On Tuesday last week, a company called Luen Wong Group, joined Hong Kong’s new-ish Growth Enterprise Market at 25 HK cents a share. By Thursday it was trading at 46 times that. Luen Wong is a civil engineering subcontractor. It’s a specialist in roads and footpaths and drainage.
The company has proved to be the most eye-catching of recent Hong Kong IPOs, but there are plenty of other examples of nuttiness.
A day before Luen Wong arrived, Hypebeast, an online fashion store, jumped 20 fold on the GEM. Read more
The London Metal Exchange said that the UK’s Financial Services Authority had given approval for its $2.2bn acquisition by Hong Kong Exchanges and Clearing. The transaction is expected to close next week.
But there are still hurdles. First, a court hearing. From the statement by HKEx: Read more
After a day of roiling rumours, James Quinn and Ben Harrington at the Telegraph told us on Thursday that Singapore Exchange is in
merger takeover talks with the London Stock Exchange.
While the tale includes the usual escape chutes (“banking sources indicated that any form of formal offer is still some time away,” etc) the idea has a clear ring of truth to it. Maybe. The talks are said to have grown out of discussions on the large cap cross-trading agreement between London and Singapore, unveiled just a week ago. Read more
Dark pools of liquidity could be on their way to the Hong Kong mainstream, and one of those pools is potentially being set up in Singapore this year. Is Asia catching up to the US and Europe in this shadowy arena?
Risk magazine has the story on an intriguing arms race in Asian equities innovation: Read more
Foolish Pru! You picked the wrong Asian secondary listing. For Monday has brought yet more news of the Shanghai Stock Exchange’s bid for complete world domination. (Quaking in your boots yet, Hong Kong?)
Specifically, SSE head Geng Liang has unveiled draft rules for his exchange’s long-promised international board, Reuters reported on Monday. Read more
Funny. The Ides of March isn’t until the 15th, but it looks like everyone’s out to get CESR.
The Committee of European Securities Regulators has already drawn fire for its short-selling disclosure proposals, which FT Alphaville previewed on Tuesday. Read more
Two of the biggest bourses in Asia and Latin America have for the first time overtaken rivals in New York and London by market capitalisation. Hong Kong’s HKEx and Brazil’s BM&F Bovespa have vaulted ahead of NYSE Euronext, Nasdaq OMX and the London Stock Exchange in the value of their own shares. HKEx is now the world’s second-largest exchange by market value, behind CME Group, the largest US futures exchange. BM&F Bovespa is fourth, after German’s Deutsche Börse, while the LSE has slipped to 10th place.