Halister News

(Bloomberg) -- Hong Kong Monetary Authority may finish some of the investigations before a visit from the Financial Action Task Force next year, says Meena Datwani, HKMA director of enforcement.

• Datwani, who didn’t name the banks, was speaking at Thomson Reuters Pan Asian Regulatory Summit
• NOTE: In July 2015, HKMA took first action against money laundering after gaining powers in 2012

To contact the reporter on this story: Benjamin Robertson in Hong Kong at brobertson29@bloomberg.net To contact the editors responsible for this story: Sam Mamudi at smamudi@bloomberg.net Russell Ward, Marcus Wright

(Bloomberg) -- Sands China Ltd.’s share price could be capped near term by potential loss of mass-market share and slower industry growth, Credit Suisse Group AG said as it cut the gaming company’s rating to neutral from outperform and lowered its PT to HK$40 from HK$43.50. 

• Co. is likely to underperform peers as market is currently more driven by high-end premium mass segment, and Sands China is more base mass-focused, analysts Kenneth Fong and Lok Kan Chan write in Oct. 11 note
• They still like Sands China longer term for its good earnings quality, with completion of the Hong Kong-Zhuhai- Macau bridge opening up more opportunities for convention business and mass traffic
• Galaxy Entertainment Group Ltd. to outperform as should have gained share in VIP and mass segment; strong relationship with junkets, opening of new junkets and new smoking premium mass tables have led to better performance
• Galaxy is Credit Suisse’s only outperformer in the sector; Sands China, MGM China Holdings Ltd., Wynn Macau Ltd. and SJM Holdings Ltd. all rated neutral
  • “While we remain constructive on the sector in the longer term, we suggest that investors wait for better entry opportunities”

To contact the reporter on this story: Will Davies in Hong Kong at wdavies13@bloomberg.net To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net Will Davies

--SORAYA PERMATASARI

(Bloomberg) -- Longer-run bullish trends for EM remain intact despite the global backdrop of stronger growth and higher interest rates in the U.S., Ashmore strategist Jan Dehn wrote in a note.

• Valuations, technicals and fundamentals likely to keep EM strong over next 4-5 years, Dehn says
• “We believe that the ongoing pullback from generally EM-supportive trends will be short-lived and shallow,” Dehn says. “Investors should therefore add into temporary weakness”

• Real yields are still high in EM due to declining inflation across local markets, meaning central banks still have room to cut rates
• Yields were "too high" from foreign selling of EM local currency bond yields in past few years
• Room to ease monetary policy in Latin America and other commodity-focused economies in EM
• Exceptions include Turkey, Venezuela and Argentina, which have high inflation
• US productivity a concern, as is rising US government debt

To contact the reporter on this story: Daniela Guzman in New York at dguzman26@bloomberg.net To contact the editors responsible for this story: Rita Nazareth at rnazareth@bloomberg.net Peter Millard

--Washington Newsroom (202) 624-1820