China and US Equity Analyst

Roger Xie

Thematic (Sector/Industry)

<ul>
<li>It is reported that Hong Kong market regulator (Securities and Futures Commission) and market operator <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> are conducting study on the potential SPAC listings (Special-purpose acquisition company).  We believe <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> has always committed to be opened-mind to explore the dynamic and trend of capital market. However, Hong Kong market unlikely adopts the backdoor listings and shell activities such as SPACs. In contrast, regulator intends to simplify listing requirements and encourage more companies to go through regular IPO listing process amid to protect investor interest .</li>
<li>
<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> has achieved a blockbuster year for IPO market in 2020. The total IPO capital raised has reached HK$ 400bn, a jump of 27% year-over-year. Hong Kong has been ranked No. 2 globally by IPO capital raised and No. 4 by number of new IPO deals. We think the trend will continue and reiterate our call that Mega IPO and Chinese ADR homecoming will  reshape the landscape of Hong Kong capital market in long-run.</li>
<li>SPAC,  also known as a ‘blank check company’, is a publicly held investment vehicle created to merge with a company, thereby bringing the company public. Historically, the types of companies that have gone public through a SPAC have tended to be high-growth companies or those who wanted to raise more proceeds than would have been available to them through a traditional IPO.</li>
</ul>


It is reported that Hong Kong market regulator (Securities and Futures Commission) and market operator HKEX (388 HK) are conducting study on the potential SPAC listings (Special-purpose acquisition company).  We believe HKEX (388 HK) has always committed to be opened-mind to explore the dynamic and trend of capital market. However, Hong Kong market unlikely adopts the backdoor listings and shell activities such as SPACs. In contrast, regulator intends to simplify listing requirements and encourage more companies to go through regular IPO listing process amid to protect investor interest .

HKEX (388 HK) has achieved a blockbuster year for IPO market in 2020. The total IPO capital raised has reached HK$ 400bn, a jump of 27% year-over-year. Hong Kong has been ranked No. 2 globally by IPO capital raised and No. 4 by number of new IPO deals. We think the trend will continue and reiterate our call that Mega IPO and Chinese ADR homecoming will  reshape the landscape of Hong Kong capital market in long-run.
SPAC,  also known as a ‘blank check company’, is a publicly held investment vehicle created to merge with a company, thereby bringing the company public. Historically, the types of companies that have gone public through a SPAC have tended to be high-growth companies or those who wanted to raise more proceeds than would have been available to them through a traditional IPO.


SPACs Coming to Hong Kong ? We Don't Think So

Alpha-Centric ESG Research

Kyle Rudden

In <a href="https://www.smartkarma.com/insights/carbon-footprint-of-freight-transportation-and-logistics-and-other-esg-issues" target="_blank" data-smartkarma-citation="insights:48581" rel="noopener">Carbon Footprint of Freight Transportation and Logistics and Other ESG Issues</a>, I addressed the most material aspects of global freight and logistics – specifically, its carbon footprint and future direction thereof. It also conveyed optimism, a silver lining around a mostly negative ESG topic.<a href="https://www.smartkarma.com/entities/jd-logistics" target="_blank" data-smartkarma-citation="entities:31500:1" rel="noopener">JD Logistics (JDL HK)</a> is part of that silver lining, an unequivocal bright spot, and a company that is more "solution" than "problem" in what is otherwise a problematic space from a sustainability/ESG perspective. JDL is a clear leader in the "greening" and decarbonisation of global supply chains.This is especially important given JDL's China-focus, one of the two largest logistics markets worth nearly US$3 trillion (and growing) of the US$10-12 trillion global total. Whilst an economic boon, the yang that goes with that yin is GHG emissions, and China needs companies like JDL.

In Carbon Footprint of Freight Transportation and Logistics and Other ESG Issues, I addressed the most material aspects of global freight and logistics – specifically, its carbon footprint and future direction thereof. It also conveyed optimism, a silver lining around a mostly negative ESG topic.JD Logistics (JDL HK) is part of that silver lining, an unequivocal bright spot, and a company that is more "solution" than "problem" in what is otherwise a problematic space from a sustainability/ESG perspective. JDL is a clear leader in the "greening" and decarbonisation of global supply chains.This is especially important given JDL's China-focus, one of the two largest logistics markets worth nearly US$3 trillion (and growing) of the US$10-12 trillion global total. Whilst an economic boon, the yang that goes with that yin is GHG emissions, and China needs companies like JDL.

JD Logistics: More Solution Than Problem in a Problematic ESG Space

The collective carbon footprint of global freight transportation and logistics is utterly massive, and growing. Freight and logistics accounts for 10-15% of the world's greenhouse gas (GHG) emissions, or 3.4-5.1 billion tonnes of carbon dioxide (CO2) per year of the world's 34 billion-tonne total. Current GHG mitigation and decarbonisation policies will be enough to fully offset GHG emissions from expected growth in freight transportation and logistics. Projections suggest a 60-80% increase in emissions by 2050, when a decrease of 55-80% is needed to meet the Paris Agreement goals.Climate impacts of trade growth are compounded by how it will shift freight movement from North Atlantic to Indian Ocean corridors, increasing average distances 12%. More critical is the local leg; 10% by tonne-kilometres but 30% of GHGs (inland modes like trucking are more GHG-intensive).On a company level, carbon footprint – present and future – depends on several things. Aside from macro issues like regional fuel mix and climate policies, two big factors are: 1) a company's specific function (e.g., freight trains vs. logistics software), and 2) its decarbonisation initiatives.The collective carbon footprint is a major ESG issue but we should not apply a broad-brush. Freight and logistics companies are vital to the economy and deliver life-critical goods like medication and food. Moreover, companies like <a href="https://www.smartkarma.com/entities/jd-logistics" target="_blank" data-smartkarma-citation="entities:31500:1" rel="noopener">JD Logistics (JDL HK)</a> – are leading a "greening" of supply chains.This is an important ESG issue to watch, but not an "exclusionary screen" by any means.

The collective carbon footprint of global freight transportation and logistics is utterly massive, and growing. Freight and logistics accounts for 10-15% of the world's greenhouse gas (GHG) emissions, or 3.4-5.1 billion tonnes of carbon dioxide (CO2) per year of the world's 34 billion-tonne total. Current GHG mitigation and decarbonisation policies will be enough to fully offset GHG emissions from expected growth in freight transportation and logistics. Projections suggest a 60-80% increase in emissions by 2050, when a decrease of 55-80% is needed to meet the Paris Agreement goals.Climate impacts of trade growth are compounded by how it will shift freight movement from North Atlantic to Indian Ocean corridors, increasing average distances 12%. More critical is the local leg; 10% by tonne-kilometres but 30% of GHGs (inland modes like trucking are more GHG-intensive).On a company level, carbon footprint – present and future – depends on several things. Aside from macro issues like regional fuel mix and climate policies, two big factors are: 1) a company's specific function (e.g., freight trains vs. logistics software), and 2) its decarbonisation initiatives.The collective carbon footprint is a major ESG issue but we should not apply a broad-brush. Freight and logistics companies are vital to the economy and deliver life-critical goods like medication and food. Moreover, companies like JD Logistics (JDL HK) – are leading a "greening" of supply chains.This is an important ESG issue to watch, but not an "exclusionary screen" by any means.

Carbon Footprint of Freight Transportation and Logistics and Other ESG Issues

Last week's announcement by Singapore Exchange – regarding its launching four FTSE ESG Index futures – is a really big deal for SGX. Not that it will not solve all of SGX's problems overnight; the liquidity-building takes time, and four ESG contracts won't make up for all those lost MSCI trades.Nonetheless, these ESG futures contracts are "worth" more than one might think, in two ways. For SGX FIRST, the launch proves its ability to execute. For SGX in general, it's a much-needed boost – financial and psychological – after last year's MSCI losses.I will be publishing a series of on various ESG investment products, starting with derivatives (very soon). That will provide additional detail.

Last week's announcement by Singapore Exchange – regarding its launching four FTSE ESG Index futures – is a really big deal for SGX. Not that it will not solve all of SGX's problems overnight; the liquidity-building takes time, and four ESG contracts won't make up for all those lost MSCI trades.Nonetheless, these ESG futures contracts are "worth" more than one might think, in two ways. For SGX FIRST, the launch proves its ability to execute. For SGX in general, it's a much-needed boost – financial and psychological – after last year's MSCI losses.I will be publishing a series of on various ESG investment products, starting with derivatives (very soon). That will provide additional detail.

SGX FIRST Launches ESG Futures Putting It in the Company of ESG Derivatives Leaders ICE and Eurex

In <a href="https://www.smartkarma.com/insights/asia-exchanges-lead-in-esg-hkex-jpx-sgx" target="_blank" data-smartkarma-citation="insights:34447" rel="noopener">Asia Exchanges Lead in ESG: HKEX, JPX, SGX</a>, I assessed and benchmarked the world's financial exchanges on their contributions to sustainable/ESG investing and finance, and general Corporate Social Responsibility performance. Much has transpired, so it is time for an update... of sorts."Of sorts," because this version focuses exclusively on listed Asian exchange stocks, employs a more robust assessment/benchmarking model, and incorporates additional (previously-unavailable) data points. In short, it is more targeted, substantive, and actionable. Less breadth, more depth.The first analysis was based more on aspirations than on accomplishments because few exchanges had accomplished anything at that point. This version reflects real-world progress, and the results are significantly more insightful. The "downside," however, is information-overload.Therefore, this Insight addresses methodology and overall results (scores, rankings), and I will dive deeper into specific subjects (e.g., ESG derivatives) and exchanges separately. The Asian exchanges herein are: <a href="https://www.smartkarma.com/entities/asx-ltd" target="_blank" data-smartkarma-citation="entities:552:1" rel="noopener">ASX Limited (ASX AU)</a>, <a href="https://www.smartkarma.com/entities/bombay-stock-exchange" target="_blank" data-smartkarma-citation="entities:23694:1" rel="noopener">BSE Limited (BSE IN)</a>, <a href="https://www.smartkarma.com/entities/bursa-malaysia-bhd" target="_blank" data-smartkarma-citation="entities:17112:1" rel="noopener">Bursa Malaysia (BURSA MK)</a>, <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>, <a href="https://www.smartkarma.com/entities/japan-exchange-group-inc" target="_blank" data-smartkarma-citation="entities:11266:1" rel="noopener">Japan Exchange Group (8697 JP)</a>, <a href="https://www.smartkarma.com/entities/nzx-ltd" target="_blank" data-smartkarma-citation="entities:10696:1" rel="noopener">NZX Limited (NZX NZ)</a>, and <a href="https://www.smartkarma.com/entities/singapore-exchange-ltd" target="_blank" data-smartkarma-citation="entities:1047:1" rel="noopener">Singapore Exchange (SGX SP)</a>.

In Asia Exchanges Lead in ESG: HKEX, JPX, SGX, I assessed and benchmarked the world's financial exchanges on their contributions to sustainable/ESG investing and finance, and general Corporate Social Responsibility performance. Much has transpired, so it is time for an update... of sorts."Of sorts," because this version focuses exclusively on listed Asian exchange stocks, employs a more robust assessment/benchmarking model, and incorporates additional (previously-unavailable) data points. In short, it is more targeted, substantive, and actionable. Less breadth, more depth.The first analysis was based more on aspirations than on accomplishments because few exchanges had accomplished anything at that point. This version reflects real-world progress, and the results are significantly more insightful. The "downside," however, is information-overload.Therefore, this Insight addresses methodology and overall results (scores, rankings), and I will dive deeper into specific subjects (e.g., ESG derivatives) and exchanges separately. The Asian exchanges herein are: ASX Limited (ASX AU), BSE Limited (BSE IN), Bursa Malaysia (BURSA MK), HKEX (388 HK), Japan Exchange Group (8697 JP), NZX Limited (NZX NZ), and Singapore Exchange (SGX SP).

Sustainable Stock Exchanges: SGX, HKEX Are Shaping the Future of Sustainable/ESG Investing in Asia

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)

SPACs Coming to Hong Kong ? We Don't Think So

Hong Kong market unlikely adopts the backdoor listings and shell activities such as SPACs. In contrast, regulator intends to simplify listing...

Roger Xie

JD Logistics: More Solution Than Problem in a Problematic ESG Space

JD Logistics is more "solution" than "problem" in what is a problematic space for the environment; a clear leader in the "greening" and...

Kyle Rudden

Carbon Footprint of Freight Transportation and Logistics and Other ESG Issues

The carbon footprint of global freight and logistics is large, growing, and a source of ESG risk for investors. Fortunately, firms like JD...

Kyle Rudden

SGX FIRST Launches ESG Futures Putting It in the Company of ESG Derivatives Leaders ICE and Eurex

SGX's lauch of ESG futures is a big deal. It proves SGX FIRST's ability to execute, and softens the pain of MSCI losses.

Kyle Rudden

Sustainable Stock Exchanges: SGX, HKEX Are Shaping the Future of Sustainable/ESG Investing in Asia

Sustainability is imperative, capital is its cornerstone, and markets move capital. Exchanges, at that vital intersection, are agents of progress...

Kyle Rudden

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)