Business
Jinmao Property Services shares slump in Hong Kong trading debut
- 2022-03-10
- Business
- The Young Reporter
- By: REN Ziyi DavidEdited by: Peggy Ye Pei Shin
- 2022-03-10
Shares of Jinmao Property Services Co.(00816), a Chinese property management company, plunged as much as 36% to HK$5.21 on its first trading day, as China's real estate markets remained under pressure. The company’s shares closed at HK$5.8 today, dropping 29% from its initial public price of HK$ 8.14. Jinmao Service was offering 101 million shares at a price ranging from HK$7.52 to HK$ 8.14, with a goal to raise up to HK$ 759.6 million. The share price was down as much as 6.1% to HK$7.6 in Gray Market trading on Wednesday, data compiled by Bloomberg Terminal shows. "The property services industry follows the trend of the housing market," said Steven Wong, the Portfolio Manager of Harris Fraser, "property services could be overvalued if property sales are weak." China's property market faces a great setback under Beijing's regulation as real estate companies have difficulties in paying debt, such as the default of property tycoon China Evergrande. Jinmao’s business scale is relatively small compared to other leading companies. Its managed area exceeds 23 million square metres in mainland China, including 20 provinces and 35 cities by September 2021, while Country Garden Services (06098) provides ten times more services, covering 644 million square metres by June 2021. Jinmao Property Services’ net profit increased from RMB 23 million yuan in 2019 to RMB 77 million yuan in 2020, while the net profit ratio was 8.2%, below that of Country Garden Services (06098), which is 17.2%. Meanwhile, the company's average management fee was RMB5.4 per square metres per month, higher than the average listing peer RMB3.8 yuan, according to a research report finished in 2022. Country Garden Services slipped 4.3% to HK$38.6 per share today. China Jinmao Holdings Group(00817), the parent company of Jinmao Property Services, which relies on real estate and hotel operations, recorded …
Café de Coral shares slightly rebound from post-2008 financial crisis record low as the group stopping dine-in services due to pandemic
- 2022-03-01
- Business
- The Young Reporter
- By: YANG ZhenfeiEdited by: WANG Jingyan 王婧言
- 2022-03-01
The share price of Café de Coral(00341), a Hong Kong fast-food chain, rebounded 2.17% compared to HK$ 11.98 yesterday as the company announced to stop dine-in services in most outlets. However, its shares still decreased nearly six percent in the past five trading days. Café de Coral and its congee restaurant Super Super Congee and Noodles suspended dine-in services and focused on takeaway from March 1, announced the Café de Coral Group on Feb 27. The Group would also adjust the business hours and modes of some casual dining branches. Leung Ke-ting, CEO of Café de Coral Group (Hong Kong), has publicly stated that the suspension on dine-in can reduce crowds in the store, protect the health of customers and employees, and reduce the pressure on employees to go to work. The group’s share fell as much as to HK$ 11.86 today, the lowest since the financial crisis in 2008. Restaurants in Hong Kong struggled to survive as the fifth wave of epidemic hit the city. It is estimated that there may be 5,000 restaurants that suspend business if the regulations are further tightened, said the Hong Kong Federation of Restaurant and Related Trades, reported by local media. LH Group Limited (01978) has suspended the operation of all its restaurants including Gyu-Kaku, Gyu-Kaku Jinan-Bou, On-Yasai, Mou Mou Club, etc. since yesterday. Its shares continued to drop today to HK$0.85, 1.16% lower than the previous close, after it plunged more than 11% to HK$0.82 yesterday morning. Tao Heung Holdings Limited (00573), a chain of Chinese restaurants, announced yesterday that it will be temporarily closed from today until the epidemic eases on Facebook. Its share price decreased 1.19% to a one-year low of HK$ 0.83 today. The government has expanded tightening social distancing rules to at least April 20. It ordered hair …
Budget 2022: Hong Kong budget aims to tighten financial and economic ties with mainland China
- 2022-02-24
- Society
- The Young Reporter
- By: Ziyu Bruce Zhao、Kate ZhangEdited by: Summer Li
- 2022-02-24
Hong Kong’s Financial Secretary Paul Chan Mo-po addressed the HK$170 billion budget for the city in today's speech, with considerable mentions on integrating Hong Kong’s economy into the mainland China market and national-level development. Strengthening Hong Kong as a financial centre to integrate with mainland development Hong Kong will enhance its status as an international financial centre in line with the 14th Five‑Year Plan by strengthening its status as an offshore renminbi hub and asset management centre, the Financial Secretary said in his budget speech today. “In the future, we will explore ways to further expand the channels for the two-way flow of cross- boundary RMB funds, as well as continue to promote the development of offshore RMB products, including introducing more diversified RMB wealth management products and bonds,” Financial Secretary, Paul Chan said . The city launched the Southbound Trading of Bond Connect and the Cross‑boundary Wealth Management Connect Scheme in the Greater Bay Area (GBA) in September last year, which allows individual investors in the mainland to invest in offshore bonds through the Hong Kong bond market according to the Hong Kong Monetary Authority. Chan said the government is exploring more enhancement measures for these investment initiatives, including expanding quotas and scope of eligible investment products, inviting more companies to participate, and improving distribution. The Hong Kong Mortgage Corporation Limited will study and implement a pilot plan for infrastructure financing securitization within the year. According to the plan, the corporation is expected to issue infrastructure financing securitization products worth about HK$ 35.1 trillion (US$450 million) in the institutional market next year. “On the one hand, the local infrastructure financing market will be more vigorous and diversified, and at the same time, market capital will be introduced into high-quality infrastructure projects,” Chan said. Chan also proposed to set up …
Five highlights from Hong Kong Budget Address 2022-23
- 2022-02-23
- Society
- The Young Reporter
- By: Nola YipEdited by: KOO Chi Tung 顧知桐
- 2022-02-23
In response to the fifth wave of outbreak in Hong Kong, Financial Secretary Paul Chan Mo-po unveiled today’s 2022-23 Budget online, a first for the city. Here are a few highlights of his speech: 1. Important figures The government’s total revenue is estimated to be HK$715.9 billion, a 3.3% increase compared with the previous year, while expenditures will increase 15.5% to HK$807.3 billion, Chan said. Hong Kong will have an HK$18.9 billion surplus for 2021-22, Chan said, rather than the expected HK$101.6 billion deficit. Fiscal reserves are expected to be HK$946.7 billion by the end of March. 2. Tax The rates of profits tax and salaries tax will remain unchanged in view of the current economic situation, Chan said. The government will also continue to waive up to HK$10,000 of salaries tax and tax under personal assessment. “With the outbreak of the fifth wave of the epidemic, businesses and individuals are generally under considerable financial pressure,” he said. 3. Progressive rating system A progressive rating system for domestic properties will be introduced to reflect the "affordable users pay" principle. For properties with a rateable value of HK$550,000 or less, rates will remain uncharged at the present level of 5% Property owners will pay 8% for a rateable value up to HK$800,00 and 12% over that. Chan said this will affect about 42,000 local properties, accounting for around 2% of private real estate, but will bring an increase of about $760 million in annual government revenue. 4. Anti-virus measure Chan added about HK$22 billion to the Food and Health Bureau to strengthen Covid-19 testing work, produce rapid antigen test kits and provide additional support for the Hospital Authority. 5. Green city The government will inject HK$200 million into the Green Tech Fund to build a liveable and green city and HK$1.5 …
Cross-border drivers stuck in quarantine, driving up fresh food prices
- 2022-02-15
- People
- The Young Reporter
- By: Tracy LeungEdited by: Jayde Cheung
- 2022-02-15
Fresh food prices in Hong Kong soared due to the increasing number of cross-border truckers undergoing compulsory 3-week quarantine, disrupting the fresh food supply chain. As of yesterday, 35 cross-border drivers have either tested positive or preliminary positive for Covid-19 at Shenzhen Bay Port, according to Shenzhen’s checkpoint office, scaling down the human power for transporting fresh food from mainland to Hong Kong. Around 300 to 400 drivers who were considered as close contacts are isolated, said Cheung Yuk-fai, representative from the Hong Kong-Guangdong Transportation Drivers and Employees Association in a RTHK programme yesterday. The cross-border truck drivers are responsible for transporting fresh produce from the mainland to Hong Kong. “Less than 50 workers remain working,” Cheung added. Ada Chan, the owner of a stall at On Tai Market in Kwun Tong, said the vegetable price doubled or tripled from the previous days in order to make a balance. “The transportation fee was raised from HK$10 to HK$80. Of course I have to raise the vegetable price,” said Chan. Hong Kong receives 92 per cent of vegetables, 94 per cent of fresh pork and 97 per cent of live freshwater fish from the mainland, according to the Food and Health Bureau. “I would prefer buying more cured products and frozen food since I am afraid the fresh food will be insufficient one day. The vegetable price is already expensive for me now,” said Leung Yuk-yee, a customer in the supermarket of On Tai Estate at Kwun Tong. Chinese green cabbage was sold for HK$6.60 per kilogram at the beginning of the month. It escalated to HK$21.70 as of Feb. 12, according to the Vegetable Marketing Organisation. “The government could give immediate subsidies to help poorer families, it may be hard for some of them to afford the food price,” said …
Hong Kong stocks slip on Wuxi Biologics’ record 32 percent slump
- 2022-02-08
- Business
- The Young Reporter
- By: Serena KongEdited by: Kylie Wong
- 2022-02-08
Hong Kong stocks slid as the US Department of Commerce added two subsidiaries of Wuxi Biologics’ to the red-flag list, with other 32 Chinese companies. Today’s main turnover was HK$129.5 billion. The Hang Seng Index closed at 24,329.49, down 1.02% following weakness from technology stocks. The city’s Tech index dropped 1.67%, closing at 5,436.92. Alibaba and Meituan fell 3.30% and 2.13% respectively. The stock price of Alibaba Health Information Technology tumbled 7.52%. Before its suspension started from 10:51 am, Wuxi Biologics plunged 22.77% to HK$ 62.3 after its inclusion to the “Unverifyed list” of US government, a list of business wordwide subjected to stricter export control as US officials cannot do routine check. The company’s stock sank as much as 32% in Hong Kong before the halt, dragging down the city’s benchmark and health-care stocks. WuXi Biologics’ associates, WuXi AppTec slumped 11.36% while JW (Cayman) Therapeutics fell 4.01%. Auto stocks also shrank. Great Wall was down 3.55% while BYD and Geely shrank 2.49% and 2.2% respectively. The state’s decision affected mainland stocks. Crypto stocks fell while semiconductor stocks followed. Insurance stocks demonstrated movements in opposite directions. The Shanghai Composite Index was up 0.67%, closing at 3,452.63, while the SZSE Composite Index inched down 0.24% to 2,280.51. The CSI Health Care Index, which tracks the performance of pharmaceutical companies listed in Shanghai and Shenzhen, decreased 1.32% to a 22-month low.
Hong Kong stocks fall three trading days in a row
- 2022-01-18
- Business
- The Young Reporter
- By: Kylie WongEdited by: Serena Kong
- 2022-01-18
Hong Kong stocks continued to drop as technology stocks shrank and the market was concerned about upcoming tighter monetary policy in the U.S., in light of inflation. The Heng Seng Index closed at 24112.78, showing a 0.43% decrease. Though the market grew 0.69% to today’s peak, 24385.05, from its previous close in the morning trading session, the growth was erased by the drop at noon. The lowest of the day was 24009.71. The market was dragged down by losses in the technology sector. Tencent recorded a decreased 2.75% reduction to HK$HKD 452.8 from yesterday’s HK$HKD 465.6. This was followed by Meituan and Alibaba, declining 0.375% to HK$HKD 215.8 and 1.63%to HK$126.4 respectively. Several financial media reported that Morgan Stanley cut the target price of Tencent from HK$650 to HK$600 as the broker predicted that Tencent’s revenue will report a slower growth of 6% for the last quarter in 2021. This is due to delays in revenue recognition of new games. Regulatory policies regarding games and advertisements also came into play. Country garden from the property industry is the best performing blue chip of the day. It displayed a 4.94% growth, reaching HK$ 6.16. The company announced on Monday that it has repurchased US$ 10 million senior note (HK$ 389 million) from the market. HSCE fell 0.18%. The SSE Composite Index and CSI 300 Index inched up 0.80% and 0.97% respectively.
Greater transparency needed as Hong Kong aims to transform into a green finance hub
- 2021-12-09
- Business
- The Young Reporter
- By: WANG Jingyan 王婧言Edited by: Vikki Cai Chuchu
- 2021-12-09
“Greenwashing” is a new buzzword featured at the COP26 climate summit in Glasgow. It’s part of the slogan of teeanger climate activist, Greta Thunberg. Greenwashing refers to a false impression or providing misleading information about how environmentally friendly a business of a product might be. Hong Kong has been trying to reposition itself as an international green financial hub since 2018. But the process finally stepped out this year as the government and industries seek to address disclosure issues in the green and sustainable investment market as a way to stamp out “greenwashing”. Stephen Phillips, director-general of investment promotion in InvestHK, a department of the government responsible for foreign investment in Hong Kong, told The Young Reporter that the city “has an important role to play as a green finance centre”. “A number of listed companies also, very strongly committed to both raising green capital, but also being compliant around bringing standards,” he said, “ and Hong Kong obviously serves not only Hong Kong and the rest of China, but also a place in which companies raise money from across the whole of Asia.” A report conducted by Standard Chartered Bank in 2020 found that among 1085 respondents from Hong Kong, Singapore, the United Arab Emirate and the United Kingdom, 59% of them who put money in sustainable investment said they would consider investing 5% to 10% in sustainable investing, and 75% said they would consider increasing their investment to 25% or more due to the pandemic. However, Alvin Li, Group Financial Consultant of TAL Group, said many investors may take a wait-and-see attitude towards green investment mainly because it is still under development. “The green bond market is still relatively new, still in the embryonic stage, and the secondary market is not fully developed. Investors have doubts …
Shares in Hong Kong Technology Venture hit new low despite launch of online shopping site
- 2021-12-02
- Business
- The Young Reporter
- By: KOO Chi Tung 顧知桐Edited by: Sara Cheng
- 2021-12-02
Hong Kong Technology Venture (1137), also known as HKTV, rumbled to a one-year low on Wednesday. It hit HK$8.680 per share, followed by a slight rebound to close at HK$8.780, down 2.02%. That’s despite the launch of the company’s new online shopping platform EESE the same day. “Regardless of whether the platform is good or not, it will not be so easy to have an impact on the stock,” said stock commentator Ivan Li. “Unless its business achieves explosive success.” The drop followed a warning by HKTV on Monday that its unaudited profit for the first three quarters in 2021 slumped by about 78.5% compared to last years’ HK$186.3 million. Its adjusted earnings before interest, taxes, depreciation, and amortization dropped by 57% from HK$281.1 million. The company said the fall was due to a lack of government subsidies this year. The company also gave away approximately HK$84.4 million in coupons to customers in its “$350 for $500 eGift Voucher Program” to sustain the shopping momentum. HKTV’S e-commerce website EESE is developed by Shoalter Technology Limited, a subsidiary of HKTV, in cooperation with fashion giant I.T. It offers a wide range of products including clothing and furniture from over 300 stores, such as I.T-owned brands AAPE, double-park and IZZUE, as well as brand partners SKECHERS, PUMA and Logitech. “We are a dynamic platform that values synergies between brands,” the company said on its website. Hidee Chow, a YouTuber who posts videos of her unboxing purchases from local and overseas online shopping sites, said she would wait for reviews first before buying on EESE. Shadow Hui, a communication manager in her forties, buys groceries, clothes and electrical appliances online at least twice a week. “The layout of its website is simple and clear,” she said. “I will consider buying on the platform …
Hong Kong Park blooms with over 600 plants from the rose family
- 2021-12-02
- Health & Environment
- The Young Reporter
- By: KOO Chi Tung 顧知桐Edited by: Sara Cheng
- 2021-12-02
More than 600 flowering plants and 50 species from the Rosaceae, or rose, family are in bloom at the Forsgate Conservatory in Hong Kong Park, including the rugosa rose, China rose, loquat, peach and Hong Kong hawthorn. The exhibition hosted 600 visitors on its first day yesterday, a spokesman for the Leisure and Development Department told The Young Reporter in an email reply. It will be open to the public for free until Jan.9, 2022.