A glance at the financial scorecard of Shenzhen’s publicly listed companies in the most recent quarter shows an impressive performance: Across 393 companies, listed on six stock exchanges at home and abroad, revenues rose by 13.05%, profits by a whopping 33.08%, YoY.
Fintech Week is proving to be a global PR bonanza for Hong Kong. Local media have been buzzing for the past two days about Alipay’s decision to open its payment platform inside the Chinese mainland to foreigners, the announcement of which was clearly timed to coincide with the Hong Kong event. And Mu Changchun, the central bank’s whizzkid overseeing the imminent launch of the digital Renminbi, kept the momentum going yesterday by suggesting foreigners could use it, too.
As reported by SCMP, Mu said the central bank is working to
separate the virtual currency from the banking system. “Actually it could be
decoupled from traditional bank accounts,” he said during an event at Fintech
Week, which is being held at the AsiaWorld-Expo. “Thus, those who don’t have
bank accounts in China can still open a digital wallet and enjoy mobile payment
services in China.”
Shenzhen’s dominant financial services group, Ping An Insurance, beat expectations for the first half of the year, announcing yesterday its biggest jump in interim net profits in five years. The company’s stock rose in Hong Kong trading today, unsurprisingly. Continue reading Ping An beats expectations→
Ping An-Dapeng International Bio-Valley, a joint venture between Ping An Urban Tech and the Dapeng district government, has recently teamed up with the Kotler Marketing Corp., a consulting firm based in Washington, DC, to cooperate on building the incubator base as well as raising a startup fund for biotech innovation.
The world of finance is being shaken up in myriad ways. Companies like Hong Kong-based Velotrade are slotting into niches, such as accounts-receivable financing, and taking off. We spoke to the firm’s co-founder and chairman, Vittorio de Angelis, about how it all works.
Insurance funds have invested about RMB900 billion on infrastructure projects related to the development of the Greater Bay Area. According to data from the Guangdong Banking and Insurance Bureau, the steady investment flow from these funds, which typically have ROI horizons of 30 years, acts as a “stabilizer” for the region’s construction.
China Taiping, for example, has supported the construction of Baotou-Maoming Expressway, Chaozhou-Huizhou Expressway, Yunfu-Yangjiang Expressway, Lecang-Guangzhou Expressway and Nansha Bridge through debt schemes, raising a total of RMB5 billion. In addition, it assisted the government-backed Shenzhen Investment Holdings to acquire Hopewell Highway Infrastructure Ltd. for HK$1.4 billion.
Besides China Taiping, as of the end of Q1, the People’s Insurance Company Group (PICC) has invested RMB45 billion, Ping An Life Insurance close to RMB40 billion, and Ping An Property & Casualty Insurance RMB30 billion in the region. In 2017, Ping An Group and the provincial government jointly launched the “Guangdong Ping An Development Fund” with a target of RMB150 billion to invest in large-scale infrastructure projects in the Greater Bay Area including high-speed railways, inter-city railways and airports.
OneConnect, the financial technology unit of Shenzhen-based Ping An Insurance, has selected Goldman Sachs, JPMorgan and Morgan Stanley to work on its Hong Kong initial public offering (IPO) of up to US$1 billion with a targeted valuation of about US$8 billion, reports Reuters. Continue reading Ping An fintech unit aims for HK IPO→
Caixin Global has an interesting report out wrapping up how major investment banks are picking stocks worthy of consideration because of the Greater Bay Area masterplan unveiled recently by the State Council. Insurers such as Ping An, banks such as Bank of China (Hong Kong), and tech companies such as Tencent are among their top picks.
Ping An Insurance is headquartered in Shenzhen, listed on the Hong Kong stock exchange. It generates 18% of its premiums from Guangdong, the highest among its peers, according to DBS.
Both the Swiss-based UBS and the Singapore-based DBS picked Shenzhen-headquartered, Hong Kong-listed Tencent Holdings Ltd. DBS said it was because they believe favorable policies for fostering talent in the Greater Bay Area can increase the internet giant’s capacity for innovation.
In the property sector, UBS favored Guangzhou-based Times China Holding Ltd. and Shenzhen-based Logan Property, while DBS picked Hong Kong developer Yuexiu Property Co., China Resources Land Ltd., China Vanke Co., Guangzhou R&F Properties Co., Kerry Properties Ltd. and Shenzhen Investment Ltd.
DBS said Guangzhou-based automaker GAC Group and Shenzhen-based electric car maker BYD will get a boost as demand for automobiles is expected to rise with government investments into improving the GBA’s transportation network.
The region’s urbanization and infrastructure buildout will also boost cement producers China Resources Cement Holdings Ltd. and Anhui Conch Cement Co., and railway construction companies China Railway Construction Corp. and China Railway Group Ltd., DBS said.