Eric Landheer, SVP and Head of Issuer Marketing of Hong Kong Exchanges and Clearing discusses smaller companies being allowed to seek capital in Hong Kong, and says that they are currently quite active in Mongolia. He also says that he expects to continue to see a flow of listings on the Hong Kong market, particularly in the consumer goods sector.
Hedge funds and local investors have been getting increasingly pessimistic about Greater China stocks, with the short interest on the Hang Seng Index now near a one year high. But The Royal Bank of Scotland (RBS) is taking a contrarian view, saying it believes the MSCI-China Index could see a 40-80 percent upside through 2012.
When I first started warning about Chinese stocks that trade in the U.S. a year ago, the mantra was simple: Most were created through reverse mergers. The bigger question: Why did they wind up trading here rather than closer to home—in Hong Kong?
Hong Kong stocks have seen a steep slide in the last month, shedding nearly 6 percent, with a record amount of short-selling. according to one strategist. But he thinks this could actually be a positive sign.