Notes on Hong Kong Exchange
Related to ATEC’s note on Didi being penalized by the Chinese government on 6th July, it is natural to think that most if not all of the US-listed Chinese companies will now shudder to think if they might be in the cross-hairs of Beijing next.
Surely, the (un)intended message from the powers-that-be is that any further new listings in the US are frowned upon. Even existing listed Chinese names will be scrambling to consider a return back home.
ATEC heard chatter that Didi eventually chose to list in the US because of the approval delays by Hong Kong Exchange. That might have the case, but considering how there are already earlier successful examples of companies such as Baidu, Alibaba and so on ‘coming home’ and listing in Hong Kong, it should be just a matter of time before the approval process expedites. There should not be any doubt that Beijing gets what Beijing wants.
ATEC thinks it will not be long before we see listing and trading activity on the Hong Kong Exchange grow substantially.
ATEC goes long Hong Kong Exchange. We note there is a level of resistance at around HK$500 to overcome. We will watch if it gets taken. So long as HK$475 holds, we target north of HK$600 for it.
