City's trading firms to join LSE

The London Stock Exchange (LSE) said on Monday it has received regulatory approval from the Hong Kong Securities and Futures Commission to provide automated trading services in Hong Kong via Millennium Exchange - an electronic trading platform currently used and developed by the LSE, and Sola trading systems, the trading platform developed by Montreal Exchange. LSE membership will allow Hong Kong trading firms' direct access to Europe's most liquid and international markets, the UK bourse said. Hong Kong companies will be able to link up with the LSE's derivatives market which provides trading in derivative contracts in UK securities and global depositary receipts.

Prada shares dive to three-year low

Hong Kong-listed Prada SpA fell to the lowest level in more than three years after the luxury retailer reported first-quarter profit that trailed analysts' estimates as it struggled to reverse slumping sales to mainland shoppers. Prada shares dropped 4.9 percent to close at HK$37.8 in Hong Kong trading, the lowest level since February 2012. Net income in the three months through April plunged 44 percent to 58.7 million euros ($65.7 million), Prada said last Friday. The maker of $695 clogs and $860 wallets is opening fewer stores, shuttering some wholesale accounts and introducing more bags priced between 1,000 euros and 1,200 euros as it attempts to reignite demand amid a clampdown on corruption and extravagance on the mainland. Asia-Pacific markets, especially Hong Kong and Macao, haven't shown any clear signs of recovery compared with the final months of 2014, Prada said.

Fosun ready for overseas M&As

Shanghai Fosun Pharmaceutical Group Co Ltd plans to use acquisitions to expand overseas, and spend 5 billion yuan ($805 million) on developing drugs in the next five years. The Shanghai-based company is seeking to upend a market in which thousands of small manufacturers compete over low-cost generic drugs while foreign companies dominate on innovation. It has been the most active buyer in the mainland's healthcare industry, making 17 deals worth $1.6 billion since 2010, beating State-backed giants such as Sinopharm Group Co, according to Bloomberg data. Chairman Chen Qiyu said he hopes to increase Fosun's overseas revenue to as much as 40 percent of the total from 12 percent now within five years via acquisitions.

Homes prices rise 19% year-on-year

Residential-and-commercial property consultancy Knight Frank on Monday launched the Global House Price Index for the first quarter of 2015. Despite the cooling measures in place, Hong Kong leads the rankings and achieved a 19-percent increase year-on-year. The report said a lack of supply along with the popularity of smaller apartments due to affordability constraints is behind the acceleration in mainstream prices. Despite the credit tightening measures launched in February, mass residential prices gained another 3 percent in early June, compared with the end of February. Globally, property prices recorded their weakest annual growth for three years, rising by just 0.3 percent in the year to March 2015.

China Daily - Bloomberg

(HK Edition 06/16/2015 page9)