RHB Investment issues new call warrants over HK & China firms

KUALA LUMPUR: RHB Investment Bank Bhd, the investment banking arm of RHB Banking Group, has issued 10 new call warrants over some of the world’s biggest Hong Kong and China companies.

They include Tencent Holdings, Geely Automobile, CK Hutchison, Bank of China and the recently-listed Xiaomi Corp.

The others are Industrial and Commercial Bank of China, Ping An Insurance, Sands China, Country Garden and China Mobile.

Tencent is currently the largest company listed on the Hong Kong Stock Exchange with a market capitalisation of over HK$2.5 trillion.

Its gaming arm, Tencent Games, is the world largest gaming company in terms of revenue, which brought in about US$18 billion in 2017.

Tencent is also well known for its mobile application called WeChat, also known as China’s “app for everything” because of its wide range of functions and platforms.

WeChat has just passed the billion-user milestone earlier this year.

Geely Automobile manufactures and sells passenger vehicles primarily in China.

As reported in Bloomberg, Geely surpassed its top 3 Japanese rivals to become the third-largest carmaker in China, reporting a 54 per cent jump in net income for the 6 months through June 2018. Its parent company, Zhejiang Geely Holdings is one of the world’s largest auto makers with an output of 1.24 million units last year.

“RHB Investment continuously strive to meet investors demand via product innovation. Last year, we have successfully listed 16 physical-settled call warrants over Malaysian stocks.

“This year, with the listing of these 10 new Hong Kong stock call warrants, it will provide the local investors an opportunity to gain exposure to the biggest Hong Kong companies without having to leave Bursa Malaysia,” said its chief executive officer Robert Huray.

“These Hong Kong stock warrants will allow the local investors to diversify their investment portfolio, gaining leverage exposure to large corporations like Tencent Holdings with just a small fraction of the underlying share price,” Huray added.

Currently RHB Investment is the only warrant issuer to list foreign stock warrants on Bursa Malaysia.

Working closely with Bursa, RHBIB is targeting to list up to 30 Hong Kong stock warrants by the end of 2018, adding more variety to the Malaysian stock market.

The 10 new Hong Kong call warrants will be listed and traded on Bursa on October 18.

Source: NST