Guangzhou R&F Properties Co., Ltd. (2777) Jumps 0.434% on Mar 3

March 3, 2018 - By Darrin Black

Shares of Guangzhou R&F Properties Co., Ltd. (HKG:2777) last traded at 18.52, representing a move of 0.434%, or 0.08 per share, on volume of 10.91 million shares. After opening the trading day at 18.18, shares of Guangzhou R&F Properties Co., Ltd. traded in a close range. Guangzhou R&F Properties Co., Ltd. currently has a total float of 3.22B shares and on average sees 8.72 million shares exchange hands each day. The stock now has a 52-week low of 10.76 and high of 23.85.

HSI: A Powerful Asian Economy Indicator

The Asian economy is rampantly growing and it is countries such as Singapore, Hong Kong, Japan, and China that are leading the whole Asian equity market. Singapore and Hong Kong, for example, have recently been named by CG Watch as the top two countries in Asia with the best corporate governance in 2016. These countries are home to two of the most influential stock exchanges in the world, the Singapore Exchange (SGX) and the Stock Exchange of Hong Kong (SEHK). Both are subjects of Guangzhou R&F Properties Co., Ltd. interest.

The SEHK

With a total market capitalization of HK$24.68 trillion and a listing of nearly 2,000 companies as of 2015, the SEHK is Asia’s third biggest stock exchange and the world’s sixth biggest stock exchange. It was established in 1891 with its benchmark index, the Hang Seng Index (HSI), being first published in 1969.

Since that time all companies, like Guangzhou R&F Properties Co., Ltd. want to see their names in SEHK lists. Regular trading on the SEHK starts at 9:30 a.m. and lasts until 4:00 p.m. Meanwhile, pre-market trading lasts for 30 minutes starting at 9:00 a.m.

The HSI measures the top 50 companies on the SEHK, representing more than half of its total market capitalization. Its foundation is the brainchild of Ho Sin Sang, Hang Seng Bank (HSB) Chairman; Lee Quo-wei, HSB Director; and Stanley Kwan, HSB Head of Research. Primarily, they had founded the HSI to serve as the Dow Jones Industrial Average (HSI) of Hong Kong.

The components of the HSI are classified into four sectors since January 1985. These sectors include Utilities, Materials, Financials, and Energy— the biggest sector.

For a company to be eligible as a component of the HSI, it must belong to both the top 90% of the total market capitalization of common shares and total turnover on the SEHK, respectively. It must also be listed on the SEHK at least 24 months prior to the review date. Exceptions apply to companies that exhibit compelling market capitalization and liquidity. The same goes for Guangzhou R&F Properties Co., Ltd. company. In such cases, companies can already be eligible as components even if they have just been listed on the SEHK for three months prior to the review date, which happens quarterly.

HSI Performance

The HSI had posted its all-time low of 58.61 in August 1967. In December 1993, it had first attained the 10,000 mark. In December 2006, it had first attained the 20,000 mark.

Before the Global Financial Crisis of 2008 broke out, the HSI had first attained the 30,000 mark in October 2007. As a result, the HSI had posted its all-time high of 31,638.22 during the same month. The massive gains during that time are highly attributed to investors flocking safe-haven equity markets such as that of Hong Kong in anticipation of the Global Financial Crisis of 2008.

A year after attaining its all-time high, the HSI had lost more than 67%, falling back to the 10,000 mark in October 2008. In July 2009, the HSI had slowly recouped, attaining the 20,000 mark once again. It was highly appreciated by Guangzhou R&F Properties Co., Ltd. and its investors.

With a rich history backing the success and potentials of the SEHK, it is a guarantee that investors will gain interesting returns from their investments in Hong Kong’s equity market.

More notable recent Guangzhou R&F Properties Co., Ltd. (HKG:2777) news were published by: Marketwatch.com which released: “Guangzhou R&F Properties Co. Ltd.” on August 14, 2009, also Reuters.com with their article: “China’s R&F Properties roars back into the spotlight on Wanda deals” published on August 26, 2017, Ft.com published: “Guangzhou R&F properties jumps 10% on Wanda hotel deal” on July 20, 2017. More interesting news about Guangzhou R&F Properties Co., Ltd. (HKG:2777) were released by: Bloomberg.com and their article: “Cheesegrater Owner, R&F Replace Wanda in London Land Deal” published on August 22, 2017 as well as Reuters.com‘s news article titled: “China’s Wanda sells interests in high-profile London property project” with publication date: January 17, 2018.

Guangzhou R&F Properties Co., Ltd., together with its subsidiaries, engages in the development and sale of residential and commercial properties primarily in the People's Republic of China, Malaysia, and Australia. The company has market cap of $59.68 billion. The firm also develops hotels, office buildings, shopping malls, and tourism projects in Beijing, Guangzhou, and other cities. It has a 7.94 P/E ratio. In addition, it is involved in the operation of hotels; and provides interior design, residential architecture design, gardening and virescence construction, property leasing, and property management and agency services.