Arbitrage

Mainlanders use ‘free money’ from Hong Kong banks to earn higher returns at home

When tax bills arrive from the Inland Revenue each year, Hong Kong banks aggressively market loans to customers. Photo: Garrige Ho

Mainland Chinese working in Hong Kong have found a way to use “free money” from local banks to invest in profitable financial products across the border.

Thursday, 27 February, 2014, 12:42am 7 comments

ETFs to track HK indices coming

The mainland is expected to launch exchange-traded funds (ETFs) that track the performance of Hong Kong stock indices this year.

It would be the first product that would allow indirect trading of the city's equities by mainland investors.

16 Jun 2012 - 12:00am

HK banks' mainland exposure may not be as risky as feared

Ratings agency Fitch warned yesterday that it could downgrade the credit standing of Hong Kong's banks because of their fast-growing exposure to the mainland.

Fitch is not the only one that's nervous. In April, the Hong Kong Monetary Authority called the city's banks sharply to heel over the speed at which they were extending new loans to mainland companies.

25 Oct 2011 - 12:00am

The long and short of it all

News that George Soros' investment fund will cease managing money for clients and restrict itself to the family's own, less-than-modest hoard of US$25 billion, marks a significant turning point in the career of one of the world's most successful hedge fund managers.

8 Aug 2011 - 12:00am

HSI Services to launch index series for dual-listed firms

HSI Services, compiler of the benchmark Hang Seng Index, will today unveil an index series tracking companies dual listed in Hong Kong and mainland, a move brokers said would improve transparency but would not provide a tool for arbitrage in the near term.

29 Jun 2007 - 12:00am

Dual-listed shares increase need for arbitrage platform

Sharp difference in stock prices dictates a shake-up

When Joseph Yam called early this year for a system to take advantage of the gaping price differential between the same shares trading in Hong Kong and on the mainland, he set off a debate that cuts to the heart of the mainland's market and currency controls.

29 Apr 2007 - 12:00am

Arbitrage trade would poke big hole through closed capital account

'Regulator mulls arbitrage scheme for dual-listed stocks'

SCMP headline,

March 8

THEY JUST WON'T give up. Government officials on both sides of the border find it offensive that the shares of mainland companies with listings in both Shanghai and Hong Kong should trade at different prices in the two markets.

12 Mar 2007 - 12:00am

The pitfalls of being flagged a political risk

Hong Kong is a city where making money matters more than idealistic notions of political principle. That oft-repeated refrain by proponents of the status quo has begun to look outdated in an era of heightened political consciousness, yet financial markets have barely registered a flicker of fear.

7 May 2004 - 12:00am

Benefits from yuan down track

Aside from a low-risk interest rate arbitrage between Hong Kong dollars and yuan cash deposits, analysts say there are few immediate benefits from the yuan-denominated accounts approved by the government last week and expected to be offered to consumers in the new year.

23 Nov 2003 - 12:00am

Economics professor creates history by asking court to overrule powerful ministry

Citing the rules of the World Trade Organisation, a well-known economics professor has filed a suit against the Ministry of Finance, the first time an individual has taken on the might of the department that holds the nation's purse strings.

10 Dec 2001 - 12:00am

HKEx to ease tick rule

Hong Kong Exchanges and Clearing will from Monday relax the tick rule on short selling to boost liquidity. The relaxation will only apply to index arbitrage transactions carried in the proprietary account of a broker.

28 Nov 2001 - 12:00am

Bill 'vital' to protect investors

The Government has hit back at criticism of the Composite Securities and Futures Bill by 10 international securities houses, claiming the bill was vital to protect investors and to bring Hong Kong law in line with international standards.

A Government source said that while industry's concerns would be considered, the needs of everyone involved had to be balanced.

26 Jun 2000 - 12:00am

Traders pounce on copper price gap

Copper stocks in China have surged in the past two weeks, draining reserves in Singapore warehouses.

The mainland's mounting stockpile has also sparked a debate about whether the country might be seeing a pick-up in demand.

Stocks in Shanghai have this week risen 947 tonnes to 62,228 tones.

Last week, they increased 618 tonnes.

18 Mar 1999 - 12:00am

Big-caps popular as short sales rise

Short sales volumes in the Hong Kong stock market yesterday struck their highest level so far this year, with their influence magnified by dwindling turnover ahead of the Lunar New Year break.

Bets placed against the cash market as a proportion of turnover hit 18 per cent, with solid stock-lending of HSBC Holdings, China Telecom and Hang Seng Bank.

5 Feb 1999 - 12:00am

T+2 casualties deserve copious crocodile tears

Doors should be closed to some people and a good time for the Hong Kong Government to do it is when a newly formed group of big foreign players comes calling to plead that settlement rules be relaxed.

16 Sep 1998 - 12:00am

Pages