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Global fintech investments nosedive as Chinese fundraising falls sharply, report says

Global investments in fintech firms tumbled 29 per cent in the first half of the year as deal activity in China fell sharply amid an escalating trade war between Washington and Beijing, according to a new report by the consulting firm Accenture.The value of financial technology deals worldwide in the six months ended June 30 declined to US$22 billion, compared with US$31.2 billion in the same period a year earlier. The number of deals globally, in contrast, increased 2 per cent to 1,561 in the… Source link

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Hong Kong’s stock market has a midsummer’s nightmare as fundraising dries up in worsening trade war and street mayhem

Hong Kong’s stock market is going through its worst summer since 2012, as fundraising activity dwindled to a single initial public offering (IPO) in August, while a worsening US-China trade war and deteriorating civic unrest weighed on sentiments.The number of companies seeking to raise capital this year fell by a third to 88 IPOs, with proceeds plunging by 55.9 per cent to US$10.82 billion, from the same period in 2018, according to Refinitiv’s data. July’s listings halved to 15 companies,… Source link

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Hong Kong’s stockbrokers face a bleak second half as job cuts loom amid shrinking trading volume and dwindling fundraising plans

Hong Kong’s stockbroking industry is making an early entry into a bleak winter, as daily transactions and fundraising shrank amid the combination of a year-long US-China trade war with unprecedented civil unrest.The industry, comprising 27,327 licensed traders in 594 firms, is likely to shrink by at least 10 per cent, beginning with back-office support staff, research and administrative clerks, according to the head of the industry guild.“Facing shrinking income, brokerage firms have no choice… Source link

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Dozens of companies suspend fundraising as investigation into audit firm Ruihua enters fourth week

Dozens of mainland companies have suspended their fundraising plans or in some instances even halted their initial public offerings, as the economic fallout continues to mount in the four weeks since China’s second largest accounting auditor was placed under investigation.A total of 42 listed firms have announced they have suspended their fundraising plans after their auditor Ruihua Certified Public Accountants was placed under investigation in early July, according to filings made to the… Source link

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Is Star Market, Xi Jinping’s pet project to boost tech fundraising, just another casino for excitable stock market punters?

Seventy-year-old Jiang Guangyuan was bursting with confidence as he watched his shares on Shanghai’s Technology and Innovation Board surge to dizzy heights on Monday morning.Having bought them immediately after trading began, it appeared his faith in the Star Market, as China’s answer to the Nasdaq is also called, had been handsomely rewarded as the share price of Western Superconducting Technologies and its 24 fellow debutants skyrocketed.He had every reason to hope the rally would continue… Source link

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Anheuser-Busch scraps its US$9.8 billion IPO for Budweiser in Hong Kong, scuppering world’s largest fundraising plan of 2019

Anheuser-Busch InBev has scrapped what could have been the largest global initial public offering (IPO) of 2019 in Hong Kong, in a setback to the city’s plan to catch up with New York as the world’s fundraising hub.“The company is not proceeding with this transaction due to several factors, including the prevailing market conditions,” Anheuser-Busch said in its announcement to scupper its US$9.8 billion IPO. “The company will closely monitor market conditions, as it continuously evaluates its… Source link

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AngelHub, Hong Kong’s first equity crowdfunding platform, shortlists five start-ups for fundraising

AngelHub, Hong Kong’s first equity crowdfunding platform, has selected five start-ups out of 250 candidates to raise funds just two months after it was licensed by the city’s Securities and Futures Commission, its chief executive said last week.Karen Contet Farzam, the company’s co-founder and CEO, said AngelHub aimed to help 100 start-ups raise funds over the next three years. While, on average, these deals are expected to raise between US$500,000 to US$2 million, some would also net up to US… Source link

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Beijing eases short-term liquidity for smaller financial firms, orders fifth brokerage in a week to lift fundraising quota

Shenzhen-based brokerage GF Securities said on Monday it had been asked to lift the quota on short-term fundraising by Beijing, a move that may boost lending to smaller financial firms.“The company has received a notice from the People’s Bank of China [PBOC] to improve the upper limit to 17.6 billion yuan [US$2.6 billion] for outstanding commercial bill issuance,” it said in a filing to the Shenzhen Stock Exchange. Commercial bills are a key form of short-term fundraising in the interbank… Source link

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Zhang Xiaolei, founder of Chinese fintech firm Qbao, to serve 15-year jail firm for fraudulent fundraising

Zhang Xiaolei, a prominent figure in China’s fintech sector, was sentenced to 15 years in prison for his involvement in a Ponzi scheme that involved at least 50 billion yuan (US$7.25 billion) of investors’ money.The Nanjing Intermediate People’s Court in Jiangsu province handed down the punishment to Zhang, 50, after charging him with financial fraud and embezzling depositors’ money through illegal fundraising, and confiscated 100 million yuan of his assets, Xinhua reported on Friday.Zhang, who… Source link

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China considers unwinding rules it put in place after the last equity market crash; proposed change to ease company fundraising

China’s securities regulator is considering scrapping profitability requirements in mergers and acquisitions (M&A) for listed companies, as a way to facilitate secondary fundraising as the trade war weighs on Chinese growth and threatens to push the global economy into recession next year.Under consideration is an amendment to remove profitability requirements in M&A deals involving listed companies, the China Securities Regulatory Commission (CSRC) said in a statement issued on its official… Source link

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