In today’s briefing:
- StubWorld: China Everbright (165 HK) Trading Wide
- [Futu Holdings (FUTU US) Company Update]: Futu App Removal Moves One Step to Final Resolution
StubWorld: China Everbright (165 HK) Trading Wide
- Fund manager China Everbright (165 HK)‘s implied stub and simple ratio (CEL / Everbright Securities Co (A) (601788 CH))) are at multi-year lows.
- Preceding my comments on China Everbright are the weekly setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
[Futu Holdings (FUTU US) Company Update]: Futu App Removal Moves One Step to Final Resolution
- Futu announced to remove the Futubull app in Mainland China in order to fully compliance with the CSRC rectification measures, while the existing paying clients’ trading activities are unimpacted.
- We think the movement is consistent with CSRC’s previous statements, and thus maintain our 5% user churn rate in 2023 unchanged.
- We think the full implementation of penalty fine on Futu is unfair. We expect a symbolic fine to be imposed on Futu in the future.
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