In the 203 conference hall of the Peninsula Hotel, several parties argued for two and a half hours. Even though the Monetary Authority supported the merger of the three institutions, they still could not shake the stance of Li Fuzhao, Charter King, Feng Jingxi, Zheng Yutong, Li Jianhui, Li Zhaoji, Qiu Degen and others.
I originally thought that would be the end of it, but I didn't expect that the Xiangjiang United Transaction once again made a request that shocked Li Jianhui and others.
All listed companies on the three major exchanges will re-select the exchange, and the stock price of the exchange will remain unchanged without any cost.
Li Fuzhao immediately spoke out against it. If this is true, the Far East Exchange will suffer heavy losses, and Hang Lung, Cheung Kong, Henderson, Sun Hung Kai, New World Properties, Worldwide Shipping, Huaguang Shipping, Orient Overseas, and Wanbang Group will all leave.
Far East Exchange.
Even if Wheelock Holdings, Whampoa Holdings, and Kowloon Bus return to the Far East Exchange, they still cannot make up for the losses.
However, this proposal moved charter kings, Li Zhaoji, Zheng Yutong and others. The current strength of the Kowloon Exchange is far from being able to compete with the Hong Kong United Exchange and the Far East Exchange.
If this adjustment is achieved, then a large number of outstanding companies such as Wharf, Towngas, Global Shipping, Sun Hung Kai, and Henderson will come to the Kowloon Exchange. Even if they cannot surpass the Far East Exchange, the gap between the two parties will not be too big.
Because of their interests, these people obviously did not care about Li Fuzhao's opinions. They all agreed with this decision and proposed to complete this adjustment by the end of September. On October 1st, the Hang Seng Index, East Asia Index and Kowloon Index, as well as the major indexes, would be re-determined.
Component stocks.
The person in charge of the Hong Kong Monetary Authority smiled and said: "Mr. Li Fuzhao, Mr. Li Jianhui, Mr. Lei Juekkun, Mr. Feng Jingyao, as an old Chinese saying goes, a melon that is too strong is not sweet. I wonder if you have any different views on this?"
Li Jianhui and others knew that after Shen Bi put forward this opinion, they had no possibility of rejecting it. In addition to being detrimental to the Far East Exchange, this matter would be beneficial to other parties.
Although the Heung Kong United Exchange will have fewer companies, it will greatly weaken the strength of the Far East Exchange. The leading position of the Heung Kong United Exchange will not be shaken in the short term, leaving the Far East Exchange and the Kowloon Exchange to fight against each other.
"Since everyone thinks this is better, we at the Far East Exchange naturally have no objections. We also hope that the Hong Kong Monetary Authority can treat our Far East Exchange and listed companies from a fair and just standpoint in the future."
Seeing that Li Jianhui agreed with this decision, everyone present smiled. Regardless of the fact that the Li family of East Asia holds 40% of the shares, as long as Li Jianhui expresses his position, he can represent the final opinion of the Far East Exchange.
The Charter King and others were very happy. They did not expect such a surprise this time. Starting next month, their total market value in Kowloon will hopefully compete with the total market value in East Asia.
Although Li Jianhui's Wheelock Land, Whampoa Holdings, Wheelock Holdings, Lane Crawford, Whampoa Shipping, Hutchison Real Estate, Watsons, etc. all have market values of more than HK$5 billion, they are three major consortium listed companies on the Kowloon Stock Exchange.
The large number is enough to offset the market value of major listed companies in the Xinjian family.
…
That night, in the box of Xinhui Hotel, Li Fuzhao sighed: "I originally hoped that the Far East Exchange could catch up with the Hong Kong Exchange and become the largest exchange in Hong Kong. Judging from the current situation, I can only
I’m afraid it will be difficult to wait until this day.”
Don’t blame him for being pessimistic. The Heung Kong Exchange, the predecessor of the Heung Kong United Exchange, was already strong. Now that it has merged with the Gold and Silver Exchange and the Heung Kong Futures Exchange, its strength has increased significantly.
Not only has the strength of the Far East Exchange not increased this time, but it will have been greatly weakened. If it were not for the support of several major listed companies in the Xinjian Department, it would not even be able to compare with the Far East Exchange.
It is no exaggeration to say that once this merger is completed, the total market value of the top ten listed companies of the Xinjian Group will reach more than half of the market value of the Far East Exchange.
Li Jianhui said with a smile: "My second uncle is too worried. In the future, the Far East Exchange will focus on attracting high-tech industries, especially the semiconductor and computer hardware and software industries in Hong Kong, so that the Far East Exchange can become the Nasdaq of Asia."
This is just the key direction of the development of the Far East Exchange. It does not mean that the Far East Exchange does not accept the listing of other companies. Companies in other industries can also be listed here.
However, the Far East Exchange has specially created a new version, which is mainly for semiconductor, Internet, computer hardware and software companies to list. The listing conditions here are also different from the regulations of the Far East Exchange, and the threshold will be lower than the main board of the Far East Exchange.
To be listed on the main board of the Far East Exchange, although the establishment time of the company is not three years like that of the Hong Kong Exchange, although the Far East Exchange has a lower threshold, it is still at least one year, and the company's market value must reach more than 50 million, and the annual profit must exceed
One million Hong Kong dollars.
Such requirements have hindered countless companies that want to go public quickly, especially those in new technology industries. They have to invest a lot of money in research and development every year. It is normal to lose money in the first three to five years, and they simply cannot meet the listing threshold.
After the opening of the new version, it will provide a convenient channel for these companies to go public and raise funds, allowing some potential companies to obtain financing through the market in the early stage.
In addition, we will increase efforts to attract outstanding enterprises from Taiwan and Southeast Asia to be listed on the Far East Exchange, making the Far East Exchange the first choice for listing enterprises in Greater China and Southeast Asia.
Now the Far East Exchange has taken the lead, especially the agreement reached between the Far East Exchange and the Taipei Exchange, which allows companies listed on both sides to conduct secondary listings on the other side in the form of global depositary receipts.
Currently, common international practices are used to issue global depositary receipts to ensure that these companies can be successfully listed on other exchanges.
This is only the first step in the development of the Far East Exchange. In the future, it will also cooperate with the Kuala Lumpur Exchange, the Kingdom of Thailand Exchange, the London Exchange, the Singapore Exchange, the Bermuda Exchange, the Tokyo Exchange, the Korean Exchange, etc.
.
As for U.S. exchanges, forget about them. Even if you cooperate with them, you can only use American depositary receipts. You cannot list in the United States using global depositary receipts.
Due to their strength, Li Jianhui and others have never thought of issuing depositary receipts themselves. They mainly rely on the current system, mainly global depositary receipts. If it involves US listed companies willing to be listed on the Far East Exchange, they are also allowed to use
The secondary listing comes here in the form of American Depositary Receipts.
As for the current Far East Exchange, which will lose a large number of listed companies, it can only bear the pain for the time being. When outstanding enterprises from Baodao begin to come to the market next month, the strength of the Far East Exchange will increase significantly.
Moreover, some companies under Li Jianhui will be listed again, such as IKEA convenience stores, Tesco Electrical Appliances, Tesco Group, etc. Xinhui Hotel, a subsidiary of Xinhui Holdings, will also be listed on the Far East Exchange.
As for Haojiang Tourism and Entertainment Company, Xinhui Group has no plans to go public due to their own industrial reasons.
Xiangjiang Airlines, Jingyi Electrical Appliances, Hongyu Clothing, etc. are relatively short-lived and will have to wait a few years to go public.
Li Fuzhao knew that Li Jianhui had done his best to help the development of the Far East Exchange. He himself could not rely entirely on Li Jianhui. In the future, he would need to recruit more outstanding companies to come to the market and make the Far East Exchange bigger.