Banks Said to Urge Hong Kong to Be More Flexible on Convertible Bonds and Stock Buybacks

Bloomberg06-14

(Bloomberg) -- Major investment banks are asking Hong Kong’s stock exchange to allow companies with a primary listing in the city to do share buybacks and convertible bond sales simultaneously, people...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBanks Said to Urge Hong Kong to Be More Flexible on Convertible Bonds and Stock Buybacks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-14 16:46 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/banks-said-urge-hong-kong-084621886.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>(Bloomberg) -- Major investment banks are asking Hong Kong’s stock exchange to allow companies with a primary listing in the city to do share buybacks and convertible bond sales simultaneously, people...</p>\n\n<a href=\"https://finance.yahoo.com/news/banks-said-urge-hong-kong-084621886.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4502","symbol_name":"阿里概念","start_time":0,"source_url":"https://finance.yahoo.com/news/banks-said-urge-hong-kong-084621886.html","article_id":"2443362543","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/GPzmOudjpDBlu1ehFmLm9Q--~B/aD0xMzMyO3c9MjAwMDthcHBpZD15dGFjaHlvbg--/https://media.zenfs.com/en/bloomberg_markets_842/ba35ce415aece95f90867a70553a9b1d"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2443362543","pubTimestamp":1718354781,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":" -- Major investment banks are asking Hong Kong’s stock exchange to allow companies with a primary listing in the city to do share buybacks and convertible bond sales simultaneously, people familiar with the matter said.WellsFargoFires Over a Dozen for ‘Simulation of Keyboard Activity’。Tesla Investors Back Musk’s $56 Billion Pay Deal, Texas Move. The request follows a flurry of high-profile issuances by Chinese technology companies including Alibaba Group Holding Ltd., JD.com and Trip.com, which raised billions of dollars in convertible bond sales and used some of the proceeds to repurchase their American depositary receipts. They could do that as their main listings are in the US. In Hong Kong it wouldn’t be possible.Hong Kong requires Extraordinary General Meeting approval for the kind of share buybacks that trio of tech companies did with the convertible bond proceeds, making it impossible to do such deals overnight, the people said.Banks and law firms have met with Hong Kong Exchan","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4502":"阿里概念","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK4504":"桥水持仓","LU1823568750.SGD":"Fidelity Global Technology A-ACC SGD","LU1267930227.SGD":"TEMPLETON GLOBAL BALANCED \"AS\" (SGD) ACC A","LU0072913022.USD":"UBS (LUX) EQUITY FUND -  GREATER CHINA \"P\" (USD) ACC","BK4548":"巴美列捷福持仓","LU0128525689.USD":"TEMPLETON GLOBAL BALANCED \"A\"(USD) ACC","LU0501845795.SGD":"瑞银大中华区股票基金P Acc SGD","BK4565":"NFT概念","LU0067412154.USD":"UBS (LUX) EQUITY FUND -  CHINA OPPORTUNITY \"P\" (USD) ACC","BK4503":"景林资产持仓","LU1105468828.SGD":"Allianz Total Return Asian Equity AM DIS H2-SGD","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","LU1048596156.SGD":"Blackrock Asian Growth Leaders A2 SGD-H","BK4554":"元宇宙及AR概念","LU0348814723.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"A\" (USD) INC  NC","LU0821914370.USD":"贝莱德亚洲成长领袖A2","BK4531":"中概回港概念","LU1688375341.USD":"贝莱德中国灵活股票基金","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","LU1046421795.USD":"富达环球科技A-ACC","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4575":"芯片概念","BK4558":"双十一","BK4587":"ChatGPT概念","LU0918141887.USD":"安联亚洲实际收益股票基金","LU0651946864.USD":"贝莱德新兴市场股票收益A2","BK4524":"宅经济概念","LU1880383366.USD":"东方汇理中国股票基金 A2 (C)","BK4220":"综合零售","BK4535":"淡马锡持仓","LU1051768304.USD":"贝莱德新兴市场股票收益A6","BABA":"阿里巴巴","09988":"阿里巴巴-SW","BK4527":"明星科技股","LU0348816934.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT\" (USD)","BK4538":"云计算","BK4588":"碎股","LU1046422090.SGD":"Fidelity Pacific A-SGD","LU0251143458.SGD":"Fidelity Emerging Markets A-SGD","BK4579":"人工智能","BK4526":"热门中概股","LU1515016050.SGD":"Blackrock Emerging Markets Equity Income A6 SGD-H","LU0880133367.SGD":"UBS (LUX) EQUITY FUND CHINA OPPORTUNITY USD \"P\" (SGD) ACC","BK4122":"互联网与直销零售"},"translate_title":"银行称敦促香港在可转换债券和股票回购方面更加灵活","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BABA":0.9,"09988":0.6},"content_text":"(Bloomberg) -- Major investment banks are asking Hong Kong’s stock exchange to allow companies with a primary listing in the city to do share buybacks and convertible bond sales simultaneously, people familiar with the matter said.\nMost Read from Bloomberg\n\nWells Fargo Fires Over a Dozen for ‘Simulation of Keyboard Activity’\nTesla Investors Back Musk’s $56 Billion Pay Deal, Texas Move\nApple to ‘Pay’ OpenAI for ChatGPT Through Distribution, Not Cash\nHunter Biden Was Convicted. His Dad’s Reaction Was Remarkable.\nTech Powers Stocks as Adobe Surges in Late Trading: Markets Wrap\n\nThe request follows a flurry of high-profile issuances by Chinese technology companies including Alibaba Group Holding Ltd., JD.com and Trip.com, which raised billions of dollars in convertible bond sales and used some of the proceeds to repurchase their American depositary receipts. They could do that as their main listings are in the US. In Hong Kong it wouldn’t be possible.\nHong Kong requires Extraordinary General Meeting approval for the kind of share buybacks that trio of tech companies did with the convertible bond proceeds, making it impossible to do such deals overnight, the people said.\nBanks and law firms have met with Hong Kong Exchanges & Clearing Ltd., the people said, asking not to be identified as the talks aren’t public. \nA representative for HKEX said the company cannot comment on any ongoing discussions, but it is always looking for ways to enhance competitiveness and efficiency of markets for issuers and investors.\nThe discussions come as authorities try to breathe life into Hong Kong’s listless financial markets, where major deals have largely dried up. The recent convertible bond offerings by the Chinese tech firms have at least been a rare bright spot for business — and fees — at the big investment banks. \nAlibaba’s convertible bond sale last month was a record dollar-denominated issuance by an Asian company. The tech giant said at the time it would use part of the $4.5 billion proceeds to repurchase 14.8 million ADRs, as well as to fund future buybacks. \nThe strategy enables companies to repurchase a large chunk of shares in one go, while minimizing the dilution that can occur if buyers of its bonds decide to convert them into shares. The concurrent repurchase also helps investors who are seeking to buy the convertible debt and sell the stock as a hedge against it.\nWhile US-traded Chinese tech firms have resorted to the instruments, many subsequently listed in Hong Kong and converted their listing status to dual primary, meaning they’d be unable to sell convertible bonds and buy back shares with the proceeds. \nConvertible arbitrage funds are the main target investor group for these placements, which are an inexpensive funding option for the large share buybacks carried out by Alibaba, JD.com and Trip.com, Bloomberg Intelligence analysts Cecilia Chan and Timothy Tan wrote in a June 11 note. \nHigh dollar yields and volatility, combined with low equity valuations, may encourage more Asian issuers to consider convertible bonds as a funding source, the BI analysts wrote, suggesting that Meituan could be next in line given the decline in the online shopping platform’s equity value. \n--With assistance from Kiuyan Wong.\nMost Read from Bloomberg Businessweek\n\nThe Rise and Fall of a $600 Million Strip-Mall Tycoon\nIsraeli Scientists Are Shunned by Universities Over the Gaza War\nGrieving Families Blame Panera’s Charged Lemonade for Leaving a Deadly Legacy\nThe World’s Most Online Male Gymnast Prepares for the Paris Olympics\nChina’s Economic Powerhouse Is Feeling the Brunt of Its Slowdown\n\n©2024 Bloomberg L.P.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.0","shortVersion":"4.24.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2443362543"}