Bottom line: Minsheng Bank’s $1 billion deal to buy Quam could be on the brink of collapse, the victim of rapidly tumbling sentiment towards Chinese and Hong Kong brokerages amid China’s stock market sell-off.
Minsheng’s HK brokerage buy on brink of sinking?
What a difference a year makes. At this time last year stock brokers in China and nearby Hong Kong were a hot ticket, attracting billions of dollars as investors bet on their huge growth potential tied to booming stock markets in both places. But that enthusiasm has quickly evaporated as China’s stock markets undergo a massive correction, which may be a major factor behind the sputtering of a major acquisition in the space.
The deal I’m referring to is the previously announced purchase of Hong Kong brokerage Quam (HKEx: 952) by Minsheng Bank (HKEx: 1988; Shanghai: 601988), China’s oldest privately owned bank. Minsheng has just announced that a deadline for it to close the Quam investment, worth nearly $1 billion, has passed without closure, hinting the deal may be on the brink of collapse. Read Full Post…
Bottom line: Chinese brokerages will embark on a buying binge for targets in Hong Kong and debt-strapped European countries, with as many as 3 or 4 more deals likely this year after Everbright’s purchase of SHK Financial.
Everbright buys HK brokerage
Everbright Securities (Shanghai: 601788) is joining the list of Chinese brokerages that have suddenly become quite acquisitive, with word that it will buy the brokerage arm of Hong Kong real estate giant Sun Hung Kai (HKEx: 16). Everbright’s move comes amid a flurry of other activity that has seen Chinese brokerages forge new tie-ups and raise big funds for M&A as they seek to expand abroad. Hong Kong looks set to emerge as one of the most popular targets for new tie-ups, thanks to its status as a crossroads between the Chinese and international investment communities. Read Full Post…
Bottom line: New mega fund-raising by Citic and Galaxy Securities could presage a flurry of global buying in the year ahead as non-banking financial firms look to expand abroad.
Citic raises $10 billion
Massive new fund raising by 2 major Chinese financial firms is showing that these companies remain an attractive option for international investors, even as traditional banks have become a pariah due to their huge volumes of bad debt. The deals by financial conglomerate Citic Ltd (HKEx: 267) and Galaxy Securities (HKEx: 6881) will raise a collective $12.3 billion, and could also presage a new wave of global buying by fast-growing Chinese financial firms outside the nation’s traditional banks. Read Full Post…
Bottom line: Chinese brokerages are in a fund-raising frenzy to take advantage of strong market sentiment, but their shares could pull back sharply in the second half of next year if China’s stock market rally runs out of steam.
Guosen shares soar in trading debut
It’s hard to read the financial headlines these days without seeing a story about the massive recent rally in Chinese brokerage stocks, which is being fueled by several factors. The brokerages themselves haven’t been blind to the fact, and are racing to take advantage of the positive sentiment to raise big chunks of new cash. Now leading brokerage Citic Securities (HKEx: 6030; Shanghai: 600030) and mid-sized player Guosen (Shenzhen: 002736) have joined the binge, with new share issues that could end up collectively raising up to $6.5 billion. Read Full Post…
Bottom line: Haitong’s new share offer is capitalizing on strong sentiment toward brokerages and could be used to fund an overseas purchase, while Wanda’s theme park foray looks too aggressive and is likely to run into problems.
Haitong raises $3.9 bln in share sale
Big fund-raising is in the headlines today as we head into the end of 2014, with real estate giant Dalian Wanda continuing to talk up its upcoming blockbuster IPO as Haitong Securities (HKEx: 6837; Shanghai: 600837) takes advantage of positive market sentiment to make a major new share float. Both plays come as Hong Kong and the US get set to officially wrap up a banner year for fund raising by Chinese companies, fueled by strong investor sentiment. Everyone is racing to finish their fund raising before December 31, since the first quarter of the year is typically a quiet period for such activity and there’s no guarantee this wave of positive sentiment will last into 2015. Read Full Post…
Bottom line: Haitong’s purchase of a Portuguese investment bank marks the start of a new wave of cross-border tie-ups in the financial services sector, which could fuel a rally in stocks of Chinese brokerages.
Haitong eyes Portuguese investment bank
A new wave of Sino-foreign tie-ups in the financial services arena could be taking shape, with word that China’s Haitong Securities (HKEx: 6837; Shanghai: 600837) is in talks to buy a Portuguese investment bank. I predicted just a couple of weeks ago that such a wave of tie-ups could be coming, following the launch of a historic Hong Kong-Shanghai financial link that will give average western and Chinese investors access to each other’s stock markets for the first time. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 5. To view a full article or story, click on the link next to the headline.
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Best Buy (NYSE: BBY) To Sell Its Five Star Business In China (Businesswire)
Haitong Securities (Shanghai: 600837) In Talks For Portuguese Investment Bank (English article)
Intel (Nasdaq: INTC) To Invest $1.6 Bln In China Factory (English article)
E-House (NYSE: EJ) Gives Details of Partial Spin-off Of Leju (NYSE LEJU) Shares (PRNewswire)
P&G (NYSE: PG) Sells China’s Biggest Battery Maker To CDH For $600 Mln (English article)
The following press releases and media reports about Chinese companies were carried on April 21-23. To view a full article or story, click on the link next to the headline.
The following press releases and media reports about Chinese companies were carried on March 13. To view a full article or story, click on the link next to the headline.
The following press releases and media reports about Chinese companies were carried on December 10-12. To view a full article or story, click on the link next to the headline.
