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Georgina Lee

Deb Price

Good day, traders.
The Shanghai closed at a 10-week high on improved trade sentiment, while the Hang Seng Index slipped.  
Catch up on the day's action below. 
If you have any feedback on our live stocks blog, please shoot it to deb.price@scmp.com. And, after receiving numerous requests, we are trying an experiment and sending out the blog via email each trading day to those who would like it sent that way. If you would, please shoot Deb an email.
-- Georgina Lee and Deb Price in Hong Kong  
 


Stocks Blog: Hong Kong Exchanges and Clearing falls hard after bid for London Stock Exchange 

The Hong Kong Stock Exchange flag, China flag and Hong Kong flag are seen outside of the Hong Kong Stock Exchange in Central. Photo: Dickson Lee



Business

Markets

Hong Kong dollar strengthens against USD on AB InBev's resumption of IPO
MTR falls as it cancels traditional overnight service for Mid-Autumn Festival amid protests


The Shanghai Composite closes at a 10-week high on improved sentiment, but Hong Kong's Hang Seng Index finishes the day down a bit.


Stocks

China stock market

Hong Kong Stock Exchange

Hang Seng Index

Trade war

US-China trade war

Cathay Pacific

Kweichow Moutai

Hong Kong MTR

Hong Kong protests

Live

Here's what we are watching this morning:

US overnight markets/ What futures foretell
--The S&P 500 rose 0.72 per cent, the Nasdaq rose 1.06 per cent and the Dow Jones Industrial Average rose 0.85 per cent. 
-- Hong Kong futures are up 0.4 per cent, and China A50 futures are up 0.3 per cent.
IPO debuts: none to note
Economic statistics/Central Bank action: None to note
Earnings: Sun Hung Kai Properties (16 HK)
Good Reads: Hong Kong Exchanges and Clearing Limited (388 HK) has made a surprise takeover bid for London Stock Exchange Group (LSE), taking its boldest step yet to expand into a global financial marketplace from its current status as China’s offshore fundraising hub, reports Enoch Yiu. New flats at a Wheelock Properties (20 HK) project in Tseung Kwan O failed to hit the mark with investors on Wednesday as sentiment continues to dwindle amid violent protests, report Lam Ka-sing and Holly Chik.
 


Morning guidance 

Cathay Pacific Airways (293 HK) is still a buy, but wait for a better entry point, say Jefferies analysts Andrew Lee and Lois Zhou.
They dropped their price target from HK$15 to HK$12.50. It closed Wednesday up 2.7 per cent at HK$10.72.
Pax -- the number of passengers carried by an airline -- in August declined 11.3 per cent year-on-year, which was the largest decline since 2009. That is after the airline got caught up the fallout from the Hong Kong protests, now in their third month.
Management isn't expecting September will be any less difficult, they said.
"Pax yields under pressure from lower premium class travel, increased mix of transit passengers and negative currency impact from US$ and RMB impacting Air China. Passenger traffic, (RPK) terms, was only -3.6% lower with shorter-haul regional markets' (Mainland China and North-East Asia) passengers harder hit with South Pacific a bright spot," they write.
The analysts now forecast second half losses of HK$973 million. 
"We expect pax traffic and yield pressure to remain near-term headwinds, but pax traffic rebounds quickly post-downturns. This, combined with capacity cuts, leads to 2020 returning to profit after 2H19 losses," they write.
A better entry point would be HK$10.02, they say.
Of analysts tracked by Bloomberg, 12 call it a buy, four a hold and two a sell, with a consensus 12-month target price of $HK12.60.
 

-- Deb Price  
 


Cathay Pacific still a buy, but Jefferies says wait for better entry point

A batch of new flats at a project in Tseung Kwan O failed to hit the mark with investors on Wednesday as sentiment continues to dwindle amid violent protests that show no sign of abating.
By 8.10pm, Wheelock Properties (20 HK) had managed to sell just 177 out of 318 units that went on sale at its Marini and Grand Marini projects.
Just 12 days earlier, buyers had snapped up 435 of 500 flats in the first batch at Marini. The contrast shows the alarming rate at which market sentiment is falling as the massive street rallies stretch into their 14th week.
Read full story here by Lam Ka-sing and Holly Chik.


Wheelock Properties sale in Tseung Kwan O goes flat

Hong Kong Exchanges and Clearing Limited (HKEX) has made a surprise takeover bid for London Stock Exchange Group (LSE), taking its boldest step yet to expand into a global financial marketplace from its current status as China’s offshore fundraising hub.
HKEX made an indicative offer to pay £83.61 per LSE share in cash and stock for the London bourse operator, valuing it at £29.6 billion (US$36.6 billion), according to a filing after Hong Kong’s market hours.
“A combination of HKEX and LSE represents a highly compelling strategic opportunity to create a global market infrastructure group, bringing together the largest and most significant financial centres in Asia and Europe,” the HKEX chairwoman Laura Cha Shih May-lung said in her filing.
The takeover bid – described by the LSE as unsolicited, preliminary and highly conditional – comes seven years after HKEX’s £1.39 billion purchase in 2012 of the London Metal Exchange (LME), a push into commodities trading that paid off for the Hong Kong company in its interim financial results.
Read full story by Enoch Yiu here.
 


ICYMI: Hong Kong stock exchange operator makes surprise bid for London Stock Exchange

US President Donald Trump said on Wednesday that he will delay a planned increase in tariffs on Chinese goods at the request of Vice-Premier Liu He to avoid escalating trade tensions on China’s National Day.
The new 30 per cent tariff rate on US$250 billion worth of imports from China, from the existing 25 per cent rate, has been moved from October 1 to October 15 in recognition of the 70th anniversary of the founding of the People’s Republic of China, which falls on the earlier date, Trump said in a Twitter post.
Trump’s announcement followed Beijing’s unveiling of a list of 16 types of products that will be exempt from the first round of China’s additional tariffs on US imports as the two sides prepare for another round of high-level trade negotiations next month.
While the specific date of the talks are not published, the talks are expected to take place before October 15, paving the way for further postpone or even revoke of some tariffs if the talks in Washington produce a ceasefire.
“I think they did the right thing. I think it was good for them,” Trump told White House reporters earlier on Wednesday, referring to China’s exemptions. “But they took them off, yeah I think it was a gesture, OK. But it was a big move. People were shocked. I wasn’t shocked.”
....on October 1st, we have agreed, as a gesture of good will, to move the increased Tariffs on 250 Billion Dollars worth of goods (25% to 30%), from October 1st to October 15th.
— Donald J. Trump (@realDonaldTrump) September 11, 2019
 
Read full story here. 


Trump delays next China tariffs by two weeks

Anheuser-Busch InBev said on Thursday it is continuing to explore an initial public offering in Hong Kong of its Asia-Pacific unit, Budweiser Brewing Company APAC, two months after saying it will not proceed with the planned listing.
The company’s Asia-Pacific unit has resumed its application for the listing of a minority stake of its shares on the Hong Kong stock exchange, it said on Thursday, adding no assurance can be given on whether the transaction will be completed.
AB InBev, the world’s largest brewer, was aiming to sell as much as US$9.8 billion in Budweiser stock to seek relief from its heavy debt burden before pulling out of the planned listing in July.
The resumption of the listing plans come as a boost for the Hong Kong stock exchange after Reuters reported last month that China’s biggest e-commerce company Alibaba Group Holding had delayed its up to US$15 billion listing in Hong Kong amid growing political unrest in the Asian financial hub. (Alibaba owns the South China Morning Post.)
Read the full story by Reuters here. 


AB InBev back looking at IPO for Budweiser in Hong Kong 

Hong Kong stocks opened higher, up 0.5 per cent at 27,283.98, but then slipped. The CSI 300, which tracks Shenzhen and Shanghai listed blue chiops, was up 0.4 per cent at 3,944.69.
US President Donald Trump said overnight he will delay a planned tariff hike on US$250 billion worth of China imports to October 15 from October 1 as a "gesture of goodwill" for the People's Republic of China's 70th anniversary.
It also came a day after Beijing unveiled a list of 16 types of products that will be exempt from the first round of China’s additional tariffs on US imports, as the two sides prepare for another round of high-level trade negotiations early next month.
AAC Technologies (2018 HK) was up 2.5 per cent at HK$40.6, making it the top early percentage gainer among the blue chips.
HKEX (338 HK) was down 2.4 per cent at HK$240, after it made a surprise, unsolicited takeover bid on the London Stock Exchange, valuing the latter at £29.6 billion ( US$36.6 billion). The indicative offer was to pay £83.61 per LSE share in cash and stock.
In China, Kweichow Moutai (600519 CH) was up 0.9 per cent at 1,079.99 yuan, recovering some of the previous day’s losses after media reported that the per-bottle selling price of its fiery liquor plunged by 100 per cent recently in selective provinces.
Hangzhou Silan Microelectronics (600460 CH) was up 3.1 per cent at 17.11 yuan, while Ping An Insurance (601318 CH) was up 0.6 per cent at 90.13 yuan.
-- Georgina Lee 
 


Hong Kong, China stocks open higher as US delays tariff hike

Wynn Macau (1128 HK) disclosed in an exchange filing today that its third quarter results have been negatively impacted by “significantly lower VIP gaming turnover” due to the US China trade war and disruptions in Hong Kong.
Wynn Macau made such a disclosure based on its parent Wynn Resorts’ recent filing to the US securities regulator pertaining to a senior unsecured note to be issued by two of its subsidiaries.
While Wynn Macau’s total VIP win as a percentage of turnover was within its expected range of 2.7 per cent to 3.0 per cent for July and August, the “unusually low hold in direct VIP operations” negatively impacted EBITDA during the period, it said, without detailing further.
“Hold” is the amount of money kept by the casino, calculated by the amount of chips given out and amount gained back at the end of a day.
This will have a drag on its parent’s overall third quarter results, which also includes its Las Vegas and Boston operations.
The parent’s combined total operating revenues are currently expected to be in the range of approximately US$1.01 billion to US$1.12 billion for the two months ended August 31, 2019, compared to US$1.15 billion for the two months ended August 31, 2018. Based on the low-end, it would amount to a 12 per cent year-on-year decline.
The casino group’s adjusted property EBITDA, excluding certain leased retail space directly owned by Wynn Resorts, is expected at about US$225 million to US$248 million for two months ended August 31, down from US$339.4 million a year ago. “Adjusted Property EBITDA” is defined as net income before interest, depreciation, taxes and amortization, pre-opening expenses, property charges, management and license fees and other non-operating income and expenses.
Wynn Macau is trading down 0.1 per cent at HK$16.94.
Here's a feature on how casino operators are positioning themselves to win market share in Macau's hot Cotai strip. 
-- Georgina Lee
 
 
 


Wynn Macau’s summer operating profit, revenue down on protests, trade war

The takeover bid by Hong Kong Exchanges and Clearing (388 HK) for the London Stock Exchange faces elevated political risks, as the proposed deal would see a Chinese company buying the primary equity markets of both the UK and Italy, and the key infrastructure for European debt markets, said Berenberg Bank, a Hamburg-headquartered banking group whose investment bank unit also publishes equity research. 
The bank said transitioning the Hong Kong exchange onto LSE’s trading architecture could generate cost synergies and revenue synergies from potential UK-China listings. But the potential tie-up between LSE and HKEX would also cause antitrust implications, it added.
“Historically it is political objections that have derailed crossborder M&A in the exchange space,” the report said.
The indicative offer, at £83.61 per LSE share in cash and stock, values LSE at 36.5 times forward 2020 price-to-earnings multiple, and 18.6 times forward 2020 enterprise value-to-EBITDA (earnings before interest, taxes, depreciation and amortization).
HKEX is the top loser among blue chips in morning trading, down 3.2 per cent at HK$238.2, and is the most traded stock, with HK$1.42 billion in turnover.
-- Georgina Lee 
 


Antitrust issues, elevated political risks could derail HKEX’s bid for LSE, says Berenberg Bank

Sales in China of new-energy vehicles, which include fully-electric and plug-in hybrids — declined 16 per cent from a year ago to 85,000 units in August, the China Association of Automobile Manufacturers said Wednesday. The decline came after a 4.7 per cent drop in July.
Leading electric vehicle makers Geely Auto (175 HK) is down 0.9 per cent at HK$13.36. BYD (1211 HK) is down 2.6 per cent at HK$41.4. Johnson Electric (179 HK),  which also serves the automotive sector, is down 0.6 per cent at HK$14.42.
-- Georgina Lee 


  Car makers fall in Hong Kong on August sales drop in China

Country music great Kenny Rogers sang, "you have to know when to hold' em, know when to fold 'em, know when to walk away, and know when to run." When it comes to Macau casino stocks, analysts are saying it's a good time to be holding them -- as in buying them and getting in the game -- because there is so much potential upside. The stocks have been beaten down by a drop in gaming revenue largely due to the trade war and the Hong Kong protests. Here's a look at what analysts are thinking:

 

-- Deb Price


Chart: Macau casino stocks still a good bet, analysts say

Ouch. Not a day to be a stock on the STAR Market.
Of the 29 stocks on China Nasdaq-style tech board in Shanghai, 28 are down. A gauge tracking the group of stocks' movement fell 2.9 per cent in morning trading. It is underperforming the Shanghai Composite Index, which gained 0.2 per cent to 3,015. 
The biggest laggard was Fujian Forecam Optics (688010 CH), down 5.6 per cent to 67.16 yuan. Beijing Worldia Diamond Tools (688028 CH) was down 5 per cent at 108.53 yuan, and Raytron Tech  (688002 CH) was down 4.6 per cent to 49.82.
Beijing ABT Networks (688168 CH), a provider of network security services,  hit a record low since its debut on the board on September 6: It was down 5.5 per cent at 156.48 yuan.
The only stock defying the downward trend was Micro-Tech (Nanjing) (688029 CH). China’s biggest maker of non-vascular stents and disposable biopsy forceps was up 0.2 per cent at 136.91 yuan.
-- Georgina Lee 
 


Most tech stocks had bad morning on STAR Market

China liquor king Kweichow Moutai (600519 CH) fell Wednesday below the 1,100 yuan mark for the first time since closing above it on August 22.  But it jumped 3.2 per cent in morning trading to 1,103.46.
It is one of the most popular stocks of northbound traders on the Stock Connect.
 

-- Deb Price 


Investors back drinking up Kweichow Moutai after Wednesday fall

Cathay Pacific (293 HK) has responded to a sharp decline in passenger numbers in August by axing a number of short and long-haul routes, cutting flights to other destinations, and ordering a hiring and spending freeze.
The airline revealed it was suspending flights today, a day after it announced a 38 per cent drop in customers in August, and said it expected September to also be challenging.
With a difficult winter ahead, and the anti-government protests in Hong Kong showing no signs of coming to an end, the carrier has suspended flights to Dublin, Medan in Indonesia, and daytime flights to Paris and Frankfurt.
Cathay said the Dublin route would be suspended on November 7, and from next year would only operate during the summer months.
It has also cut the number of flights to New York, Washington and Vancouver, with an analyst predicting that short-haul routes to mainland China are likely to be next.
Cathay is trading down 0.9 per cent to HK$10.62 at the lunch break.
Read full story by Danny Lee here.  


Cathay cuts some short and long haul routes after 38 per cent drop in passengers

The latest version of the prospectus of the proposed spinoff by Fosun International and Shanghai Fosun Pharmaceutical’s biopharm unit,  Shanghai Henlius Biotech, will be published today.
 
A stock exchange filing by Fosun International (656 HK)  and Shanghai Fosun Pharma (2196 HK) shows the offer price for each H share of Shanghai Henlius Biotech is HK$49.6 to HK$57.8. A total of 64.695 million shares will be on offer, representing 12 per cent of Shanghai Henlius’ total enlarged  issued share capital.
Based on this, Shanghai Henliu Biotech could raise gross proceeds of between HK$3.21 billion and HK$3.74 billion, assuming that the over-allotment option is not exercised.
Fosun Pharma, together with its parent Fosun International, will indirectly hold about 53.76 per cent of Shanghai Henlius Biotech after the offering. Joint sponsors of the share offering include CICC, Bank of America Merrill Lynch, CMB International, Citi, and Fosun Hani while the financial adviser is UBS.
Shareholders of both Fosun International and Fosun Pharma are entitled to preferential offerings of Shanghai Henlius Biotech, although such details are redacted in the previous version of the prospectus.
Fosun Pharma (2196 HK) was up 1.5 per cent at HK$23.25; Fosun International (656 HK) was flat, at HK$10.62.
-- Georgina Lee 


 Fosun’s spinoff, separate listing of Shanghai Henlius Biotech to raise up to HK$3.74 billion

Shares of Hong Kong Exchanges and Clearing Limited (388 HK) fell by as much as 3.8 per cent to an intraday low of HK$236.6 amid a mixed market, giving back yesterday's 0.3 per cent gains after the bourse operator's unsolicited takeover bid for the London Stock Exchange Group (LSEG).
"HKEX's offer is more likely to face regulatory challenges versus LSEG's proposed Refinitiv acquisition," said Christian Kuendig, senior director of EMEA non-bank financial institutions at Fitch Ratings in an e-mailed note.
"Global regulatory authorities are increasingly concerned about competition in the FMI [financial market infrastructure] space, blocking some major mergers and acquisitions, including the proposed merger between LSEG and Deutsche Boerse in 2017, while triggering divestitures related to other acquisitions, such as the sale of Trayport by ICE to TMX Group in 2017. Increasing control by Chinese authorities over Hong Kong could also raise UK and US regulators' concerns about data and information security."
HKEX is now trading down 3.4 per cent at HK$237.6.
-- Eugene Tang


HKEX shares take a pounding after bid for London Stock Exchange

Hongkongers planning to stay out late to celebrate the Mid-Autumn Festival on Friday will have to find another way home after the city’s troubled rail giant cancelled its overnight services.
The MTR Corporation (66 HK) released a statement on Thursday over the arrangements on the eve of the traditional Chinese festival, confirming an exclusive report by the Post on Wednesday.
Amid the backdrop of months of anti-government protests, during which dozens of MTR stations have been vandalised, the corporation said the decision came after a risk assessment with relevant government departments in light of “the recent situation”.
MTR is trading down 1.2 per cent at HK$47.05.
Read full story here by Kanis Leung.


MTR trading down as it cancels traditional overnight service for Mid-Autumn Festival amid protests

The Hong Kong dollar has strengthened to HK$7.8283 per US dollar, its highest intraday level against the US currency since August 5, as the resumption of AB InBev's US$5 billion initial public offering in the city increases demand for the local currency, causing the exchange rate to strengthen.
-- Eugene Tang


Hong Kong dollar strengthens against USD on AB InBev's resumption of IPO

Ren Zhengfei, the billionaire founder and chief executive of Huawei Technologies, said he is ready to share its 5G technology with potential western buyers.
Ren said Huawei is willing to give buyers perpetual access to Huawei’s existing 5G patents, licences, code, technical blueprints and production know-how for a one-time fee, according to a two-hour interview with The Economist on September 10, the contents of which were confirmed by Huawei.
The acquirer would be allowed to modify the source code, meaning that neither Huawei nor the Chinese government would even have hypothetical control of any telecoms infrastructure built using equipment produced by the new company. Huawei would likewise be free to develop its technology in whatever direction it pleases.
The comments from Ren come as the Chinese telecoms giant remains mired in the middle of the US-China trade war and after it was put on a US trade blacklist in May on national security grounds. This has curtailed its attempts to roll out its next generation 5G network technology across the globe, with the US alleging that its equipment could be used for espionage activity by China’s intelligence agencies.
Read full story by Minghe Hu here. 


Huawei’s Ren Zhengfei ready to sell 5G tech to Western buyer to create rival playing field

The Food and Drug Administration in the US is finalizing guidance on removing all non-tobacco flavoured e-cigarettes amid a surge in unexplained lung illness and deaths linked to their use, and some vaporizer makers in China are taking a hit.
The rise in underage vaping in the US is behind the administration’s plan to ban flavoured e-cigarettes. Unexplained lung illnesses in the US have claimed six deaths so far, which US health regulators have warned are linked to vaping. There have been more than 450 cases of lung illness linked to using e-cigarettes across the US.
Vaporizer and e-cigarette related stocks are down in China, with Shenzhen Jinjia Group  (002191 CH) falling 3 per cent to 11.17 yuan, Shenzhen Megmeet Electrical (002851 CH), sliding 1.3 per cent to 22.12 yuan. EVE Energy (300014 CH), which makes batteries for e-cigarettes, plunged by the 10 per cent daily down limit to 39.2 yuan.
-- Georgina Lee 
 


Vaporizer makers down in China after US prepares ban on flavoured e-cigarettes

Terry Gou, founder of Foxconn, the world’s biggest maker of electronic components,  has quit Taiwan's mainland opposition party Kuomingtang in a move seen as paving the way for his run for president.
The billionaire-turned politician quit the party after the Kuomingtang published a half-page ad in several leading Taiwanese newspapers today asking Guo to cooperate in the January election with  Kuomintang (KMT) presidential candidate Han Kuo-yu, who beat Gou in the party’s primaries in July.
“Taiwan people will never agree with such an out-of-date party as well as conservative and archaic central standing committee members who put their own interests before the party,” Gou’s office said in a statement. “This has contradicted what Mr Gou thought when he [decided] to return to the party.”
To stand as an independent, Gou must submit an application by next Tuesday. Independent candidates then have until November to garner sufficient support to enter the presidential poll.
In Hong Kong, FIH Mobile (2038 HK), controlled by Foxconn Technology Group,  surged 9.7 per cent to HK$1.13.  In Taiwan, Hon Hai Precision Industry (2317 TT) , Foxconn’s formal name trading on the Taiwan exchange, is up 2 per cent at TWD 76.
-- Georgina Lee 
 


FIH Mobile surges as shareholder Foxconn’s founder Terry Guo seen as ready to run for Taiwan's presidency

Chinese stocks had a good day, with the Shanghai Composite Index closing at its highest level since July 2. 
The CSI 300, which tracks Shenzhen and Shanghai blue chips, rose 1.1 per cent to 3,972.38, while the Shanghai Composite Index rose 0.7 per cent to 3,0312.4.
Leading gains in Shanghai were financials, with Ping An Insurance (601318 CH) up 3.1 per cent at 92.34 yuan, and China Life Insurance (601628 CH) up 1.8 per cent to 29.8 yuan. People’s Insurance Company (Group) (601319 CH) rose 2.8 per cent to 9.42 yuan.
Improved August profits reported by some of the Chinese brokerages also supported the sector, said Kenny Tang, chief executive of Royston Securities. Haitong Securities (600834 CH) jumped 5.6 per cent to 16.54 yuan, while Citic Securities (600030 CH) rose 1.3 per cent to 24.71 yuan.
Tang said investors are hopeful that the upcoming trade negotiations between Chinese and US officials in October in Washington will bring the two sides closer to a deal.
Traders are still expecting more consumption stimulus measures to be introduced by Beijing, and some expect potential benchmark interest rate cuts by the People’s Bank of China, in line with a more loosening stance of global central banks.
“With the Shanghai Composite re-climbing to above 3,000-level, I expect the direction of the benchmark is still upwards, given the economic support measures expected from the government and the central bank,” said Tang.

-- Georgina Lee 
 


Shanghai benchmark closes at highest level in 10 weeks on Trump trade bump 

Remember, traders, no northbound trading on the Stock Connect Friday. But the Hong Kong stock market will be open for its usual hours. 
Southbound Mainland-Hong Kong Stock Connect trading is closed this week from Wednesday to Friday.

-- The blog team


Reminder: No northbound trading Friday on Stock Connect due to Mid-Autumn Festival

Hong Kong Exchanges and Clearing Limited (388 HK) weighed down the Hang Seng Index today, after its surprise bid for the London Stock Exchange turned it into the top percentage loser on the benchmark.
The Hang Seng Index lost 0.3 per cent, closing at 27,087.63. HKEX ended down 3.5 per cent at HK$237.40.
Investors weren't happy with the Hong Kong bourse operator’s proposed unsolicited US$36.6 billion bid to take over the London Stock Exchange.
Citigroup on Wednesday cut the exchange operator’s rating to “sell” from “buy” with a new target of HK$210 a share, saying the high offer could weigh on HKEX’s shares in the near term, Bloomberg reported.
Selective properties pulled back previous day’s gains, with Henderson Land (12 HK) down 1.5 per cent at HK$38.2, Sun Kung Kai Properties (16 HK) down 0.8 per cent at HK$116.9, and Link REIT (823 HK) down 1 per cent HK$89.1.
Despite the ongoing protests in the city which tanked August tourist arrivals by 40 per cent, some analysts see Hong Kong properties as attractive and do not expect their falls to continue.
“Many of the Hong Kong property landlords and developers are trading at a discount to net asset value at 30 per cent. Their dividend yields are still attractive, at 6 per cent. At current levels, their share prices have already reflected the impact that the Hong Kong protests have on their businesses,” said Kenny Tang, chief executive of Royston Securities.
-- Georgina Lee
 
