Groundwork for bourse link ready

Hong Kong's Securities and Futures Commission (SFC) said on Wednesday it has completed preparatory work for a planned trading link with Shanghai's stock exchange. The SFC "has finalized all the regulatory arrangements required for the launch of the Stock Connect scheme and we hope it will be launched sooner rather than later," said SFC spokesman Jonathan Li. Hong Kong Exchanges and Clearing Ltd Chief Executive Officer Charles Li said on Monday that regulators had not signed off on the link and he had no idea when it will begin.

Longer futures trading hours

Hong Kong Exchange and Clearing Ltd said on Wednesday that, starting from Nov 3 this year, the close of its after-hours futures trading (AHFT) will be extended from 11 pm to 11:45 pm. In addition, the close of the AHFT clearing session will be extended from 11:45 pm to 12:30 am. The extension includes futures trading for Hang Seng Index futures, H-shares Index futures, Mini HSI futures, Mini HHI futures and Renminbi currency futures. Since the introduction of AHFT in April last year, more than 3.3 million contracts have been traded.

Evergrande to refinance bonds

Evergrande Real Estate Group Ltd - one of the mainland's major property developers with the industry's two biggest single dollar bonds offshore - is considering refinancing one of them that is due next year. The company must repay $1.35 billion of 13 percent notes in January. Moody's Investors Service cut its outlook on the company to negative from stable on Oct 9 on the grounds of the company's increased refinancing risk and investments in non-property businesses. The company, with more debt than equity, plans to sell five-year notes by late December to refinance the 13-percent notes, according to a CreditSights Inc report dated Tuesday and based on a meeting with the company.

Insurers pace stocks advance

Mainland-listed stocks traded in Hong Kong rose to their highest level in five weeks on Wednesday after the nation's biggest insurers reported a jump in profits and power producers surged on prospects of price reform. Hong Kong's Hang Seng China Enterprises Index rose 1.7 percent to 10,724.15 at the close. The Shanghai Composite Index climbed 1.5 percent, gaining for a second day. Mainland stocks staged a late-day rally on Tuesday on speculation the People's Bank of China pledges to reduce borrowing costs to boost the economy following targeted measures earlier this month.

China Daily - Bloomberg

(HK Edition 10/30/2014 page8)