Called Lim & Tan.
My broker said, it is possible but the procedure is quite complicated.
Have to go to CDP and the company to withdraw shares and get a paper certificate. After that, can approach them to transfer shares to their HK branch.
AND, there is a processing fee.
So, better sell here and buy later in HK market. That's his suggesion!
My friend has a margin account holding her China Animal shares. She found out :
a. She will decline the delisting offer and then she will receive a certificate for the HK shares of China Animal.
b. She will take the cert to her broker, pay S$32 to register the cert and get it converted to scripless.
c. In future, sell the scripless CAH shares through the broker's online account which allows for trading in HK stocks.
Quite simple and very affordable.
In future, CAH will be worth a lot more on the HK exchange where the PE is much higher and CAH will also be a stronger business. Just my friend's views.
a. I think she is right. I just realized that after take another look at the two forms received (one green and one white).
b. The S$32 is the mentioned fee. There might be slight difference between different brokers. My Lim&Tan remisier also told that I cannot lose the paper certificate in future before converting it to scripless.
I shares the same view as hers. Just recalled the sihuan pharm case.... But I may sell some to minimize risk.
Is there an arbitrage op? Not currently with both HK and SG shares trading at around 30 cents sgd equiv.
Can CAH rise higher after the delisting in SG? Well, the trailing PE is 20X, which is alreadyy quite rich / fair. The company's earnings will have to do strong jumps if the stock is to be re-rated higher.
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