Message from Coach
On this week’s market summary:
📍1. Digital finance behemoth Ant Group is set to raise about US$34.5 billion from its initial public offering in Hong Kong and Shanghai, paving the way for a record-breaking deal and a valuation topping the world’s biggest bank, JP Morgan Chase. The most valuable unicorn on the planet is likely to make its hotly anticipated debut on Shanghai’s Nasdaq-styled Star Market and Hong Kong’s stock market on November 5, two days after the US election. Hangzhou-headquartered Ant priced its 1.67 billion A shares at 68.80 yuan (US$10.27) and the Hong Kong stock at HK$80 (US$10.32) apiece.
📍2. Credit Suisse said it would renew dividend payments and begin a buyback programme in the coming months, becoming the latest bank to signal it could withstand a pandemic that is gathering pace in Europe and the US. The decision to renew payouts came despite Credit Suisse reporting a 38 per cent drop in third-quarter net income to SFr546m, hit by what the bank said was a range of exceptional charges. Overall revenues for the quarter fell 2 per cent to SFr5.2bn. However, chief executive Thomas Gottstein insisted that excluding exceptional items, the underlying performance across the bank’s main divisions had been healthy.
📍3. Banks are pulling back from lending to European businesses and households as they braced themselves for a rise in bad loans due to the economic impact of the pandemic, a European Central Bank survey has shown. The ECB’s quarterly survey of banks found “a tightening of credit standards on loans to firms in the third quarter of 2020 indicating credit risk considerations due to the coronavirus pandemic”. Banks told the ECB they expected “credit standards for enterprises to tighten further, reflecting concerns around the recovery as some sectors remain vulnerable as well as uncertainties around the prolongation of fiscal support measures”.
📍4. Hong Kong stocks fell to a one-week low, joining a sharp global equity sell-off prompted by concerns over rising coronavirus infections and the US election outcome. China stocks defied the gloom with bright earnings scorecard. The Hang Seng Index slumped by as much as 1.8 per cent in early trading before trimming the decline to 0.5 per cent at 24,586.60 at the close. Gains in some technology stocks helped pare the losses. The Shanghai Composite Index was little changed at 3,272.73, after earlier tumbling as much as 1.2 per cent. The Shenzhen Component Index rose 1 per cent, and the CSI 300, which tracks the largest companies in Shanghai and Shenzhen, increased 0.8 per cent.
One of the must-ask interview questions for banking and finance is: “Have you read any news recently?”, with the follow-up questions: “How would you link this news to the market and what investment suggestions would you give to your clients based on this news?”
Showing your market sense and ability to provide feasible investment ideas would help to differentiate you from other candidates. Therefore, apart from the weekly news update / investment insights, we have also generated this Weekly Market Summary for you to have a quick understanding of the market development and tips to answer some hot discussion topics.
Take a look of the summary and WhatsApp us in the group if you have questions.