The US Federal Reserve announced last week that it would raise interest rates by 0.75%, the largest increase since 1994. Chairman Powell said last month that “not actively considering a 0.75% increase”, but in the face of a 40-year-old inflation, the only way to do it is to give in; however, market players such as hedge fund tycoon Ackerman, new debt king Gundlach, etc. Suspected that the Reserve Board is not determined enough to curb inflation, it is obvious that the government is afraid of economic recession. Although the stock and bond market entered relief-rally mode immediately after the interest rate negotiation, the stamina did not continue. Last Friday, the US stock market “four witch days” (index futures, options; stock futures, options four-phase settlement), the Dow fell another 38 points , failed to reach the 30,000 level.
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Central banks around the world have raised interest rates. After the United States last week, the United Kingdom, Switzerland, Hungary and Argentina all announced interest rate hikes. The epidemic and war disrupted the supply chain, inflation has soared, the interest rate has risen, and the stock, bond, and foreign exchange markets have been frightened. The market has been turbulent recently, and there were a few odd orders last week. First, it is reported on the mainland that Hong Kong financial institutions have lost 10 billion U.S. dollars by speculating in bonds. First, it was said that it was a foreign investment bank, then it was a large Chinese bank, and then it was said that a Chinese bank was a securities company, and it lost 10 billion yuan. European-funded banks and Chinese-funded banks have voiced their denials, including UBS, BOC Hong Kong (2388), and ICBC International.
Ant restarts listing and repeats food fraud
Second, Ant Group, in which Alibaba (9988) holds 33% of the shares, restarted the IPO after its listing in Shanghai and Hong Kong in November 2020, and has repeatedly cheated. Last Friday, “Reuters” quoted people familiar with the matter as saying that the People’s Bank of China has accepted Ant’s application to establish a financial holding company, which is regarded as a key step in Ant’s rectification and re-IPO, but later “Cain Associated Press” quoted people close to the central bank. Said that the central bank has not accepted. A week earlier, “Bloomberg” also quoted sources saying that the China Securities Regulatory Commission had set up a team to evaluate Ant’s share sale plan, but then the China Securities Regulatory Commission and Ant successively denied restarting the IPO work.
Affected by the news, Alibaba’s U.S. stocks rose by more than 10% before the market opened, and closed up only 0.8%. Converted to Hong Kong stocks, it fell 4% compared with Hong Kong stocks. Is Ant’s listing really a scam? Recently, China has sent a regulatory easing signal to the market, and the most convincing move is to release the ants that kicked off the regulatory storm. Ant’s restart of IPO can also be traced. The group joined Hong Kong Stock Exchange (388) Chairman Shi Meilun as an independent director at the beginning of the month. Shi Meilun has a deep relationship with the China Securities Regulatory Commission. Former Premier Zhu Rongji served as the vice chairman of the China Securities Regulatory Commission when he was in power, and he is still serving as the China Securities Regulatory Commission. Vice Chairman of the International Advisory Committee of the Securities Regulatory Commission. However, even if Ant goes public, its valuation is expected to shrink by two-thirds from two years ago.
Hong Kong may be sanctioned by Russian capitalist suspicions
Third, last Friday, Russia’s St. Petersburg Stock Exchange (SPB Exchange) announced that it will allow brokers to trade stocks listed on the Hong Kong Stock Exchange this week. The first 12 stocks include ATMXJ, Sunny (2382), Country Garden (2007), Sands (1928), Zhongsheng Pharmaceutical (1177), WH Group (288), Changhe (001) and Changshi (1113). The incident has caused the market to worry about whether the Hong Kong Stock Exchange and Hong Kong will be subject to international sanctions, because after the war between Russia and Ukraine, Russia was subject to international sanctions, and opening up Hong Kong stocks is like sending Russian capital to a city pegged to the US dollar.
Interestingly, the Hong Kong Stock Exchange did not cooperate with the other party in the response, and believed that it was only part of the global issuer promotion plan launched by the other party. It is verified that the largest stock exchange in Russia is the Moscow Exchange, and the St. Petersburg Exchange has claimed to be able to trade S&P 500 stocks in 2014. In other words, the exchange is only an over-the-counter trading platform, let alone cooperating with other exchanges. Anyway, the Russian water is poised to flow in, and the Hong Kong Stock Exchange rose 2% last Friday; however, the author has no intention of chasing the goods, and always feels that the event will pose a risk to the Hong Kong Stock Exchange in the long run.
Market news pops up and pops in. It’s no surprise that the current market conditions are turbulent, and we try our best to manage risks.
Previously worked as a financial reporter and editor, and wrote a financial column in a Hong Kong newspaper for more than ten years
This column is published every Monday