Latest news with #HongKongExchangesandClearing
Yahoo
22-07-2025
- Business
- Yahoo
Asia Morning Briefing: U.S. BTC ETF Inflows Dwarf Hong Kong's as Local Investors Stick With Stocks
Good Morning, Asia. Here's what's making news in the markets: Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk's Crypto Daybook from CoinShares continues to highlight the gap in investor enthusiasm between the U.S. and Hong Kong when it comes to bitcoin (BTC) ETFs and other listed digital asset products. Digital asset products in the U.S. generated $4.36 billion in inflows last week, accounting for nearly the entire global total of $4.39 billion, according to CoinShares. In Hong Kong, inflows into crypto ETFs totaled just $14.1 million (USD). The disparity comes despite strong demand for exchange-traded products in Hong Kong overall. From July 14 to 18, Hong Kong-listed ETFs saw approximately $880 (USD) million in net inflows, according to data from Hong Kong Exchanges and Clearing. Most of this capital was invested in equity-focused funds that track local stocks and sector themes, with crypto accounting for only 1.6 percent of total ETF inflows. Even within the U.S., where equity ETFs saw net outflows of $11.75 billion and bond funds brought in $5.55 billion, crypto funds defied the trend by drawing in capital at record pace. The contrast highlights the increasing importance of crypto as a distinct asset class in American portfolios, whereas in Hong Kong, investors continue to view it as a niche asset class. However, a path may be forming that could shift the dynamic. At Consensus Hong Kong in February, Yifan He, CEO of Red Date Technology, suggested a potential regulatory route for mainland Chinese investors to gain exposure to crypto, without breaking mainland China's crypto ban. Speaking on stage, He pointed to the Qualified Domestic Institutional Investor (QDII) program, which already allows select mainland investors to purchase U.S.-listed ETFs using RMB. A similar structure, he argued, could be adapted to Hong Kong's spot bitcoin and ether ETFs. Under this model, mainland investors would not directly hold crypto, but would gain exposure through licensed intermediaries, mirroring how they currently trade Hong Kong or overseas equities. "If they have a system for you to buy and sell in RMB, but never move money outside China, then it's just another regulated investment product," He said. While capital controls remain the core barrier, the proposal reflects a changing tone in Beijing. "I see some signal from financial regulators," He said at the time. "They're beginning to talk about bitcoin, saying we need to pay more attention and do more research on digital assets." This would not amount to China unbanning crypto, but rather integrating it within an approved sandbox. Such a move could dramatically increase participation in Hong Kong's crypto ETFs, which have struggled to gain traction despite strong infrastructure and regulatory clarity. For now, though, U.S. dominance in crypto fund flows remains unchallenged. However, if Beijing were to permit crypto exposure through Hong Kong's ETFs, the flow dynamics in the region could look significantly different in the years ahead. Market Movements: BTC: Bitcoin (BTC) is currently trading above $117,000, remaining locked in a tight range. ETH: Ethereum (ETH) surged near $3,800 on Monday, up 13% year-to-date, as analysts pointed to signs of a potential turnaround after months of underperformance. Gold: Gold rose 1.2% to $3,391.90 on Tuesday, supported by a weaker dollar and growing expectations of lower interest rates. Nikkei 225: Japanese stocks rose as markets reopened Tuesday, with the Nikkei 225 up 1.12% to 40,254.18, as investors reacted to the ruling party's loss of its upper house majority in weekend elections. S&P 500: US stocks closed mixed Monday, but the Nasdaq and S&P 500 still hit fresh record highs. Elsewhere in Crypto: Robinhood CEO Acknowledges OpenAI Crypto Stock 'Controversy', But Is Doubling Down (Decrypt) Pudgy Penguins CEO predicts NFT mania, crypto gaming comeback (Blockworks) BitGo Files to Go Public as Crypto Market Surges Past $4 Trillion (CoinDesk)Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
BusinessToday
20-07-2025
- Business
- BusinessToday
Hong Kong Stocks Rally As Hang Seng Hits Multi-Year High
Hong Kong shares climbed sharply this week, with the Hang Seng Index (HSI) surging to its highest level since early 2022, lifted by broad-based sector gains and renewed investor optimism across Asia. The HSI advanced from around 24,280 on July 14 to close at 24,825.66 on July 18, marking a robust 2.2% weekly gain. The rally mirrored upbeat sentiment in regional markets, as the MSCI Asia-Pacific ex-Japan index also hit a multi-year high, buoyed by strong US economic data and positive corporate earnings. All sectors contributed to the advance, with Chinese blue-chip stocks leading gains. Investors shrugged off lingering tariff concerns and focused on improving macro signals from the US and China. The Hong Kong Exchanges and Clearing (HKEX) also announced major infrastructure updates, including a proposal to shorten the equities settlement cycle from T+2 to T+1, aiming for implementation by 2027. This move aligns with global financial hubs and aims to reduce systemic risks. HKEX also launched a 30-year RMB interest rate swap under Northbound Swap Connect and introduced a new order routing service on its Integrated Fund Platform, reinforcing Hong Kong's position as a key cross-border financial centre. Outlook: With momentum building and HIS at a multi-year high, investors are eyeing this week's US macroeconomic data and developments in China's property sector for further direction. Analysts remain cautiously optimistic but note that volatility could return on shifting global trade and interest rate dynamics. Related
RTHK
08-07-2025
- Business
- RTHK
Beijing opens up southbound Bond Connect scheme
Beijing opens up southbound Bond Connect scheme Jiang Huifen, a senior official at the People's Bank of China, says the country will support more onshore investors to access offshore bonds. Photo: RTHK Bonnie Chan, chief executive of the Hong Kong Exchanges and Clearing, says China's bond market has huge room to grow. Photo: RTHK China's central bank said on Tuesday more mainland-based institutions would be allowed to invest offshore through the Bond Connect scheme, with authorities planning to open it up to non-banking investors. The scheme enables onshore investors to access Hong Kong's bond market. Currently, financial institutions not in the banking sector are excluded from the southbound leg of the trading link. Speaking at the Bond Connect Anniversary Summit 2025, Jiang Huifen, deputy director-general of the financial market department at the People's Bank of China, said the scheme was expanded to also cover brokerages, insurers, mutual funds and wealth managers. The move will provide wider access for onshore investors to international bonds traded in Hong Kong, including offshore yuan- and US dollar-denominated debt. According to Jiang, the quota under the Swap Connect scheme, which allows global investors to trade and clear onshore yuan interest-rate swaps, will also be increased. She added that China's bond market was growing following the emergence of the global tariff war, with domestic bonds held by overseas investors rising by nearly 200 billion yuan from about 4 trillion yuan at the start of the year. "We are actively studying other measures to promote the opening up of the bond market," she told participants in a video speech. "We will also enhance the facilitation level of cross-border investment and financing, promote the establishment of a one-stop account opening platform for overseas investors." Analysts believe the move by the central bank reflected Beijing's wider efforts to open up its financial system, improve two-way capital flows by loosening restrictions on financial flows, and enhance the global appeal of the yuan. Bonnie Chan, chief executive of Hong Kong Exchanges and Clearing, said China's bond market, already the second largest in the world, had room for growth with international investors accounting for only 3 percent of the total. "We don't expect international investors to maintain such a small exposure indefinitely. There is a huge amount of room for growth," she told event participants. "With global investors increasingly seeking diversification, there is a huge opportunity for that growth to happen in the coming years. "And with unique connect channels such as Bond Connect, this is where global investors will get the best access to China's growth opportunities." Eddie Yue, chief executive of Hong Kong Monetary Authority, also hailed the expansion of the southbound Bond Connect scheme. "This will open up more channels to meet the growing demand from mainland investors, addressing their needs for diversified asset allocation," he said. "It will also bolster the development of Hong Kong's bond market by widening the investor base and enhancing market liquidity,hence increasing Hong Kong's attractiveness to both bond issuers and global investors."
RTHK
06-07-2025
- Business
- RTHK
ETPs boosting stock market: Paul Chan
ETPs boosting stock market: Paul Chan Financial Secretary Paul Chan says ETPs provide more choices for investors as they are linked to different kinds of assets. File photo: RTHK Financial Secretary Paul Chan says Exchange Traded Products (ETPs) have contributed to the improving performance of the stock market in the first half of the year. Writing on his blog on Sunday, the minister said there are more than 210 ETPs listed on the local bourse and their combined market value of nearly HK$510 billion is up 30 percent from 2020. Chan said ETPs provide more choices for investors as they are linked to different kinds of assets. Chan also said the city's IPO performance is currently the best in the world, with more than HK$107 billion raised so far this year. Hong Kong Exchanges and Clearing has also received another 200 listing applications from Middle East and Southeast Asian enterprises. The finance chief added that the government will step up promotion of the local financial market, so worldwide investors understand Hong Kong's advantages and potential. Chan will head to Seoul this week to tell South Korean investors and financial institutions about the latest developments of the Hong Kong market.
The Star
04-07-2025
- Business
- The Star
Hong Kong's all-male boards are all but gone as firms embrace diversity
Hong Kong's bourse operator has declared victory in its quest to eliminate all-male boards from companies listed on the region's third-largest stock exchange, an improvement in corporate governance that analysts said would help attract international investors. Fewer than 10 of Hong Kong's around 2,600 listed companies had all-male boards as of the end of June, according to Hong Kong Exchanges and Clearing (HKEX). A spokesman said these exceptions were companies that had long been suspended from trading or were merely out of compliance temporarily because of a resignation. Eighty-five companies had all-male boards on January 1 when HKEX's ban on single-gender boards went into effect. In 2022, when the bourse operator unveiled the ban, more than 800 firms – or 40 per cent of listed companies – did not have a woman director. 'This requirement helped to create hundreds of new roles for female directors, reinforcing our commitment to fostering a more inclusive and diverse corporate environment and enhanced governance in our markets,' said Katherine Ng, HKEX's head of listing, in a statement to the Post. An example of a non-compliant company is property investment firm Paladin, which has six male board members. Its shares were suspended from trading in November because of insufficient business operations. To resume trading, the exchange would require a new business operation plan and at least one woman would need to join the board, the company said in February. More than 800 women had been added to listed companies' boards in the past four years, HKEX said. As of June, 21 per cent of directors were women, up from 20 per cent six months ago and 16 per cent four years ago when the single-gender ban was unveiled. The number of boards with multiple women increased to 43 per cent as of June from 35 per cent in 2022, and 21 per cent of listed companies now had boards where women accounted for a third of the directors. 'Ensuring more women on boards is a fundamental reform for listed companies anywhere, and it is confidence-building for investors to see HKEX taking definitive measures to move this along,' said Damien Green, a director of the Financial Services Development Council, a government agency that promotes the city as an international financial centre. Green cited the ban on all-male boards as a factor that helped the exchange's main board return to the top of the global league table for initial public offerings (IPOs) in the first half of the year. 'Strengthening corporate governance in the HKEX listing rules will not slow our market down but instead will help accelerate it, as international investors find yet another reason to have confidence in deploying their capital in Hong Kong,' he said. Funds from Hong Kong's IPOs soared eightfold to US$13.5 billion in the first six months, making the city's exchange the world's top IPO venue for the first time since 2019, according to data from the London Stock Exchange Group. Despite progress, Hong Kong-listed companies trail their global peers in gender diversity on their boards. Globally, 27 per cent of board seats among around 3,000 companies in the MSCI All Country World Index were occupied by women as of 2024, up 1.5 per cent from a year earlier, MSCI said in February. Edmund Wong, a lawmaker for the accountancy sector, said he supported HKEX in promoting gender diversity, but added that the ability of directors was also important and that women with relevant experience could be in short supply in certain sectors. 'Listed companies in the construction sector or engineering may not easily find a lot of women,' Wong said. -- SOUTH CHINA MORNING POST
