 basis points this week to 2.16 per cent, compared with 1.86 per cent for five-year contracts. The one-month interbank borrowing cost extended an advance on Thursday, jumping to the highest level since October 2008, amid seasonal demand for Hong Kong dollars. That has supported the currency… Source link

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Hang Seng Index drops by the most in five weeks as Hong Kong’s biggest protest rally in decades finds city on edge

Hong Kong stocks fell by the most in five weeks, as traders pocketed their profits from a recent run-up in prices after the city’s police fired tear gas on demonstrators protesting a controversial extradition proposal.The Hang Seng Index fell 1.7 per cent to 27,308.46, its biggest daily decline since a 2.4 per cent plunge on May 9 amid escalating tensions between the United States and China over trade.“The main issue the market is facing is still the Sino-US trade tussle. We have not seen the… Source link

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China showing signs similar to Japanese housing bubble that led to its ‘lost decades’, expert warns

China must exercise extreme caution in handling its housing sector because it is showing signs similar to those witnessed during Japan’s bubble period of the 1980s that contributed to the collapse of Japanese asset prices and its subsequent “lost decades” of weak economic growth and deflation, a Japanese financial system expert warned.The parallels between China’s current landscape and Japan’s two decades ago are readily apparent, stemming from a loose monetary policy that laid the foundation… Source link

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Hong Kong charges alleged mastermind of city’s largest financial probe in decades with conspiracy to defraud Convoy

Roy Cho Kwai-chee, the alleged mastermind in Hong Kong’s largest financial investigation in decades, has been charged with conspiracy to defraud Convoy Global Holdings by the city’s securities regulator and anti-corruption investigator.Cho allegedly conspired to defraud Convoy and its affiliates, causing more than HK$89 million (US$11.3 million) in losses. He will be brought to the Eastern Magistracy today, according to a joint notice by the Securities and Futures Commission (SFC) and the… Source link

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China 

China has the largest number of property billionaires, as decades of economic growth fuelled urbanisation and demand for a roof over every head

China has the world’s largest community of property tycoons, as a generation of developers grew wealthy over three decades of rapid economic growth, which fuelled the aspiration to have a roof over every head.The second-largest economy had 108 dollar-denominated billionaires, out of 239 around the world, according to the 2019 Hurun Global Real Estate Rich List. The United States, with an economy that’s one and half times larger, has 26 real estate billionaires, while the UK has 17, and Hong… Source link

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China stocks rise on tax cuts, while Hong Kong shares slip as Beijing sets lowest GDP growth rate in three decades

Hong Kong stocks retreated on Tuesday morning as China set its lowest GDP growth rate in 30 years, while mainland shares rose on optimism over tax cuts.Markets tried to find their footing as traders digested a lot of news and China’s annual political summit kicked off to decide policy for the next year.Overnight, US stocks slumped over concerns about progress in ending the US-China trade war. China set an economic growth target of 6 to 6.5 per cent for 2019, down from last year’s target of … Source link

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China’s venture capital firms outperform US, European peers amid breakneck economic growth in the past two decades

Chinese venture capital funds have outperformed those in the US and Europe in the last 20 years, as the country’s breakneck economic growth has given impetus to the rapid expansion of the industry, according to analysts.Nevertheless, the sector is forecast to face major upheaval in 2019, with many smaller funds expected to collapse as winter sets in for the capital market amid a deepening economic downturn.Chinese VC funds delivered an overall return of 1.79 times in the period from 1997 to… Source link

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Qantas: high-flying connection between Hong Kong and Australia for seven decades, and beyond

[Sponsored Article]The pastQantas premiered its charter service from Sydney to Hong Kong in March 1949 – three months before it launched its regular fortnightly service.That inaugural journey, made in a four-engine, propeller-driven Douglas DC-4 Skymaster, took around 20 hours, with stops in Darwin, in Australia’s Northern Territory, and the island of Labuan, then part of Borneo, before landing at Hong Kong’s Kai Tak International Airport in Kowloon.Memories of the infamous Kai Tak, which… Source link

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China 

Tencent sees focus of internet development shifting from consumers to business in next two decades

The next 20 years of internet development will centre on “2B”, or services to businesses, shifting from a focus on consumers in the past two decades, according to Tencent executives at the company’s partners’ day in Nanjing, China. “Tencent will play a role of being an assistant to help the internet integrate smart retail, medical, education as well as the manufacturing sectors,” Dowson Tong, president of Tencent’s newly established Cloud & Smart Industries Group, said in the opening speech at the two-day event. “In the coming two decades, Tencent will…

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Six months after the largest listing reform in three decades, what has Hong Kong exchange gained?

Six months after pushing through the biggest change in Hong Kong’s listing rules in three decades, what has the Hong Kong Exchanges and Clearing (HKEX) gained? Its stock price has plunged nearly 19 per cent since April 30 when the reform kicked off, losing HK$60.53 billion (US$7.72 billion) in value. When HKEX chief executive Charles Li Xiaojia touted the success of the listing reforms that the exchange operator had pushed through with the city’s securities watchdog agency, he described it as the biggest game-changer since 1993, when Chinese companies were…

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