Renminbi Depreciation and the Hong Kong Economy
|
|
- Cornelia Victoria Cole
- 7 years ago
- Views:
Transcription
1 Thomas Shik Acting Chief Economist Renminbi Depreciation and the Hong Kong Economy If the recent weakness of the renminbi persists, it is likely to have a positive direct impact on the Hong Kong economy. The indirect impact, however, is harder to estimate. It may boost trade and hence economic growth. Tourists from mainland China may spend less, but net exports of travel services represented only 5.6% of Hong Kong s gross domestic product (GDP) in That being said, the further economic slowdown on the Mainland and the recent stock market correction have resulted in an observable increase in uncertainty as regards the Hong Kong economy. This has increased the downside risk to our forecast for Hong Kong s 2015 GDP growth, which currently stands at 2.5%. Sep/Oct 2015
2 The impact of the RMB depreciation On August 11, the People s Bank of China (PBOC) changed the way it sets the daily mid-rate for the renminbi (RMB) from which the currency is allowed to fluctuate up to 2% in either direction by referring to the closing rate of the interbank foreign exchange market on the previous day. The RMB dropped by about 3% against the US dollar (USD) in the two days immediately following the announcement but has since stabilised following an announcement by the PBOC on August 13 that there was no basis for the RMB to continue to depreciate (Exhibit 1). On retail sales If depreciation in the RMB persists, it is likely to be negative for Hong Kong retail sales as goods being sold to tourists from mainland China may become more expensive. For the first seven months of the year, Mainland tourists accounted for 78% of total visitor arrivals (Exhibit 2). In 2014, about 80% of tourist spending came from Mainland visitors (Exhibit 3). Retail sales only covers consumer spending on goods and does not include spending on services such as entertainment and transport. In this regard, tourist spending on shopping is included in retail sales, but tourist spending on entertainment, tours and similar items is not. Our calculations suggest that spending by Mainland visitors as covered by tourist spending and retail sales represented about 38% of Hong Kong s retail sales in 2014 (Exhibit 4). Exhibit 1: Renminbi Mid-rate & Spot Rates Exhibit 2: Tourist Arrivals 2
3 Exhibit 3: Tourist Spending for 2014 HKD mn Same-day visitor spending Total (1) 79,744 Mainland China (2) 76,076 % share 95% HKD mn Overnight visitor spending Total (3) 221,048 Mainland China (4) 166,027 % share 75% Overall visitor spending Total (1) + (3) 300,792 Mainland China (2) + (4) 242,103 % share 80% Source: Hong Kong Tourism Board, Hang Seng Bank Exhibit 4: Mainland Tourists Spending & Retail Sales for 2014 HKD mn HKD mn Retail sales value 493,236 Overall visitor spending 300,792 - same-day vistor spending 79,744 - by Mainland tourists 76,076 - on shopping (included in retail sales) (1) 70,293 - overnight vistor spending 221,048 - by Mainland tourists 166,027 - on shopping (included in retail sales) (2) 119,270 Mainland tourists' spending as part of retail sales (1)+(2) 189,563 - % share 38% Source: Hong Kong Tourism Board, Hang Seng Bank 3
4 If the RMB weakens by 5% in a year compared with the rate before the August 11 announcement and Mainland tourists cut their spending by the same percentage, then Hong Kong s retail sales will likely drop by 1.9 percentage points. In this regard, the direct impact of the RMB depreciation is modest. That said, local consumer sentiment and hence household consumption may be adversely affected by the reduction in spending by Mainland tourists and effect of this indirect impact is hard to estimate. On trade The RMB s persistent weakness may also influence the Hong Kong economy through the trade channel. 1 A weaker RMB may boost the Mainland s net exports, which, in turn, may lead to a rise in Hong Kong s re-exports from the Mainland but a decline in Hong Kong s domestic exports and re-exports to the Mainland. The net effect, while uncertain, is likely to be positive as Hong Kong s re-exports from the Mainland have been bigger in size than Hong Kong s total exports to the Mainland over recent years (Exhibit 5). The economic benefits would be even greater if we consider that the profit margins generated from re-exports from the Mainland are higher than those generated from re-exports to the Mainland. Data for the recent past is not available, but figures in previous years show that the former had consistently been more than double the latter and thus we can safely assume that this is still more or less true (Exhibit 6). Exhibit 5: Hong Kong s Trade with Mainland China Exhibit 6: Re-export Margins (by origin of country) % China Others Source: Census & Stat. Dept., HKMA, Hang Seng Bank 1 The Hong Kong Monetary Authority, Quarterly Bulletin, June
5 Summary RMB depreciation may boost trade but dampen retail sales in Hong Kong. The former may contribute to faster gross domestic product (GDP) growth in the city, but the implication of the latter is ambiguous as Hong Kong imports most of its goods from abroad. In other words, Hong Kong s retail sales and imports of goods could both decline on the back of RMB depreciation. In the calculation of GDP, tourist spending is counted as net exports of travel services, which represented only 5.6% of GDP in 2014 (Exhibit 7). As such, the impact of the RMB s decline on GDP through tourist spending is likely to be small. Overall, therefore, RMB depreciation may have a positive direct impact on the Hong Kong economy. But we reiterate that the indirect impact is hard to estimate. For example, a fall in spending by Mainland visitors may hit local consumer confidence, and a decline in the value of RMB assets held by Hong Kong residents may dampen household consumption. Exhibit 7: Net Exports of Travel Services (% of GDP) % Hong Kong Economic Outlook In the month after the PBOC changed the way it sets the daily mid-rate for the RMB, the currency moved in a tight range of between 6.37 and 6.40 per USD, representing a fall of only 2.7 to 3.1%. Considering that a sharp depreciation is unlikely in the near term, such currency movements should not have a significant impact on the Hong Kong economy. 5
6 On the other hand, we have observed an increase in the downside risk to Hong Kong s economic growth arising from further economic slowdown on the Mainland and the recent stock market correction. Fixed-asset investment growth on the Mainland fell to a multi-year low of 10.9% in August. As Hong Kong s economic cycles become more closely aligned with those of the Mainland economy (Exhibit 8), our view is that the risk of Hong Kong s growth being adversely affected by the Mainland economic slowdown is increasing. Our calculations suggest that the Hong Kong economy has had a rising positive correlation with the Mainland economy in recent years, and that this correlation has even been higher than that between the economies of Hong Kong and the US although that is possibly because of cyclical factors or, in economic terms, irregular variations (Exhibit 9). 2 But there are other indications that the economic relationship between Hong Kong and the Mainland is getting closer. The Mainland s share of Hong Kong s total trade has increased to over 50% from 38% in Mainland tourists now account for 78% of total visitor arrivals, up from around 25% over the same time period. In addition, turnover on the Hang Seng China Enterprises Index is now equivalent to about 74% of that on the Hang Seng Index (HSI), up from 61% just three years ago. Exhibit 8: GDP Growth Exhibit 9: GDP Correlation (correlation coefficient) Hong Kong with: Mainland China US Source: CEIC, Hang Seng Bank 2 The Hong Kong Monetary Authority, Quarterly Bulletin, September
7 Against this backdrop, a key question is how much the Mainland economic slowdown could affect Hong Kong s growth. Our analysis of this issue last year determined that a slowing of the Mainland s economy could affect trade, prices and financial activity in Hong Kong. Our findings, which we believe are still valid for reference purposes, suggested that a drop of 0.2 to 0.7 percentage points in Mainland GDP growth would reduce Hong Kong s growth by 0.3 to 0.5 percentage points and that the impact would be more on investment than on consumption or trade (Exhibit 10). 3 Exhibit 10: Estimated Impact of Slowing Mainland Growth on Hong Kong Impact on Hong Kong economy: Assuming Mainland GDP Growth: Down by 0.2 ppt. Down by 0.7 ppt. GDP ppt ppt. Private consumption ppt ppt. Investment ppt ppt. Total exports ppt ppt. Inflation ppt ppt. Note: ppt. stands for percentage point Source: Hang Seng Bank Another source of risk would be the recent stock market adjustment, which has seen the HSI fall by around 4,500 points, or over 17%, since the start of July. The HSI is widely seen as a forward-looking barometer for the Hong Kong economy (Exhibit 11) and its fall may lead to a reduction in household wealth and, hence, consumption. Estimating this negative wealth effect from declining share prices is never easy, but we can view the issue from two different angles. First, the Mainland s stock market boom and the resulting 17.4% growth in financial services activity during the first six months of 2015 were cited by many as the main reason for the economy achieving 7% growth in the first half of the year. In Hong Kong, financing and insurance activity accounts for about 16.4% of GDP. By our calculation, it grew 6% on average and contributed 1.1 percentage points to the 2.6% GDP growth recorded for the first half of the year. 3 Hang Seng Bank, Hong Kong Economic Monitor, April
8 It was about four years ago when the HSI last experienced a decline of over 17%. The index dropped by about 4,800 points, or 22%, in the two months to September In the following quarter, the fourth quarter of 2011, financing and insurance activity contracted by 0.8% and reduced GDP growth by 0.2 percentage points (Exhibit 12). If history is any guide, financing and insurance activity might therefore make no or a slightly negative contribution to GDP in the third or fourth quarter of this year. Exhibit 11: GDP Growth vs Hang Seng Index Exhibit 12: GDP vs Financing & Insurance Activity Second, with the recent stock slide, Hong Kong s total stock market capitalisation has fallen by about HKD4.7 trillion since the start of July to around HKD24 trillion. According to the latest Cash Market Transaction and Retail Investor surveys conducted by the Hong Kong Exchanges and Clearing Limited, local retail investors who total about million persons, or about 36.4% of the Hong Kong adult population accounted for about 20% of the total stock market turnover in 2013/14 (Exhibit 13 & 14). This suggests that every local retail stock investor has lost about HKD415,000 on average, which is a significant figure when compared to the current median monthly household income of HKD24,500 or the 2014 GDP per capita of HKD311,000. In order to bear recent financial losses from shares, investors are likely to cut their spending over the coming months. Perhaps more importantly, if more than one in three people are spending less, the rest of the population may also shift towards greater thrift. And this likely reduction in spending would, in turn, weigh heavy on overall economic growth. 8
9 Conclusion If the depreciation trend in the RMB persists, it may boost trade but dampen retail sales in Hong Kong. Overall, its direct impact on the Hong Kong economy is likely to be positive as an increase in trade should lift growth and falling retail sales will likely also mean falling imports. However, the indirect impact of depreciation is hard to estimate. Given that the RMB has stabilised and a sharp depreciation is unlikely, the currency s recent weakness should not have a significant impact on Hong Kong s economic growth. That said, we have observed an increase in the downside risks to growth arising from further economic slowdown on the Mainland and the recent stock market correction. Our previous work indicated that a drop of 0.2 to 0.7 percentage points in Mainland GDP growth would reduce Hong Kong s growth by 0.3 to 0.5 percentage points. Financing and insurance activity currently accounts for about 16.4% of GDP in Hong Kong and the stock market adjustment suggests that it may make no or even a slightly negative contribution to GDP in the third or fourth quarter this year. Falling share prices may also discourage consumers from spending. These factors have increased the risks to our forecast for Hong Kong s 2015 GDP growth, which we currently have at 2.5%. Exhibit 13: Stock Market Trading (by investor type) (Oct 2013 Sep 2014) % Overseas institutional investors 33.8 Local institutional investors 24.4 Local retail investors 20.5 Exhibit 14: % of Adult Population as Stock Investors % Stock Exchange Participants principal trading Overseas retail investors Source: HKEx, Hang Seng Bank Source: HKEx, Hang Seng Bank 9
10 Hong Kong Economic Monitor Statistics September 2015 GDP Retail sales Nominal Real Value Volume Exports Foreign trade HKD bn yoy (%) yoy (%) yoy (%) HKD bn yoy (%) HKD bn yoy (%) HKD bn (%) yoy (%) , , , , , , , , , , , , , , , F 2, , , Imports Trade balance Unemployment rate (s.a.) Inflation Q Q , Q , Q , Q Q , Q3 NA NA NA NA NA NA NA NA NA NA NA May 2015 NA NA Jun NA NA Jul NA NA Aug NA NA Sep NA NA NA NA NA NA NA NA NA NA NA YTD 1, , , Total deposit RMB deposit Total loan Money supply (M3) Residential property price Tourist arrivals HKD bn yoy (%) RMB bn yoy (%) HKD bn yoy (%) yoy (%) Index ytd (%) '000 yoy (%) , , , , , , , , , , , , , , , , Q , , , Q2 9, , , Q3 9, , , Q4 10, , , , Q , , , Q2 10, , , Q3 NA NA NA NA NA NA NA NA NA NA NA May , , , Jun 10, , , Jul 10, , , Aug 10, , NA NA 5, Sep NA NA NA NA NA NA NA NA NA NA NA YTD 10, , , NA: not available; (A)= actual; (F)= HASE forecast; yoy= year-on-year; ytd= year-to-date Source: Census & Statistics Dept., HKMA, Rating & Valuation Dept., Hong Kong Tourism Board, Macrobond, CEIC, Hang Seng Bank 10
11 GDP Growth Consumer Price Inflation Unemployment Rate (s.a.) Retail Sales Value Exports & Imports Residential Property Price Index 11
12 Disclaimer This document has been issued by Hang Seng Bank Limited ( HASE ) and the information herein is based on sources believed to be reliable and the opinions contained herein are for reference only and may not necessarily represent the view of HASE. The research analyst(s) who prepared this report certifies(y) that the views expressed herein accurately reflect the research analyst s(s ) personal views about the financial instrument or investments and that no part of his/her/their compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report. Nothing herein shall constitute as offers or solicitation of offers to buy or sell foreign exchange contracts, securities, financial instruments or other investments. Re-distribution of any part of this document by any means is strictly prohibited. The information contained in this document may be indicative only and has not been independently verified and no guarantee, representation, warranty or undertaking, expressed or implied is made as to the fairness, accuracy, completeness or correctness of any information, projections or opinions contained in this document or the basis upon which any such projections or opinions have been based and no responsibility or liability is accepted in relation to the use of or reliance on any information, projections or opinions whatsoever contained in this document. Investors must make their own assessment of the relevance, accuracy and adequacy of the information and opinions contained in this document and make such independent investigations as they may consider necessary or appropriate for the purpose of such assessment. All such information, projections and opinions are subject to change without notice. HASE and its affiliates may trade for their own account in, may have underwritten, or may have a position in, all or any of the securities or investments mentioned in this document. Brokerage or fees may be earned by HASE or its affiliates in respect of any business transacted by them in all or any of the securities or investments referred to in this document. The investments mentioned in this document may not be suitable for all investors. Investors must make investment decisions based on their own investment objectives, financial position and particular needs and consult their own professional advisers where necessary. This document is not intended to provide professional advice and should not be relied upon in that regard. No consideration has been given to the particular investment objectives, financial situation or particular needs of any recipient. Investment involves risk. Investors should note that value of investments can go down as well as up and past performance is not necessarily indicative of future performance. This document does not purport to identify all the risks that may be involved in the securities or investments referred to in this document. 12
Taking stock of China s external debt: low indebtedness, but rapid growth is a concern
1991 1993 1995 1997 1999 21 23 25 27 29 211 213 1991 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 27 28 29 21 211 212 213 ECONOMIC ANALYSIS Taking stock of China s external debt: low indebtedness,
More informationHong Kong Economic Update MAY 2014
Hong Kong Economic Update MAY 2014 Summary Economy Hong Kong s economy grew 2.5 per cent (year-on-year) in the first quarter. This is the slowest quarterly growth in 18 months and is lower than the market
More informationECONOMIC REVIEW(A Monthly Issue) March, April, 2015 2014
ECONOMIC REVIEW(A Monthly Issue) March, April, 2015 2014 Economics & Strategic Planning Department http://www.bochk.com Effects The of Reasons CNH Exchange Why the Rate Singapore on Offshore Economy RMB
More informationChina Property Sector Expecting lower policy risk due to stabilizing home prices
19 September 2012 Equity Focus Key Data Average FY12E PE (x) 5.69 Average FY12E PB (x) 1.14, ABCI Securities HSCIPC performance (%) Absolute Relative* 1-mth 6.3 3.8 3-mth 10.3 4.5 6-mth 6.2 7.7 *Relative
More informationDanske Bank May 4th 2016 Economic Update,
Monthly update: 4 May 2016 Danske Bank Chief Economist, Twitter: angela_mcgowan Local job and investment announcements during April 2016: Over the month of April 2016 there were no new job announcements
More informationHong Kong. abc. *Employed by a non-us affiliate of HSBC Securities (USA) Inc, and is not registered/qualified pursuant to FINRA regulations
July 212 Steven Sun* Equity Strategist The Hongkong and Shanghai Banking Corporation Limited +852 2822 4298 stevensun@hsbc.com.hk Roger Xie* Equity Strategist The Hongkong and Shanghai Banking Corporation
More informationASEAN Weekly Wrap. Indonesia fiscal deficit revised higher to 2.35% of GDP. Economic Update
Indonesia fiscal deficit revised higher to 2.35% of GDP Thailand s imports unexpectedly rise, but exports declined Indonesia s revised budget has been approved by the Parliament, where the country s GDP
More informationSatisfactory Top-Line; Disappointing Bottom-Line
: Tsingtao Brewery (00168 HK) 公 司 报 告 : 青 岛 啤 酒 (00168 HK) Satisfactory Top-Line; Disappointing Bottom-Line 销 售 增 长 理 想 但 盈 利 能 力 令 人 失 望 Sunny Kwok 郭 日 升 +852 2509 2642 sunny.kwok@gtjas.com.hk GTJA Research
More information1 MAS Survey of Professional Forecasters: December 2006
1 MAS Survey of Professional Forecasters: December 2006 Economic Policy Department June 2015 Probability (Per Cent) 2 MAS Survey of Professional Forecasters: June 2015 The June 2015 Survey was sent out
More informationSummary. Research Paper No. 22
Trading of Hong Kong Stocks by US and Japanese Residents Joseph Lee and Joanna Poon, Research Department of the Supervision of Markets Division 1 September 25 Summary On a monthly basis, trading of Hong
More informationMain Economic & Financial Indicators Russian Federation
Main Economic & Financial Indicators Russian Federation 02 NOVEMBER 201 NAOKO ISHIHARA ECONOMIST ECONOMIC RESEARCH OFFICE (LONDON) T +44-(0)20-777-2179 E naoko.ishihara@uk.mufg.jp Overview The Bank of
More informationBright Smart (1428 HK)
Equity Research Financials Bright Smart (1428 ) Hold (initiation) Target price: $1.70 Local broker with high ROE; initiate at Hold Local broker with expansion ambition Bright Smart is a securities, commodities
More information2013 Third Quarter Review October 25, 2013 1
October 25, 213 1 Panalpina Group October 25, 213 213 Third Quarter Review October 25, 213 2 Highlights and key figures Operating and financial review Outlook Growth in profitability and margins in the
More informationUS Labour Market Monitor July report set to attract much attention as both employment and growth have slowed in 2016
Investment Research General Market Conditions 02 August 2016 US Labour Market Monitor July report set to attract much attention as both employment and growth have slowed in 2016 Jobs report preview We
More informationGlobal Financials Update April 13, 2012
Global Financials Update April 13, 2012 Global Market Update After posting a fairly strong and consistent rally over much of the last six months, the global equity markets have changed course over the
More informationMonetary Policy Bank of Canada
Bank of Canada The objective of monetary policy may be gleaned from to preamble to the Bank of Canada Act of 1935 which says, regulate credit and currency in the best interests of the economic life of
More informationWeiqiao Textile Announces its 2015 Interim Results
Weiqiao Textile Announces its 2015 Interim Results Seize new opportunities in new normal development phase Continued leadership against the backdrop of industry changes Financial Summary Revenue was approximately
More informationCommodities not finding much traction despite USD weakness
Commodities not finding much traction despite USD weakness Commodities continued to show weakness into the second week of 2013 despite rising stock markets and a falling US dollar. Investors are generally
More informationThe U.S. and Midwest Economy in 2016: Implications for Supply Chain Firms
The U.S. and Midwest Economy in 2016: Implications for Supply Chain Firms Rick Mattoon Senior Economist and Economic Advisor Federal Reserve Bank of Chicago Right Place Supply Chain Management Conference
More informationFurther Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges
Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges Zhang Ying, Senior Economist In recent years, as the internationalization of the RMB has been steadily carrying out,
More informationChina s Unwinding Stock Market Bubble
China s Unwinding Stock Market Bubble The Chinese equity market is experiencing significant volatility, exhibiting the classic signs of a bubble fueled by changing government regulation. Chinese authorities
More informationChanges to China s Renminbi Exchange Rate. Wednesday, August 12, 2015
Changes to China s Renminbi Exchange Rate Wednesday, August 12, 2015 WHAT HAVE CHINESE POLICY MAKERS DONE IN REGARD TO SETTING THEIR EXCHANGE RATE? Each day at 9.15am in Beijing the People s Bank of China
More informationCinda International. Hold (Initiation) Target price: HK$1.55. Facing intense competition from Chinese brokers in HK; initiate at Hold
Equity Research Financials Cinda (111 HK) Hold (Initiation) Target price: HK$1.55 Facing intense competition from Chinese brokers in HK; initiate at Hold China Cinda s international business platform Cinda
More informationTHE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 HONG KONG REPORT
THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 HONG KONG REPORT 2 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 HONG KONG REPORT LEGAL NOTICE CPA Australia Ltd ( CPA Australia )
More informationRenminbi banking business in Hong Kong
Renminbi banking business in Hong Kong by the External Department Hong Kong s renminbi banking business was launched in early 24 to facilitate crossborder tourist spending and to further strengthen economic
More informationWhy Has Japan Been Hit So Hard by the Global Recession?
IMF STAFF POSITION NOTE March 18, 9 SPN/9/5 Why Has Been Hit So Hard by the Global Recession? Martin Sommer I N T E R N A T I O N A L M O N E T A R Y F U N D INTERNATIONAL MONETARY FUND Why Has Been Hit
More informationTough Quarters Ahead, Downgrade to Reduce
: Tsingtao Brewery (00168 HK) Sunny Kwok 郭 日 升 公 司 报 告 : 青 岛 啤 酒 (00168 HK) +852 2509 2642 sunny.kwok@gtjas.com.hk Tough Quarters Ahead, Downgrade to Reduce 未 来 数 季 情 况 更 严 峻, 下 调 至 减 持 GTJA Research 国
More informationFor Managing the. Hang Seng Index. Jun 2016 Version 1.4
For Managing the Hang Seng Index Jun 2016 Version 1.4 Amendment History Date Description 1.0 September 2011 First Issue 1.1 November 2013 Updated description of index universe in Section 3 - Constituent
More informationLIST OF MAJOR LEADING & LAGGING ECONOMIC INDICATORS
APRIL 2014 LIST OF MAJOR LEADING & LAGGING ECONOMIC INDICATORS Most economists talk about where the economy is headed it s what they do. Paying attention to economic indicators can give you an idea of
More informationStatement by. Janet L. Yellen. Chair. Board of Governors of the Federal Reserve System. before the. Committee on Financial Services
For release at 8:30 a.m. EST February 10, 2016 Statement by Janet L. Yellen Chair Board of Governors of the Federal Reserve System before the Committee on Financial Services U.S. House of Representatives
More informationISBANK EARNINGS PRESENTATION 2016 Q1
ISBANK EARNINGS PRESENTATION 2016 Q1 2016 Q1 Recent Developments in the Economy Binler Global Outlook Main Indicators of Turkey US EA Moderate expansion in the US economy Solid labor market data Still
More information1 MAS Survey of Professional Forecasters: December 2006
1 MAS Survey of Professional Forecasters: December 2006 Economic Policy Department June 2014 Probability (Per Cent) 2 MAS Survey of Professional Forecasters: June 2014 The June 2014 Survey was sent out
More informationOutlook for Australian Property Markets 2010-2012. Perth
Outlook for Australian Property Markets 2010-2012 Perth Outlook for Australian Property Markets 2010-2012 Perth residential Population growth expected to remain at above average levels through to 2012
More informationLongfor (960 HK) Unrated Real Estate Development Industry
20 Septemper 2012 Equity Focus Key Data Share price (HK$) 11.78 52Wk H/L(HK$) 13.5/6.5 Issued shares (mn) 5,167.3 Market cap (HK$mn) 60,974 30-day avg vol (HK$mn) 137.14 Auditors Deloitte Major shareholder:
More informationUS companies leading surge in M&A
The Deloitte M&A Index Q3 215 US companies leading surge in M&A Key points The first half of 215 has emerged as one of the strongest for M&A, with more than $1.8 trillion worth of deals announced globally,
More informationIntroductory Guide to RMB Currency Futures
Introductory Guide to RMB Currency Futures RMB Internationalisation The opening up of Mainland China now is creating more and more business opportunities. China is the second largest economy and a major
More informationCIO Flash Chinese equities: what happens next? July 8, 2015
CIO Flash Chinese equities: what happens next? July 8, 2015 +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH Market falls force
More informationGraduation Day: The Broadening Opportunity Set of MSCI Emerging Markets
Graduation Day: The Broadening Opportunity Set of MSCI Emerging Markets Last week, as students across the United States marched in commencement ceremonies, MSCI acknowledged the possible future inclusion
More informationResearch Commodities El Niño returns grains and soft commodities at risk
Investment Research General Market Conditions 20 May 2015 Research Commodities El Niño returns grains and soft commodities at risk Meteorologists now agree that El Niño has arrived and project that it
More informationEcon 202 Section 4 Final Exam
Douglas, Fall 2009 December 15, 2009 A: Special Code 00004 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 202 Section 4 Final Exam 1. Oceania buys $40
More informationCzech Economic Outlook and Prospects for the Exchange Rate Floor
Czech Economic Outlook and Prospects for the Exchange Rate Floor Vladimir Tomsik Vice-Governor Czech National Bank Small Talks Symposium 9 October 2015 Investor Seminar 10 October 2015 IMF/WB Annual Meeting
More informationSberbank Group s IFRS Results for 6 Months 2013. August 2013
Sberbank Group s IFRS Results for 6 Months 2013 August 2013 Summary of 6 Months 2013 performance: Income Statement Net profit reached RUB 174.5 bn (or RUB 7.95 per ordinary share), a 0.5% decrease on RUB
More informationBond Market Momentum, Valuation and Risks
Bond Market Momentum, Valuation and Risks New Zealand Fixed Income Monthly Commentary August 1 christian@harbourasset.co.nz + 89 Global bond yields stabilised in July, as markets weighed up two opposing
More informationDividend Stocks The Best Way to Buy China
Dividend Stocks The Best Way to Buy China The explosive economic growth China has experienced over the last two decades may be slowing, however, China still remains a very attractive long term growth market
More informationPrivate drilling fluid technology service leader
21 March 2012 Equity Research Report Company Research Petroleum & Petrochemical Sichuan Renzhi Oilfield Technology Services (002629) Investment value analysis report Private drilling fluid technology service
More informationTHE STATE OF THE ECONOMY
THE STATE OF THE ECONOMY CARLY HARRISON Portland State University Following data revisions, the economy continues to grow steadily, but slowly, in line with expectations. Gross domestic product has increased,
More informationShanghai-Hong Kong Stock Connect 2015.01.07
Shanghai-Hong Kong Stock Connect 2015.01.07 The launch of Stock Connect further expands the crossborder RMB investment channel Shanghai-Hong Kong Stock Connect officially launched on 17 Nov 2014, enabling
More informationMonetary policy assessment of 13 September 2007 SNB aiming to calm the money market
Communications P.O. Box, CH-8022 Zurich Telephone +41 44 631 31 11 Fax +41 44 631 39 10 Zurich, 13 September 2007 Monetary policy assessment of 13 September 2007 SNB aiming to calm the money market The
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Suvey of Macroeconomics, MBA 641 Fall 2006, Final Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Modern macroeconomics emerged from
More informationNAB Online Retail Sales Index In depth report July 2014
NAB Online Retail Sales Index In depth report July Table. Key online retail statistics Total online Index Domestic sales International sales May YOY growth (%) Jun Jul May MOM growth (% sa, 3mma) Jun Jul
More informationPROVINCIAL OUTLOOK UPDATE February 6, 2015
PROVINCIAL OUTLOOK UPDATE February 6, 2015 Real GDP growth 2015 Annual % change CANADA B.C. 2.4 2.7 2.9 3.1 Several developments have occurred since the publication of our most recent Provincial Outlook
More informationCIO Flash Chinese equities: what happens next? July 8, 2015
CIO Flash Chinese equities: what happens next? July 8, 2015 +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH +++ CIO FLASH Market falls force
More informationCompany Report. New China Life (1336 HK) Hold Life & Health Insurance Industry 2013E target price: HK$34.30 (from HK$24.
New China Life Company Report New China Life (1336 HK) Hold Life & Health Insurance Industry 2013E target price: HK$34.30 (from HK$24.85 previously) Key data H-share price (HK$) 31.45 Target price (HK$)
More informationSUB: STANDARD CHARTERED PLC (THE "COMPANY") STOCK EXCHANGE ANNOUNCEMENT
April 26, 2016 To, Ms. D'souza AVP, Listing Department National Stock Exchange of India Exchange Plaza Bandra Complex Bandra (East) 400 001 Limited SUB: STANDARD CHARTERED PLC (THE "COMPANY") STOCK EXCHANGE
More informationWhy ECB QE is Negative for Commodities. Investment Research & Advisory. Deltec International Group
Atul Lele alele@deltecinv.com +1 242 302 4135 David Munoz dmunoz@deltecinv.com +1 242 302 4106 David Frazer dfrazer@deltecinv.com +1 242 302 4156 Why ECB QE is Negative for Commodities Recent ECB Quantitative
More informationNEWS FROM NATIONALBANKEN
1ST QUARTER 2016 NO. 1 NEWS FROM NATIONALBANKEN PROSPERITY IN DENMARK IS KEEPING UP Since the crisis in 2008, the Danish economy has generated an increase in prosperity, which is actually slightly higher
More informationPossible Implications of Russia's Sanctions on Turkish Economy
Possible Implications of Russia's Sanctions on Turkish Economy December 2015 Eren Demir Assistant Economist Economic Research Division 1 After a Russian warplane violated Turkish airspace near the Syrian
More informationOverview of RMB Internationalisation
Overview of RMB Internationalisation Candy Ho Head of RMB Business Development, Asia Pacific Date: 8 May 2013 Why is RMB important? China overtook US as the largest goods trading nation in 2012 China:
More informationHow To Understand The Turkish Economy
BRSA Bank Only Macro Outlook Q1 GDP growth at 3.2%, mostly backed by net exports. Budget deficit was TRY 6.7 billion in H1 12, one third of Latest GDP figure is supportive of the soft landing the government
More informationChapter 12: Gross Domestic Product and Growth Section 1
Chapter 12: Gross Domestic Product and Growth Section 1 Key Terms national income accounting: a system economists use to collect and organize macroeconomic statistics on production, income, investment,
More informationTVN GROUP RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2015 WARSAW, AUGUST 4 TH, 2015
TVN GROUP RESULTS FOR THE SECOND QUARTER AND FIRST HALF OF 2015 WARSAW, AUGUST 4 TH, 2015 Disclaimer This presentation (the Presentation ) has been prepared by TVN S.A. (the Company ) solely for use by
More informationSBERBANK GROUP S IFRS RESULTS. March 2015
SBERBANK GROUP S IFRS RESULTS 2014 March 2015 SUMMARY OF PERFORMANCE FOR 2014 STATEMENT OF PROFIT OR LOSS Net profit reached RUB 290.3bn (or RUB 13.45 per ordinary share), compared to RUB 362.0bn (or RUB
More informationForecasting Chinese Economy for the Years 2013-2014
Forecasting Chinese Economy for the Years 2013-2014 Xuesong Li Professor of Economics Deputy Director of Institute of Quantitative & Technical Economics Chinese Academy of Social Sciences Email: xsli@cass.org.cn
More informationGhana's Economic Performance 2010
GHANA STATISTICAL SERVICE (GSS) Statistics for Development and Progress Ghana's Economic Performance 21 i n f i g u r e s P.O. Box GP 198, Accra www. statsghana.gov.gh 211 Ghana's Economic Performance
More information2013 Second Quarter Review July 26, 2013 1
213 Second Quarter Review July 26, 213 1 Panalpina Group Basel, July 26, 213 213 Second Quarter Review 213 Second Quarter Review July 26, 213 2 Highlights and key figures Operating and financial review
More informationResearch & Corporate Development DERIVATIVES MARKET TRANSACTION SURVEY 2009/10
Research & Corporate Development DERIVATIVES MARKET TRANSACTION SURVEY 2009/10 November 2010 CONTENTS Page 1. Introduction...1 2. Key findings... 3 3. Figures and tables... 7 3.1 Distribution of trading
More informationStrategy Document 1/03
Strategy Document / Monetary policy in the period 5 March to 5 June Discussed by the Executive Board at its meeting of 5 February. Approved by the Executive Board at its meeting of 5 March Background Norges
More informationJapan Economic Monthly
Japan Economic Monthly Sustained Strong Corporate Profits Point to Increasing Employment and Capital Expenditures REI TSURUTA TOORU KANAHORI ECONOMIC RESEARCH OFFICE 1 OCTOBER (ORIGINAL JAPANESE VERSION
More informationWOLSELEY PLC. m Q3 2014 Q3 2013 Change Change (at constant exchange rates) 3,115 3,229. Closed, disposed of or held for sale (2) (4)
WOLSELEY PLC 3 June 2014 Interim Management Statement for the third quarter to 30 April 2014 m Q3 2014 Q3 2013 Change Change (at constant exchange rates) change (3) Ongoing businesses (1) 3,048 3,074 (0.8%)
More informationEUROSYSTEM STAFF MACROECONOMIC PROJECTIONS FOR THE EURO AREA
EUROSYSTEM STAFF MACROECONOMIC PROJECTIONS FOR THE EURO AREA On the basis of the information available up to 22 May 2009, Eurosystem staff have prepared projections for macroeconomic developments in the
More informationStandard Chartered today releases its Interim Management Statement for the third quarter of 2015.
Standard Chartered PLC Interim Management Statement 3 November 2015 Standard Chartered today releases its Interim Management Statement for the third quarter of 2015. Bill Winters, Group Chief Executive,
More informationWeekly FX Insight. Weekly FX Insight. Dec 9, 2013 with data as of Dec 6. Citibank Wealth Management. FX & Eco. Figures Forecast
Citibank Wealth Management Weekly FX Insight Weekly FX Insight Dec 9, 2013 with data as of Dec 6 Market Review & Focus FX Analysis Weekly FX Recap 01 USD/JPY 04 NZD/USD 05 Upcoming Economic Figures GBP/USD
More informationTechnical Analysis in Vietnam s Equity Market
Technical Analysis in Vietnam s Equity Market This article analyses the usefulness of technical analysis in Vietnam s equity market. It starts of by giving a brief overview of the equity market and some
More informationIn line performance. Results update 4Q2015. Banks UAE 28 January 2016 DUBAI ISLAMIC BANK
28 Jan 15 28 Apr 15 28 Jul 15 28 Oct 15 DUBAI ISLAMIC BANK In line performance Results update 4Q2015 Banks UAE 28 January 2016 Dubai Islamic Bank s (DIB) reported net profit of AED865mn, in-line with our
More informationUnderstanding Currency
Understanding Currency Overlay July 2010 PREPARED BY Gregory J. Leonberger, FSA Director of Research Abstract As portfolios have expanded to include international investments, investors must be aware of
More information[Figure 1 on Page 6] [Survey of individual investors in Japan, the U.S. and China (H.K.)]
Twelfth Monex Global Retail Survey Individual investors expectations for the U.S. market grows. The DI of the forecast for world stock markets by individual investors for the coming three months remained
More informationRussia: Where to find new growth drivers?
Russia: Where to find new growth drivers? Sanna Kurronen Economist +38 4 68 369 sanna.kurronen@danskebank.com 14 February 213 Important disclosures and certifications are contained from page of this report.
More informationCHAPTER 5: MEASURING GDP AND ECONOMIC GROWTH
CHAPTER 5: MEASURING GDP AND ECONOMIC GROWTH Learning Goals for this Chapter: To know what we mean by GDP and to use the circular flow model to explain why GDP equals aggregate expenditure and aggregate
More informationEquity Sell-off Continues, Bonds Affected
Equity Sell-off Continues, Bonds Affected Executive Summary Portfolio Performance So Far The 1-month performance of all model portfolios have been affected by the recent sell-off in equities, with returns
More informationDBS BANK (HONG KONG) LIMITED
DBS BANK (HONG KONG) LIMITED INTERIM FINANCIAL DISCLOSURE STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2004 TABLE OF CONTENTS Page Unaudited consolidated profit and loss account 2 Unaudited consolidated
More informationEconomics 212 Principles of Macroeconomics Study Guide. David L. Kelly
Economics 212 Principles of Macroeconomics Study Guide David L. Kelly Department of Economics University of Miami Box 248126 Coral Gables, FL 33134 dkelly@miami.edu First Version: Spring, 2006 Current
More informationTurnover of the foreign exchange and derivatives market in Hong Kong
Turnover of the foreign exchange and derivatives market in Hong Kong by the Banking Policy Department Hong Kong advanced one place to rank sixth in the global foreign exchange market and seventh when taking
More informationBriefing to the Legislative Council Panel on Financial Affairs
HONG KONG MONETARY AUTHORITY Briefing to the Legislative Council Panel on Financial Affairs 19 November 2012 1. Assessment of Risk to Hong Kong s Financial Stability 2. Banking Supervision 3. Financial
More informationX. INTERNATIONAL ECONOMIC DEVELOPMENT 1/
1/ X. INTERNATIONAL ECONOMIC DEVELOPMENT 1/ 10.1 Overview of World Economy Latest indicators are increasingly suggesting that the significant contraction in economic activity has come to an end, notably
More informationChina Merchants Bank Co., Ltd. 2013 Annual Results Announcement
China Merchants Bank Co., Ltd. 2013 Annual Results Announcement Forward-Looking Statement Disclaimer This presentation and subsequent discussions may contain forward-looking statements that involve risks
More informationKuehne + Nagel International AG Analyst Conference Call First quarter 2016 results. April 19, 2016 (CET 14.00) Schindellegi, Switzerland
Kuehne + Nagel International AG Analyst Conference Call First quarter 2016 results April 19, 2016 (CET 14.00) Schindellegi, Switzerland Forward-looking statements This presentation contains forward-looking
More informationCallable Bull/ Bear Contracts (CBBC) Driving Investment Power
Callable Bull/ Bear Contracts (CBBC) Driving Investment Power T a b l e o f C o n t e n t s Basic Power One How do CBBC work? 4 Two How are CBBC priced? 5 Three Difference between Category R and N 6 Four
More informationNAB Online Retail Sales Index Indepth report October 2013
NAB Online Retail Sales Index Indepth report October Chart : Growth in online sales vs. retail sales (%, mom) - Apr- Jan- Oct- Jul- Apr- Online Index (sa, MMA) ABS retail sales (ex. takeaway food) (sa,
More informationCredit Opinion: BH Securities, a.s.
Credit Opinion: BH Securities, a.s. Global Credit Research - 19 Jul 2012 Prague, Czech Republic Ratings Category Outlook NSR Issuer Rating -Dom Curr Moody's Rating Stable Baa3.cz Contacts Analyst Phone
More informationConsumer Price Developments in December 2015
sdzkl1;yah Consumer Price Developments in December 2015 CPI-All Items inflation came in at -0.6% year-on-year (y-o-y) in December CPI-All Items inflation came in at -0.6% in December, compared to -0.8%
More informationIV. Special feature: Foreign currency deposits of firms and individuals with banks in China
Robert N McCauley (+852) 2878 71 RMcCauley@bis.org.hk YK Mo (+852) 2878 71 IV. Special feature: deposits of firms and individuals with banks in China In principle, an economy with capital controls can
More informationRMB solutions for importers and exporters
RMB solutions for importers and exporters Unravel the complexities of RMB Mind the gap The potential Share of world trade vs payments The proof of the pudding Percentage of China s trade in RMB RMB 13th
More informationRMB Internationalization and RMB Offshore Markets Development
RMB Internationalization and RMB Offshore Markets Development Dr. Qin Xiao Former Chairman, China Merchants Group and China Merchants Bank Council Member, Hong Kong Financial Services Development Council
More informationChina s Belt and Road Initiative: Assessing the Opportunities
Ryan Lam, CFA Senior Economist ryancwlam@hangseng.com China s Belt and Road Initiative: Assessing the Opportunities Good infrastructure connectivity is just a starting point for creating a Eurasian economic
More informationpercentage points to the overall CPI outcome. Goods price inflation increased to 4,6
South African Reserve Bank Press Statement Embargo on Delivery 28 January 2016 Statement of the Monetary Policy Committee Issued by Lesetja Kganyago, Governor of the South African Reserve Bank Since the
More informationLaunch Announcement for Callable Bull/Bear Contracts ("CBBCs") to be issued by
This announcement appears for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for the CBBCs described below. Hong Kong Exchanges and Clearing
More informationHong Kong Economic Update February 2015
Hong Kong Economic Update February 2015 Summary Economy 1. Hong Kong s economy grew 2.3 per cent in 2014 compared to 2.9 per cent in 2013. This was the third consecutive year where Hong Kong s growth fell
More informationFOMC preview Fed set to keep door open for a June hike
Investment Research General Market Conditions 14 March 2016 FOMC preview Fed set to keep door open for a June hike We expect the Fed to keep the Fed funds target rate unchanged at 0.25-0.50% at this week
More informationJanuary 2015 business.westernunion.com.au
Western Union Business Solutions Currency Outlook January 2015 business.westernunion.com.au What s coming up Steven Dooley Currency Strategist APAC 2 History in the making! These are historic times US
More informationCobalt Benchmark Report Q3 2015 A review of key company valuation metrics in the UK, European and US Application Software sectors
Cobalt Benchmark Report Q3 2015 A review of key company valuation metrics in the UK, European and US Application Software sectors London Hamburg Munich Silicon Valley Report highlights US SaaS companies
More information