Some attention being paid to a.....>

HONG KONG STOCKS: Some attention being paid to a report in the Financial Times

that Alibaba's finance unit Ant Financial has revived plans for an IPO after

putting off the idea around a year ago.

- According to the report, lawyers and bankers see "a dual mainland and Hong

Kong listing as the most likely outcome". With Ant Financial seen valued as high

as $140bln, even a small offering could be one of the largest IPOs to hit Hong

Kong exchanges in recent history.

- In recent months, Hong Kong IPOs can have outsized impacts on the HKD via

interbank borrowing rates. On several occasions last year, HIBOR rates rose

sharply as markets anticipated cash demand in Hong Kong ahead of the IPOs for

both AB InBev (circa $5bln in September) and Alibaba (circa $15bln in November).

- As such, it's likely a sizeable IPO from Ant Financial in Hong Kong would have

a similar impact and apply upward pressure to front-end HIBOR rates, thereby

tightening liquidity, strengthening the HKD and blowing out HKD forward rates.