Even before the implementation of the scheme connecting the stock exchanges of Hong Kong and Shenzhen, investors are already salivating on the prospect of a brisk business that the link will offer to the former British colony.
Event-driven hedge fund Quantum Enhanced Fund and two others invested 3.9 billion Hong Kong dollars ($500 million) into Kingston Financial Services Group, which expects its business to flourish further as the Chinese government moves to further link its stock exchanges with the city.
In a statement, Kingston said Quantum, alongside private equity company PAG Asia Capital, Wanda Investment, and Active Era are among those who will buy its private share placement of more than 1.76 billion shares.
Quantum will account for $200 million of the total, while Wanda, Active Era and PAG will each buy $100 million, Hong Kong-based Kingston said in a disclosure to the Hong Kong stock exchange.
Kingston said it will use the proceeds to expand its financial services business in the former British colony as it expects volume of transactions to rise in the Hong Kong bourse following the initiative that linked the city’s stock exchange with Shanghai, and another similar scheme this time with Shenzhen.
Kingston is principally engaged in securities brokerage, underwriting and placements, margin as well as IPO financing.
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