SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Thematic (Sector/Industry)

The first 10 months of 2016 brought its fair share of macroeconomic challenges to the region. During the 10 months, the Straits Times Index (STI) generated a 1% total return, which was not far behind that of the MSCI AC Asia Pacific Index. However, the 1% gain is hardly the full story for the 30 STI stocks in the year thus far.  All five Global Industry Classification Standards (GICS®) Sectors without STI representation also generated gains over the first 10 months. These Sectors are also at junctures of opportunity and challenge, with Sector-wide themes such as technology disruptors, population longevity &amp; growth and asymmetric trends in commodity prices. The five Sectors have also become increasingly important for investors who seek portfolio diversification in times of increased economic uncertainty.

The first 10 months of 2016 brought its fair share of macroeconomic challenges to the region. During the 10 months, the Straits Times Index (STI) generated a 1% total return, which was not far behind that of the MSCI AC Asia Pacific Index. However, the 1% gain is hardly the full story for the 30 STI stocks in the year thus far.  All five Global Industry Classification Standards (GICS®) Sectors without STI representation also generated gains over the first 10 months. These Sectors are also at junctures of opportunity and challenge, with Sector-wide themes such as technology disruptors, population longevity &amp; growth and asymmetric trends in commodity prices. The five Sectors have also become increasingly important for investors who seek portfolio diversification in times of increased economic uncertainty. 

Buoyant Returns Beyond the Benchmark in 2016 YTD

The accounting research firm, GMT Research

Lisa Mangkornkarn

The accounting research firm

GMT Research

GMT Research provides independent insight into markets, sectors and companies throughout Asia. Our unique method of mining a comprehensive collection of corporate financial statements for key data allows us to evaluate the financial health of a company, sectors and the market at large. We also investigate the application of accounting standards by companies and sectors, shedding light on the quality of reported profits. Armed with this information, we help investment professionals navigate the financial landscape.

Given that related party transactions are somewhat of a national sport in Asia and a key component of most accounting frauds, it is somewhat surprising that no-one’s gone through and detailed each company’s involvement in them. Well, that is until now. Yes, we locked two analysts in a room and told them to download the annual reports of every company with a market capitalisation over US$1bn in Hong Kong and Singapore, around 360 of them. They were then instructed to trawl through each annual report and calculate related party transactions as a percentage of sales and expenses. Three weeks later our analysts emerged somewhat paler and thinner. Their results are cause for concern.

Given that related party transactions are somewhat of a national sport in Asia and a key component of most accounting frauds, it is somewhat surprising that no-one’s gone through and detailed each company’s involvement in them. Well, that is until now. Yes, we locked two analysts in a room and told them to download the annual reports of every company with a market capitalisation over US$1bn in Hong Kong and Singapore, around 360 of them. They were then instructed to trawl through each annual report and calculate related party transactions as a percentage of sales and expenses. Three weeks later our analysts emerged somewhat paler and thinner. Their results are cause for concern.

RELATED PARTIES: Family Games in HK and SG

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CK Hutchison Holdings (1 HK)</a> has announced a 7% increase in underlying profit in 2025 of HK$22.3bn. </li>
<li>Factoring in a one-off ⁠non-cash loss of HK$10.9bn relating to the UK telcos merger of 3UK with Vodafone, net profit declined ⁠31% to HK$11.8bn.  </li>
<li>Chairman Victor Li Tzar-kuoi added the group’s businesses will face "new and perhaps unforeseen challenges in 2026"; and is under “absolutely no pressure” to sell any assets.</li>
</ul>



CK Hutchison Holdings (1 HK) has announced a 7% increase in underlying profit in 2025 of HK$22.3bn. 
Factoring in a one-off ⁠non-cash loss of HK$10.9bn relating to the UK telcos merger of 3UK with Vodafone, net profit declined ⁠31% to HK$11.8bn.  
Chairman Victor Li Tzar-kuoi added the group’s businesses will face "new and perhaps unforeseen challenges in 2026"; and is under “absolutely no pressure” to sell any assets.


CK Hutchison (1 HK): "New And Perhaps Unforeseen Challenges"

<ul>
<li>It was a sure bet Panama's highest court would annul <a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CK Hutchison Holdings (1 HK)</a>'s  Panama Ports Company (PPC) port contracts. Less clear are the next steps. </li>
<li>The Panamanian government has tapped <a href="https://www.smartkarma.com/entities/ap-moeller-maersk-a-s" target="_blank" data-smartkarma-citation="entities:22428:1" rel="noopener">AP Moeller - Maersk A/S (MAERSKB DC)</a>'s APM Terminals as the temporary administrator - or "neutral stabiliser" - via a phased handover of the ports.</li>
<li>PPC has already indicated it will seek a "clarification" of the ruling. And CKH can still sue the Republic of Panama in international tribunals.</li>
</ul>


It was a sure bet Panama's highest court would annul CK Hutchison Holdings (1 HK)'s  Panama Ports Company (PPC) port contracts. Less clear are the next steps. 
The Panamanian government has tapped AP Moeller - Maersk A/S (MAERSKB DC)'s APM Terminals as the temporary administrator - or "neutral stabiliser" - via a phased handover of the ports.
PPC has already indicated it will seek a "clarification" of the ruling. And CKH can still sue the Republic of Panama in international tribunals.


CKH (1 HK): The Courts (Predictably) Annul The Panama Concessions. Now What?

<ul>
<li>Panama’s Supreme Court is expected to make a decision shortly on whether <a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CK Hutchison Holdings (1 HK)</a> ("CKH") will retain the concessions to operate two key Panama Canal ports.</li>
<li>CKH and Panama's Comptroller hold diametrically opposite views on the legitimacy of the 2021 licence renewal and operational compliance/status of these ports. To categorise the situation political is an understatement.</li>
<li>The (largely) expected Panamanian pushback appears factored in, with the market looking further afield to the sale of the remaining 41 global ports. CKH is trading full here. </li>
</ul>


Panama’s Supreme Court is expected to make a decision shortly on whether CK Hutchison Holdings (1 HK) ("CKH") will retain the concessions to operate two key Panama Canal ports.
CKH and Panama's Comptroller hold diametrically opposite views on the legitimacy of the 2021 licence renewal and operational compliance/status of these ports. To categorise the situation political is an understatement.
The (largely) expected Panamanian pushback appears factored in, with the market looking further afield to the sale of the remaining 41 global ports. CKH is trading full here. 


CKH (1 HK): Trading Full Ahead Of Supreme Court Ruling

Hong Kong

CK Infrastructure is a global infrastructure company with diversified investments in energy, transportation, water, and waste management sectors. It also produces construction materials like cement and asphalt. The company was founded in 1996 and is headquartered in Central, Hong Kong.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

CK Infrastructure (1038 HK)

Buoyant Returns Beyond the Benchmark in 2016 YTD

The first 10 months of 2016 brought its fair share of macroeconomic challenges to the region. During the 10 months, the Straits Times Index (STI)...

Singapore Exchange Ltd (SGX)

CK Hutchison (1 HK): "New And Perhaps Unforeseen Challenges"

CKH-controlled Panama Ports Company announced it has widened its claims in an international arbitration case against the Republic of Panama,...

David Blennerhassett

CKH (1 HK): The Courts (Predictably) Annul The Panama Concessions. Now What?

At a ~48% NAV discount and forward P/B of 0.44x, CKH is not expensive. I see this court decision getting bureaucratically tangled. Near term,...

David Blennerhassett

CKH (1 HK): Trading Full Ahead Of Supreme Court Ruling

The (largely) expected Panamanian pushback appears factored in, with the market looking further afield to the sale of the remaining 41 global...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Buoyant Returns Beyond the Benchmark in 2016 YTD

The first 10 months of 2016 brought its fair share of macroeconomic challenges to the region. During the 10 months, the Straits Times Index (STI)...

Singapore Exchange Ltd (SGX)

RELATED PARTIES: Family Games in HK and SG

Given that related party transactions are somewhat of a national sport in Asia and a key component of most accounting frauds, it is somewhat...

GMT Research

CK Hutchison (1 HK): "New And Perhaps Unforeseen Challenges"

CKH-controlled Panama Ports Company announced it has widened its claims in an international arbitration case against the Republic of Panama,...

David Blennerhassett

CKH (1 HK): The Courts (Predictably) Annul The Panama Concessions. Now What?

At a ~48% NAV discount and forward P/B of 0.44x, CKH is not expensive. I see this court decision getting bureaucratically tangled. Near term,...

David Blennerhassett

CKH (1 HK): Trading Full Ahead Of Supreme Court Ruling

The (largely) expected Panamanian pushback appears factored in, with the market looking further afield to the sale of the remaining 41 global...

David Blennerhassett