Macau Casinos Invest

iFeng: 澳门赌枱重新洗牌，"赌王"之女成最大赢家

Reuters: Macau casinos deal themselves a tough hand with big non-gaming investment pledges

Casinos have committed to investing a total of $15 billion in the coming decade, 90% of which must be spent on non-gaming.

But operators will find it hard to monetise their non-gaming ventures given their poor track record since 2001, when the former Portuguese colony first liberalized the industry, executives and analysts said.

Non-gaming revenues, which averaged around 5% of overall gaming revenues pre-COVID, must grow to more than 30% in the next decade, said Ben Lee, founder of Macau gaming consultancy IGamiX.

China Finally Reopens

The economy might not rebound as much as expected, but some industries such as restaurants and travel should see a big positive change.

Evergrande Can't Produce Financial Report On Time

Evergrande unit Hengda unable to publish financial results by Aug 31

Property developer China Evergrande Group's 3333.HK main unit said on Wednesday that it was unable to disclose its six-month financial report by Aug. 31 because significant changes in its operation had added extra auditing work.

Hengda Real Estate Group Co, the developer's flagship onshore unit, also promised to publish its 2021 annual report as soon as possible, it said in a filing to the Shenzhen Stock Exchange.

In August Hong Kong's audit regulator initiated an inquiry into the financial statements of China Evergrande's property services unit and its former auditor after questions were raised following an investigation into seized deposits worth $2 billion.

Another Low Volatility China Play

China Unicom (CHU).

Shanxi Govt Owned Bank Goes Public, Guess Who Buys First

Caixin: Jinshang Bank to Launch $435 Million Hong Kong IPO

Shanxi Qin New Energy Group Co., a coal miner in the Shanxi province, and state-owned investor Taiyuan Industrial Park Investment Holdings Co. each subscribed for $50 million of shares. Chen Xing Development Holdings Ltd., a Hong Kong-listed Shanxi property developer, subscribed for $22 million of shares.

Webb on Future of Hong Kong

Bloomberg: An Investor’s Vision for the Future of Hong Kong (Podcast)

There’s been a series of historic marches in Hong Kong, with millions of people taking to the streets to protest against an extradition bill that they think will give China more power over the city. On this episode of Odd Lots, we talk to David Webb, one of Hong Kong’s most unusual and well-known investors. Webb has amassed a fortune by investing in local stocks but he also advocates for change in Hong Kong’s volatile market, where big swings and lackluster corporate governance are often the norm. Here, he talks about how he sees the future of Asia’s biggest financial center in the wake of the protests. He also gives his thoughts on U.S.–China relations.

China Welcomes Stock Manipulators in Bid to Boost Liquidity, Australia Fraudulent Lending

Chinese ADRs were pummeled on Friday and one stock in particular, Bitauto (BITA) collapsed right to its major support level. It is a trifecta of trouble: China, Internet and autos.

An article at CNstock discusses how the 5G sector, hit by a "Black Swan," has led the market rebound. 饱受“黑天鹅”事件困扰的板块，缘何成了反弹领先者？ Everything looks like a bear market bounce to me.

On the mainland exchanges, "hot money" is returning to the market because Chinese regulators said they would intervene less in the markets. The dearth of trading has caused the shift in focus. According to one report, traders suspected of manipulation are no longer receiving warnings for their suspicious trading activity.

CNStock: 游资努力重返市场！操盘一周，他们有话要说……

"Before this, our group died in silence, no one spoke, and on the day the news was released, our group blew up. There was more discussion in one day than in the previous year." Mr. W said to the reporter.

In the past week, the hot money has struggled to return to the market, despite “demon stocks” made them feel pressure, their existence also provided valuable liquidity to the market.

On October 30, the official website of the China Securities Regulatory Commission issued a statement during the trading hours, indicating that it will optimize transaction supervision and enhance market liquidity.

This news generated a strong response within the hot money community. For this sudden and unexpected news, the long-lost group of hot money in the past week, first of all, will be suspicious, and then gradually dispelled doubts, more and more people try to test.

The hot money has always been adhering to the short and fast style. When the news was first seen, Mr. W entered the trading. In fact, Mr. W has been away for more than two years. In mid-October this year, he was told by the broker that his account had been removed from the blacklist.

“There were three transactions this week. I still received the supervision letter for the first time, but I did not receive window guidance or supervision letter the next two times. The trading environment is indeed picking up.” Mr. W’s feelings also led to other active funds around him.

A number of active investors focused on short-term trading said that through a week of operations, they found that the verbal instructions and warning letters received were indeed decreasing.

Alhambra: Why Chinese Authorities Are Freaking Out

The economic stats all keep pointing in this direction. China’s economy isn’t right now collapsing but that isn’t the problem. Again, what the numbers suggest is we’ve seen the best there is and it isn’t (ever) going to get any better. And it isn’t near enough growth.

There just isn’t sufficient economic momentum anywhere in the world to overcome eurodollar tightening. In fact, the two go hand in hand; lack of momentum leads to monetary caution, spurning further growth creating more monetary tightening. The result is growing desperation in China, as elsewhere, about where things might be going just on the other side of the horizon.

A credit-driven decline in Chinese economic activity followed by the rapid or large one-off depreciation of the yuan still looks likely to me. It may be that as in 2016, central bankers and politicians intervene, but there's no more than one save left because the U.S. markets are peaking. If there's a rebound in the U.S., it will unfold similar to the final melt-up phase of the dotcom bubble in 1999. It will take another leg down in the markets to change central bank policies though. The major indexes will officially enter bear market territory as the Nasdaq did in 1998 when it fell 30 percent.

Australia strikes me as a good candidate for China fallout. Recently, China's government told banks to lend to small businesses and not call in loans early. Australia's Treasurer just did the same. (H/T to Macrobusiness.) AFR: Josh Frydenberg tells banks to ease up on lending crackdown

"I would encourage the banks when it comes to lending, in particular for small business, make sure you get the balance right, keep the books open and don't lose sight of the broader public good," he said.

"We all know the royal commission has brought into focus the issues of responsible lending and examples of misconduct. While both issues are important, I do see them to some extent as separate, with different responses required."

The tightening of credit has taken its toll not just on investors but owner-occupiers with housing loans falling sharply in September, according to the latest housing finance figures from ABS.

Macrobusiness has a more detailed look at the topic, though it may go behind the paywall.

China remains in focus because of its size and because the markets haven't priced in a yuan devaluation. It will be a called a "Black Swan" by the same folks who thought 2008 was a surprise. Aside from a breakup/crisis in the euro, my top bear market recognition event is substantial yuan depreciation, but that doesn't mean it will make for the best short candidates in terms of total decline.

My read of the China charts: the downturn that started in June hasn't broken yet. Tactically, I'm not going to short if there are sustained rallies, but the risk/reward remains in favor of the bears heading into this week.

Haidilao Expansion Worries

Haidilao is a great restaurant that IPO'd in Hong Kong on Wednesday. The company is popular in China and rapidly expanding, and the latter is the main source of concern. Can it expand this quickly? Hotpot involves serving raw food tossed into boiling water. Recently, rival chain Xiabu Xiabu saw its stock plummet after a rat was found in one of its hotpots.

Inquirer: Chinese restaurant shut down after pregnant woman finds rat in hotpot soup

One man, surnamed Ma, said it was his pregnant wife who discovered the rodent in their meal, as reported by Kankan News via South China Morning Post last Sept. 10. They were apparently eating in a branch of the restaurant chain Xiabu Xiabu in Weifang, Shandong province last Sept. 6, and had only taken a few bites when Ma’s wife made the discovery.

Authorities have since suspended the restaurant following the incident, the report said. Meanwhile, Ma’s wife is set to undergo a hospital check-up, with Ma sharing that the restaurant staff offered them money for an abortion if they were concerned about the baby.

“If you are worried about the baby, then we’ll give you 20,000 yuan (nearly $3,000) to abort it,” Ma said in the report, recounting what the restaurant staff told him.

The restaurant also offered them compensation in the amount of 5,000 yuan (around $700), though Ma has shared that he is ready to negotiate the amount.

Xiabu Xiabu meanwhile released a statement last Sept. 8, saying they’ve always “placed great emphasis on food security.” They vowed that they would make the required changes to improve their service.

The Economic Observer has an in-depth article on Haidilao, below is the relevant section on expansion.
EO: 海底捞上市的底气与隐忧

Expansion worry

“The more stores are added, the greater the management span.” Zhu Danpeng believes that there are serious problems in the operation mode and profit model of the Chinese catering industry, that is, to pursue profit maximization through low-cost labor, rather than putting food safety first. From a regulatory perspective, the country's laws and regulations and penalties need to be improved.

Haidilao's risk factors listed in the prospectus are 31 pages long. It believes that the risks mainly exist in three aspects: food safety and quality consistency, restaurant store manager talent pool and supply chain management.

In terms of supply chain management, the founders of Haidilao have successively set up specialized companies in various links of the hot pot supply chain, such as Bohai Group, Bohai Group, Yuyun Oriental, Weihai Consulting, etc., responsible for the production of bottom materials and processing of food materials in Haidilao. , warehousing logistics, store construction and manpower consulting. In addition to the above four, the main related parties of Haidilao include Zhalutqi Haidilao. In the past three years, the purchase amount of Haidilao to the above five companies has increased year by year, respectively 1.879 billion yuan, 2.553 billion yuan, 4.904 billion yuan, accounting for 61.7%, 68.8% and 81.3% of the total purchase of sea fishing. Bohai Group also provides food processing and distribution services for other catering companies.

The division of the Haidilao headquarters and the restaurant manager is clear: the restaurant manager has a high degree of autonomy in the day-to-day operations of the restaurants it manages, and the headquarters is responsible for food safety, procurement, growth strategies and other aspects of the restaurant. In this case, whether there are enough managers in the store has a significant significance for the success of Haidilao's expansion. "At present, the reserve of Haidilao is about 100 people per month." Li Jianfeng told the Economic Observer Online.

In addition, the method of cultivating the manager of Haidilao adopts the “apprenticeship system” to increase the enthusiasm of the store manager to bring out new people through rewards. The store manager can not only enjoy the performance of the store, but also obtain a higher percentage of performance in the stores managed by his apprentices and apprentices.

"For Haidilao, the biggest risk lies in food safety." Zhu Danpeng told the Economic Observer Online.

In terms of food quality and safety, Haidilao currently invests more than 500 full-time staff directly responsible for food quality and safety. Each restaurant has one or two employees dedicated to food safety. According to the Haidilao official website, more than 300 employees of the Haidilao suppliers such as Bohai Group, Bohai Group and Zalute Banner are responsible for food safety and quality control.

When the Economic Observer Online asked “How Haidilao ensured that the rules and regulations were in place”, Haidilao said, “In terms of safety, Haidilao is committed to providing consumers with a comprehensive and strict quality control management system through the development and implementation of a comprehensive and strict quality control management system. Healthy, safer and more assured products, including detailed and standardized quality control measures, frequent and extensive inspections, clear accountability, upgraded restaurant design and technology, and large-scale investment by food safety personnel, as much as possible Make sure the food is safe."

But obviously, Haidilao can't guarantee 100% without any problems.

In the Haidilao official website management announcement page, basically every month there are behaviors that do not strictly abide by the rules and regulations. Last year, after the Haidilao Beijing Jinsong store was exposed, there was a mouse in the kitchen. At the Sun Palace store, the staff used the colander used by the customer to eat the hot pot to clean up the clogged garbage.

Every exposure will have a major impact on sea fishing. Especially after the listing, if there is a problem in food safety, the damage to Haidilao is obviously not a level compared with before, and the more stores, the greater the lethality.

In early September, a shop in Weifang, Shandong Province, was blown out of a hot pot soup to remove a dead mouse. After the incident, the stock price fell on both the 10th and 11th of September. More than 6%.

The existence of food safety issues is a common problem faced by catering companies. At the end of May 2018, the famous hot pot brand Xiaolongkan was exposed to the media by recycling the use of saliva oil and the unhealthy hygiene of the kitchen. Soon, another chain of restaurants - Yang Guofu Mala Tang was exposed to a store staff in Guangzhou to put their feet on the cutting board to cut vegetables.

From the sea bottom to the Xiaolongkan, then to Yang Guofu Mala Tang, squatting and feeding, many chain catering companies have been planted, food safety is a risk that the catering industry cannot avoid. How to ensure the quality and safety of food while expanding rapidly is the key to the continued rapid growth of Haidilao.

"Haidilao can have two ways to die: one is to manage problems. If it happens, the death process may last for months or even the last year; the second is food safety problems. Once it happens, Haidilao may close tomorrow. Life and death are at stake. We understand that although the road to good food safety is tortuous and difficult, it will not go away." Haidilao wrote on his official website.

Small and Midsize Developers Seek Lifeline in HK Equity Market

iFeng: 多家中小房企寻求香港上市 “各类融资渠道成本都在上升”

The developers of high-strength relying on funds have increasingly tightened their financing channels. Many small and medium-sized developers have begun to look to overseas capital markets and want to list their companies in Hong Kong for financing. On April 26, the Hong Kong Stock Exchange disclosed the Shanghai Dafa Group’s prospectus. As of February 28, the company had a total land bank area of ​​1.72 million square meters, including a total saleable floor area of ​​134,300 square meters. And the total building area available for rent is 68,400 square meters. Business operations include property development and sales, commercial property investment, and operations and property management services.

Dafa Real Estate stated that the revenue mainly comes from the sale of properties. The financial data from 2015 to 2017 showed that the company’s sales revenue was 603 million yuan, 575 million yuan and 4.32 billion yuan respectively. As of the end of 2017, the company's cash and cash equivalents were 377 million yuan. The prospectus mentioned that during the three-year period from 2015 to 2017, the company recorded negative net operating cash flow, and may not be able to obtain sufficient funds (irrespective of bank loans, trust financing, or other arrangements) for land acquisitions on commercially reasonable terms. And in future property development, or simply unable to obtain the necessary funds. Dafa Group stated that the company’s property development projects are generally financed through cash generated from operations, bank loans and trust financing. The company is expected to continue to adopt the above methods and seek other financing opportunities to fund the project.

However, Daihatsu Group also mentioned that the company cannot guarantee that it will have sufficient funds, nor can it guarantee that it can obtain additional financing on reasonable commercial terms, or even fail to obtain additional financing. At present, the company's net operating cash flow is negative, mainly due to the time-consuming property development and the need for large amounts of capital, as well as the company's land acquisition and business expansion. Companies may need to significantly increase external borrowing or obtain other external financing. Dafa Real Estate CEO Liao Lujiang once said that Dafa Real Estate planned to hit 100 billion in 2018, and put forward a goal of achieving 300 billion yuan in five years, as well as project follow-up and profit sharing mechanisms.

In addition, another real estate company, Xinli Real Estate, is also planning to go public in Hong Kong. The data shows that the company's sales in 2017 exceeded 40 billion yuan, and the current value of land reserve was 231.4 billion yuan. On May 31, Midea, a real estate platform owned by Midea Group, submitted a prospectus on HKEx. According to the relevant information disclosed in the prospectus, Midea's main businesses include property development and sales, property management services, and investment in commercial real estate. The listing in Hong Kong is to further expand the scale of the industry, and the company will use the funds for general operations and smart home solutions. According to the financial data of Midea Real Estate, the company’s authorized share capital increased to HK$2 billion and the shares were divided into 2 billion shares at HK$1 each. From 2015 to 2017, U.S. real estate revenue was 8.313 billion yuan, 11.992 billion yuan, and 17.717 billion yuan respectively. According to the company's disclosed balance sheet data, the company's total assets in 2017 were 112.798 billion yuan, the total liabilities were 18.88 billion yuan, and the asset-liability ratio was about 89%. As of March 31, Midea Property has 39 projects in the Yangtze River Delta with a land reserve of 8.4 million square meters. By the end of 2018, it is expected that most of the pre-sale residential development projects will be equipped with smart home solutions. Midea Real Estate stated that the company may enter the assembly industry and the first prefabricated construction plant will be put into operation in Xuzhou by June 2020. Nowadays, under the financial background of deregulation by regulators, the regulation of domestic property market and the tightening of financing have become the consensus of the capital market. The financing costs of housing companies through the issuance of bonds are also rising. People in the financial industry (www.thepaper.cn) said that the future financing of housing companies will become increasingly difficult. This year's financing costs have risen compared to 2017, but even so, many housing companies are still Will rush to. "Now that money is getting harder and harder to get, so housing companies also rely on themselves, either to issue bonds, or to borrow overseas. Already listed companies can also use equity distribution, but the cost of these financing channels is also rising." "Although this is the case, as long as it is still within the scope of the developer's ability, it is possible to get the money." Wind data shows that since May, a total of 16 real estate bonds have been issued, with coupon rates More than 7% have 9. At the same time, real estate companies also have stricter supervision over the issue of bonds in the bond market. Since the end of May, Hopson Development (00754.HK), R&F Properties (02777.HK) and Country Garden (2007.HK)

China Long-Term Chart

In light of China Topping earlier today, a long-term look at iShares China (FXI). The trendline is around $48.70, 6.8 percent above today's close.

Here's the ChiNext analog.

Huishan Dairy Collapses, Liaoning Again

Caixin: China Huishan Dairy Shares Plunge 91% Before Trading Halted

Shares of China Huishan Dairy Holdings Co. Ltd.’s plunged 91.4% Friday before the company halted trading, in the largest drop ever recorded on the Hong Kong stock exchange.

The dramatic fall came after financial regulators in northeast Liaoning province held a meeting on Thursday afternoon with 23 creditor banks to discuss Huishan’s debts, people with knowledge of the matter told Caixin. The creditor banks include Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and Ping An Bank.

China Huishan Dairy is the country’s largest cattle farms operator.. It came under the media spotlight last December when its stock was shaken after being attacked by short seller Muddy Waters, which published reports alleging Huishan’s fraudulent and overstated revenue. Huishan denied the allegations.

There may be knock on effects:

In June 2015, Champ Harvest Ltd., the controlling shareholder of Huishan Dairy, pledged its shares in the dairy company as collateral to obtain loans from Ping An Bank. To date, Champ Harvest’s outstanding loans with Ping An Bank total 2.1 billion yuan, and 3.434 billion shares have been pledged.

HK-SZ Connect Starts Dec 5

SCMP: China gives the nod for Shenzhen-Hong Kong Stock Connect to commence on December 5

The programme allows overseas investors to trade in 881 stocks on the Shenzhen Stock Exchange, while giving mainland Chinese brokers access to execute transactions in 417 stocks in Hong Kong, according to a joint announcement by the China Securities Regulatory Commission and Hong Kong’s Securities & Futures Commission.

China Slowly Strangles Growth

Reuters: Road to stagnation? China Inc gets a break from lenders

Profits at roughly a quarter of Chinese companies in a Reuters analysis were too low in the first half of this year to cover their debt servicing obligations, as earnings languish and loan burdens increase.

Corporate China sits on $18 trillion in debt, equivalent to about 169 percent of China's GDP, but few firms reported feeling the heat.

Instead, lenders are heeding Beijing's call to support the real economy and so are rolling over company debt or granting repayment waivers, sometimes for years, specialist lawyers and investors said.

This is evidence that China may be in for a long period of Japan-like stagnation rather than a single event triggering a crisis - what some economists call a "Lehman moment" after the collapse of Lehman Brothers in 2008, which touched off the global financial crisis.

"They are kicking the can down the road for stability in the short term," said Roland Mieth, Singapore-based emerging markets portfolio manager for U.S. fund manager PIMCO. "China can maintain status quo for many years to come, like Japan did with their leverage, without triggering a financial crisis."

A crisis doesn't go away, it is pushed out into the future because eventually firms have to adjust. Growth is no longer fast enough to shrink the zombies out of existence. In the meantime, GDP growth and potential GDP are downshifted every year. If you're unlucky like Japan, you end up 20 years later with exactly the same nominal GDP. If you get lucky, the economy is larger and you can claim success because the future where economic growth was 2 or 3 times larger doesn't exist. If kicking the can was a good solution, equities wouldn't be trading at the same level as 10 years ago.

Another Sign of the Weak Yuan: Listed Company Financials

Bloomberg: China CFOs Are Swapping Dollars for the Yuan in Statements

While Capital Link International Holdings Ltd. says the growing international importance of the yuan means it no longer makes sense for the nation’s companies to report in a foreign currency, JPMorgan Chase & Co. says the weaker Chinese currency is triggering the move. The yuan will decline a further 1.3 percent to a six-year low by the end of the December, according to analysts’ median forecast in a Bloomberg survey.

"It’s flattering when the yuan is appreciating but it makes the numbers poor when the yuan is falling," said Adrian Mowat, the chief Asian and emerging-market equity strategist at JPMorgan. Companies “recognize after recent yuan weakness that it makes the numbers less favorable in Hong Kong dollars."

It makes sense for this to happen eventually and it makes for a clearer picture of Mainland business, but the impetus for the change is the weakening yuan. This is another aspect to the dedollarization process, another reason why the dollar system dies from deflation, not inflation.

Shenzhen and Hong Kong Test Link Up

FINTS: Shenzhen – Hong Kong Stock Connect testing settlement interface systems

The Shenzhen and Hong Kong stock link, Shenzhen – Hong Kong Stock Connect (SZHKC), started “end-to-end” tests of its settlement interface system on Monday.

Sources said that the SZHKC would have higher quotas than the current Shanghai – Hong Kong Stock Connect (SHHKC). According to another source, SHHKC’s quota is expected to be raised as the opening of SZHKC is formally announced.

For now, SHHKC’s northbound aggregate and daily quotas are respectively 300 billion yuan (166.1-billion-yuan left as of the pressing time) and 13 billion yuan, while those for southbound are 250 billion yuan (64-billion-yuan left as of the pressing time) and 10.5 billion yuan.

The market widely expects that the start of the SZHKC would be announced on July 1.

Battle for Vanke Heats Up

Reuters: Vanke says business under pressure after Baoneng move to oust board

A plan by China Vanke's largest shareholder bloc to oust the property developer's board has led banks to reconsider how they rate the company's credit, Vanke President Yu Liang told a shareholders' meeting on Monday.

Financial conglomerate Baoneng, which built up a big stake in Vanke last year, is now seeking to oust founder and chairman, Wang Shi and the rest of the board, and has called for an extraordinary general meeting, Vanke said in a statement late on Sunday.

WSJ: Heat Rises on China Vanke

Earlier this month, Vanke said it would issue new shares in an asset-swap deal that would make subway operator Shenzhen Metro Group its largest shareholder. Shenzhen is a metropolis in southern China.

The deal, which will be dilutive, will give Shenzhen Metro a 20.65% stake of the enlarged share capital and will displace Baoneng as Vanke’s largest shareholder. In exchange for the issued shares, Vanke would get land atop metro stations.

Baoneng, according to the exchange filing, is seeking to undermine Vanke’s strategy, which is widely seen as a poison pill. Companies threatened with unwelcome takeover offers often use tactics to make themselves unattractive to bidders.

Baoneng became Vanke’s top shareholder after buying a 24.29% stake through its subsidiaries, bypassing the previous incumbent, China Resources Group. China Resources also opposes the Shenzhen Metro asset-swap deal.

FT: China Vanke boardroom feud boils over

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Both the insult and the prospect of an unprecedented battle for control over one of China’s best-known companies captivated the country’s media. Adding to the drama was Mr Wang’s reputation as one of the country’s most admired and colourful entrepreneurs.

Mr Wang, also a mountaineer and adventurer, built Vanke into a successful developer but never sought to consolidate control over the company, trusting its largest shareholders to not interfere in management.
Trading in Vanke’s Shenzhen-listed shares has been suspended since December 18 pending a restructuring. Both Vanke and Baoneng are based in Shenzhen, the special economic zone bordering Hong Kong.

Shares are still trading in Hong Kong and have formed a head-and-shoulders pattern. If it completes, the downside target is HK$9 and change, a 42 percent decline.

Sign of the Bear in Low Volume, Delistings

Bull markets peak with a frenzy, and while a bear market will see peak volume days amid a crash, they end with a disinterested public and companies delisting.

SCMP: Hard landing: China brokerages look to cut bonuses, staff as markets snooze

Bye-bye fat red envelops. China’s securities brokerage companies are bracing for their very own hard landing as turnover on the stock markets plumbs depths not seen in more than one a half years.
“We now have a headcount freeze. The headquarters are cutting down on expenses, including overseas trips, to control costs. Things are becoming tight and there is no sign of any recovery,” said a senior executive at a China-based brokerage who did not want to be identified.
Many brokerages are delaying bonuses, which would run to several times the monthly pay in the go-go years.

SCMP: Peak Sport latest to consider leaving Hong Kong stock exchange amid low trading volumes

“The trading volume of Hong Kong stocks has been very low in the past month,” said Wong Chi-man, head of research at China Galaxy International Securities. “Many mid- and small-cap stocks only have some hundreds of thousands transactions a day. For them, Hong Kong has already lost its function as a financing platform.”

Peak’s price to earnings ratio (P/E) was only nine times before it announced the buyout plan.

That compares with an average 37 times for firms trading on the Shenzhen Stock Exchange, which is dominated by small- and medium-sized companies.

There are a rising number of companies feeling dissatisfied with their Hong Kong shares’ weak trade.

Billionaire Wang Jianlin is preparing to take his Hong Kong-listed Dalian Wanda Commercial Properties private as he believes it has been undervalued on the city’s market.

Brazil’s Vale S.A., the world’s biggest iron ore producer, is another company leaving Hong Kong. On Wednesday it said the Hong Kong stock exchange had approved the withdrawal of its HDRs (Hong Kong depositary receipts) after they had been listed for five years.

Shunfeng Loses Contact With Suntech President Tang Jun

iFeng: 知情人士称无锡尚德总裁唐骏失联

"First Financial Daily" reporters today received the official broke the news that Hong Kong listed company --- downwind International (01165.HK) control Suntech Power Co., Ltd. (hereinafter referred to as "Suntech") president Jun Tang has lost contact.

The source said Tang originally planned to participate in a mid-month industry internal meeting has been canceled. On the current state of Tang Jun, Suntech aspects of the person's reply was "his business trip." "First Financial Daily" reporters continuous call today Suntech insiders phone number for the existing situation, said Tang Jun are "unclear." Tang Jun and reporters get a phone number, but also in the "peer SMS call user" status.

From Suntech's website:

Mr. Tang Jun
CEO of Shunfeng Photovoltaic Technology Co., Ltd and president of Wuxi Suntech Power Co., Ltd

As Double Master in Condensed Matter Physics and Business Administration, Mr. Tang Jun has been attached to the photovoltaic industry for 22 years. He acted as the Vice-President in Renesola, before as President in Zhenjiang/Yangzhou Rietech New Energy Science & Technology Co., Ltd. He assisted the Ministry of Science and Technology in the management and planning of the scientific research projects in solar energy, hosted the key science and technology projects of the 9th Five-Year Plan and the 10th Five-Year plan of the nation, established the first production line of polycrystalline silicon wafers in China, co-hosted the national standard setting of the“solar cell polycrystalline silicon wafer” and “solar cell multi-crystalline silicon ingot”in the international field.

During the work in Zhenjiang Rietech, with the help of his many-year experience in operation and management, he made the quality and the technical indexes of Rietech silicon wafer lead in the industry and established the Rietech self-owned brand, assisting the enterprise to turn losses into gains and to occupy the commanding height in the field of polycrystalline silicon wafer.
As Member of China Photovoltaic Special Committee, Mr. Tang Jun devotes to the overall progress of China photovoltaic industry and won the only special award of China Photovoltaic Conference in 2015.

Liu Shiyu: HK-Shenzhen Connect Definitely Coming in 2016

iFeng: 刘士余：今年深港通肯定会开通

After the press conference, reporters asked containment Liu Shiyu Shenzhen and Hong Kong will pass through this year, Liu Shiyu through affirmative response.

Chinese Buying HK Stocks to Avoid Yuan Depreciation

Bloomberg: In Rush to Exit Yuan, China Traders Buy Sinking Hong Kong Stocks

Chinese investors are so desperate to shift their money out of yuan-denominated assets that they’re piling into some of the world’s worst-performing stocks.

Mainland buyers purchased Hong Kong shares through the Shanghai stock link for a 10th week last week, even as the Hang Seng Index tumbled 6.7 percent.

The premium in A-shares argues for owning H-shares over A-shares in most cases. As for depreciation, domestic shares might be a better choice if there's a flight out of cash in China. There are also domestic options such as this one: 国泰纳斯达克100(QDII-ETF) (513100), the Nasdaq-100 ETF. Of course Nasdaq has to rise, but that's a U.S. dollar asset that has no direct yuan currency risk.

I mentioned it back on September 7 as an option, it closed at 1.46 that that day. Today it closed at 1.512, for a gain of 3.5%. ChiNext is up about 10% since then, minus about 3% depreciation in CNY. Key point for buying Hong Kong shares though:

Because it’s a closed-loop design -- Chinese investors get the proceeds in yuan when they sell Hong Kong shares -- purchases don’t count toward an annual limit on moving money offshore, Citigroup said.

This make senses if the company in question has foreign assets and earnings, otherwise not so much.