Hong Kong Financial Found-Up May-June 1992
Records Tumble for Stock Exchange
The Hong Kong Stock Exchange rewrote the record books for turnover during the most hectic trading period in the exchange's history in May. Total turnover was HK$91.86 billion (US$12 billion) - almost 50 per cent higher than the previous record of HK$61,88 billion (US$8 billion) in October 1987. Average daily turnover during the 21 trading days was HK$4.4 billion (US$564 million) - 70 per cent up on the April figure.
Huge Returns from HK Funds
Hong Kong equity funds have again held off competition around the world to give investors the best year-on-year return, according to figures from the Unit Trust Association. The funds gave a massive 70.2 per cent return, nearly treble the yield offered by their nearest rival, British gilts funds.
HSBC Bid Approved by Shareholders
Hongkong and Shanghai Banking Corporation Holdings (HSBC) received approval from its shareholders on June 9 to proceed with the acquisition of Britain's Midland Bank. HSBC's £3.9 billion (HK$55.14 billion, US$7.07 billion) revised and final offer is now open to Midland shareholders until June 25. Earlier on June 5, Lloyds Bank pulled out of the bidding war for Midland.
Jardine's Secondary Listing
Shareholders of Jardine Matheson Holdings have given their approval to the board of directors to seek a secondary listing on the Hong Kong Stock Exchange following a low-key special general meeting. A similar resolution had already been approved by shareholders of Jardine Strategic Holdings. As a result all Jardine's listed interests with the exception of Jardine International Motor Holdings, will now transform their status on the exchange to that of a secondary listing, with lead regulation from the London Stock Exchange. The Jardine group's listed interests make up some 13 per cent of the Hang Seng Index.
Bond Issue Over-Subscribed
The tender for the third issue of government bonds was over-subscribed 3.5 times. The average yield of 5.15 per cent reflected the down trend in short- term domestic rates. Applications for the bonds reached HK$2.23 billion (US$286 million) when the tenders opened and closed on 18 May.
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