Key News
Asian equities were mixed but mostly lower overnight as the US reported hotter-than-expected inflation in August.
Hong Kong saw very low volumes overnight as 31% of names saw no transaction volume. This has attracted the attention of Hong Kong’s government, which is now following the Mainland’s example and implementing stock market reforms. Those reforms were detailed in a 16-point report released on Friday. The most important are the reduction in transaction costs and extending trading hours. Analysts are saying that perhaps the most significant beneficiary will be Beijing’s new stock market, which was created to facilitate trading in small and medium-sized enterprises that had previously been listed over-the-counter (OTC).
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