World Economy

HK May Lose Top Spot

HK May Lose Top SpotHK May Lose Top Spot

Hong Kong Exchanges and Clearing Ltd. is in danger of losing its rank as the world’s most valuable bourse operator as shares head for the longest losing streak on record, Bloomberg reported. HKEx tumbled for a ninth day Wednesday, falling as much as 12% before paring its drop to 4.9% as of 11:20 a.m. local time. At the day’s low, the exchange operator’s market value was HK$234.7 billion ($30.3 billion), trailing CME Group Inc.’s $32.1 billion at Tuesday’s close. The Hong Kong bourse was the best performer in the benchmark Hang Seng Index in the six months through June, vaulting to the top spot among global exchanges with a 59% rally. Optimism that HKEx would benefit from its trading link with Shanghai is now fading as the mainland’s world-beating equity advance turns into a $3.5 trillion rout. “That valuation isn’t sustainable,” said Jim Antos, an analyst at Mizuho Securities Asia Ltd. in Hong Kong. He cut his rating on the shares to underperform from purchase on Tuesday.