Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Cross Asset Strategy

<ul>
<li>
Coal / In Depth: China’s never-ending coal price woes
</li>
<li>
Rains / Unending torrential rain leaves at least 24 dead across China. At least 24 people have died and six more are missing as torrential rain continues to batter parts of China, according to state media reports and official statements.
</li>
<li>
Inflows / Foreign capital roars back into China’s stock market
</li>
</ul>



Coal / In Depth: China’s never-ending coal price woes


Rains / Unending torrential rain leaves at least 24 dead across China. At least 24 people have died and six more are missing as torrential rain continues to batter parts of China, according to state media reports and official statements.


Inflows / Foreign capital roars back into China’s stock market



CX Daily: China’s Never-Ending Coal Price Woes

<ul><li>In Depth: Chinese consumer startups find taking on global titans is no easy task</li><li>Shanghai’s top prosecutor investigated for graft</li><li>Hong Kong money man Calvin Choi faces two-year industry ban for misconduct</li></ul>

In Depth: Chinese consumer startups find taking on global titans is no easy taskShanghai’s top prosecutor investigated for graftHong Kong money man Calvin Choi faces two-year industry ban for misconduct

CX Daily: Chinese Consumer Startups Find Taking On Global Titans Is No Easy Task

<ul><li>In Depth: Will wind go out of SPACs’ sails in Singapore and Hong Kong?</li><li>China’s cabinet vows stronger policy to boost jobs amid Covid upsurge</li><li>Yuan losses have room to run as Covid puts economy under siege</li></ul>

In Depth: Will wind go out of SPACs’ sails in Singapore and Hong Kong?China’s cabinet vows stronger policy to boost jobs amid Covid upsurgeYuan losses have room to run as Covid puts economy under siege

CX Daily: Will Wind Go Out of SPACs’ Sails in Singapore and Hong Kong?

<ul><li>Hong Kong health expert downplays city’s Covid fatality rate</li><li>Shanghai offers support for importing Covid drugs and vaccines as it battles outbreak</li><li>Distressed Chinese developer Sunac sweetens proposed bond extension plan</li></ul>

Hong Kong health expert downplays city’s Covid fatality rateShanghai offers support for importing Covid drugs and vaccines as it battles outbreakDistressed Chinese developer Sunac sweetens proposed bond extension plan

CX Daily: China’s Battle to Stabilize Its Economy

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Thematic (Sector/Industry)

<ul>
<li>Global exchanges are adapting to a more price pressured environment in trading fees, including the growth of off-exchange trading</li>
<li>The most forward looking exchanges are actively diversifying their revenue base away from trading and transaction fees, and they are focusing on post-trade services, as well as monetising their access to “big data” and data flows</li>
<li>Select exchanges have accelerated their revenue diversification strategies through M&amp;A; two high profile examples are <a href="https://www.smartkarma.com/entities/intercontinental-exchange-inc" target="_blank" data-smartkarma-citation="entities:10221:1" rel="noopener">Intercontinental Exchange (ICE US)</a> acquiring Ellie Mae and <a href="https://www.smartkarma.com/entities/london-stock-exchange-group" target="_blank" data-smartkarma-citation="entities:22034:1" rel="noopener">London Stock Exchange (LSE LN)</a> acquiring Refinitiv which, in part, reflects the attraction of the “big data” opportunity</li>
<li>The recent merger rumours within the exchanges sector between <a href="https://www.smartkarma.com/entities/cboe-global-markets-inc" target="_blank" data-smartkarma-citation="entities:20189:1" rel="noopener">Cboe Global Markets (CBOE US)</a> &amp; <a href="https://www.smartkarma.com/entities/cme-group-inc" target="_blank" data-smartkarma-citation="entities:12353:1" rel="noopener">Cme Group Inc (CME US)</a> – even though this merger did not materialise – reflect the potential for cost savings and synergies from exchange mergers</li>
<li>In emerging markets, the shift away from trading revenues is also apparent, although the pace of change seems more measured due to regulatory constraints</li>
<li>Among developed market exchanges, we believe that ICE is the “poster child” on revenue transformation, and is not overly expensive on valuations, with <a href="https://www.smartkarma.com/entities/deutsche-boerse-ag" target="_blank" data-smartkarma-citation="entities:21604:1" rel="noopener">Deutsche Boerse Ag (DB1 GR)</a> being the value pick and we also find CBOE to be attractive; we believe that LSEG is still a “show me” story on Refinitiv integration, even if valuations are undemanding</li>
<li>In emerging markets, we believe that out-of-favour <a href="https://www.smartkarma.com/entities/b3-sa-brasil-bolsa-balcao" target="_blank" data-smartkarma-citation="entities:24580:1" rel="noopener">B3 Sa - Brasil Bolsa Balcao (B3SA3 BZ)</a> shares have potential to reverse the trend and re-rate on attractive valuations, with smaller cap <a href="https://www.smartkarma.com/entities/bolsa-mexicana-de-valores-sab" target="_blank" data-smartkarma-citation="entities:24766:1" rel="noopener">Bolsa Mexicana De Valores Sab (BOLSAA MM)</a> attractive on both its broad revenue mix and valuations; we are bearish on <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing" target="_blank" data-smartkarma-citation="entities:490:1" rel="noopener">HKEX (388 HK)</a> shares, with the market overly positive on the exchange’s prospects, in our view</li>
<li>
<a href="https://www.smartkarma.com/entities/singapore-exchange-ltd" target="_blank" data-smartkarma-citation="entities:1047:1" rel="noopener">SGX (SGX SP)</a> is one to watch; management has more to do to diversify the revenue base, yet its valuations are undemanding and competition concerns may be overdone</li>
<li>We include the listed crypto exchange <a href="https://www.smartkarma.com/entities/coinbase-global-inc" target="_blank" data-smartkarma-citation="entities:32227:1" rel="noopener">Coinbase (COIN US)</a> in this exchanges report for the first time; with its business model very geared towards trading and transaction fees, we are cautious on Coinbase given the very high volatility in both volumes and prices inherent in the world of crypto trading, as well as the regulatory hurdles</li>
<li>Risks to our positive views on B3, BolsaMex, ICE, CBOE and Deutsche Boerse include worse than expected post-trade and data and IT revenue generation as well as a more hostile regulatory climate; risks to our bearish views on HKEX and Coinbase are better than expected revenue and EBITDA growth</li>
</ul>


Global exchanges are adapting to a more price pressured environment in trading fees, including the growth of off-exchange trading
The most forward looking exchanges are actively diversifying their revenue base away from trading and transaction fees, and they are focusing on post-trade services, as well as monetising their access to “big data” and data flows
Select exchanges have accelerated their revenue diversification strategies through M&amp;A; two high profile examples are Intercontinental Exchange (ICE US) acquiring Ellie Mae and London Stock Exchange (LSE LN) acquiring Refinitiv which, in part, reflects the attraction of the “big data” opportunity
The recent merger rumours within the exchanges sector between Cboe Global Markets (CBOE US) &amp; Cme Group Inc (CME US) – even though this merger did not materialise – reflect the potential for cost savings and synergies from exchange mergers
In emerging markets, the shift away from trading revenues is also apparent, although the pace of change seems more measured due to regulatory constraints
Among developed market exchanges, we believe that ICE is the “poster child” on revenue transformation, and is not overly expensive on valuations, with Deutsche Boerse Ag (DB1 GR) being the value pick and we also find CBOE to be attractive; we believe that LSEG is still a “show me” story on Refinitiv integration, even if valuations are undemanding
In emerging markets, we believe that out-of-favour B3 Sa - Brasil Bolsa Balcao (B3SA3 BZ) shares have potential to reverse the trend and re-rate on attractive valuations, with smaller cap Bolsa Mexicana De Valores Sab (BOLSAA MM) attractive on both its broad revenue mix and valuations; we are bearish on HKEX (388 HK) shares, with the market overly positive on the exchange’s prospects, in our view

SGX (SGX SP) is one to watch; management has more to do to diversify the revenue base, yet its valuations are undemanding and competition concerns may be overdone
We include the listed crypto exchange Coinbase (COIN US) in this exchanges report for the first time; with its business model very geared towards trading and transaction fees, we are cautious on Coinbase given the very high volatility in both volumes and prices inherent in the world of crypto trading, as well as the regulatory hurdles
Risks to our positive views on B3, BolsaMex, ICE, CBOE and Deutsche Boerse include worse than expected post-trade and data and IT revenue generation as well as a more hostile regulatory climate; risks to our bearish views on HKEX and Coinbase are better than expected revenue and EBITDA growth


Exchanges – More than Just Trading Places

Hong Kong

Hong Kong Exchanges and Clearing Limited (HKEX) operates a range of equity, commodity, fixed income, and currency markets, providing listing, trading, clearing, and settlement services for securities and derivatives. It also functions as a frontline regulator for companies listed in Hong Kong. HKEX was formally established on March 6, 2000, and is headquartered in Exchange Square, Central, Hong Kong.

Hong Kong Exchanges and Clearing (388 HK)

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

Hong Kong Exchanges and Clearing (388 HK)

CX Daily: China’s Never-Ending Coal Price Woes

Coal / In Depth: China’s never-ending coal price woes. Rains / Unending torrential rain leaves at least 24 dead across China

Caixin Global

CX Daily: Chinese Consumer Startups Find Taking On Global Titans Is No Easy Task

In Depth: Chinese consumer startups find taking on global titans is no easy task. Shanghai’s top prosecutor investigated for graft

Caixin Global

CX Daily: Will Wind Go Out of SPACs’ Sails in Singapore and Hong Kong?

In Depth: Will wind go out of SPACs’ sails in Singapore and Hong Kong? China’s cabinet vows stronger policy to boost jobs amid Covid upsurge

Caixin Global

CX Daily: China’s Battle to Stabilize Its Economy

Hong Kong health expert downplays city’s Covid fatality rate; Shanghai offers support for importing Covid drugs and vaccines as it battles outbreak

Caixin Global

Exchanges – More than Just Trading Places

We assess exchanges based on revenue mix ex-trading; the poster child is ICE, other attractive stocks are Deutsche Borse, CBOE, B3 & BolsaMex, with...

Victor Galliano

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)