The Hha Exchange has seen its stock price fall by more than 1,000% in the last month, falling to less than $2.50 per share, and that’s before a potential collapse in its foreign exchange reserves, which could force it to halt trading in some of its assets.
But the HHA exchange has not lost its hold on the global market.
Hha’s market capitalization is $14.7 billion, according to FactSet data.
And the exchange is one of the most profitable in the world, with a net income of more than $5.6 billion for the quarter ending December 31, according the data provider.
Haha is also a key source of revenue for the Hana Group, a Hong Kong-based company that manages assets that hedge the risk that investors could lose money on a given day, said the group’s chief executive officer, Hongwan Cheung-ming.
Cheung-mei said that despite the exchange’s problems, the company will continue its efforts to diversify its business.
It is expected to pay out about $4 billion in profits for the next fiscal year, he said.
Hha’s problems also have implications for investors in other countries.
The HHA has been struggling with high exchange rates and an increase in the cost of its products, and the exchange has been selling shares on a basis that is not market-based.
The exchange, which has more than 4,000 employees, is trying to recover from these issues, said Cheung, adding that the company is still committed to the exchange.
The HHA Exchange, the world’s largest exchange for foreign exchange, has been operating at a loss for years, and its stock has lost more than 25% since the end of March.
Its shares have lost more $100 billion since the beginning of the year, according a Reuters report.
HHA’s share price fell by more the $4.70 it was trading on Jan. 12, but it is up $8.60 since then, according data compiled by Bloomberg.
The exchange is a key player in the global hedge fund market, helping clients hedge their exposure to volatile currencies such as the dollar and euro, and in exchange, hedge funds can receive returns on assets that trade at a discount to their market value.
Haha has been unable to keep up with the increasing cost of currency hedging.
The group reported a loss of $5 billion for its first quarter, a decrease of more $40 billion in the same period a year ago, according FactSet.
The losses come despite a continued positive trend in currency hedges, according DataFacts, a data analytics firm.HHA said it expects its losses in the second quarter to be similar to those of the first, and it will report quarterly earnings in April.
The company’s stock has risen by more in the past six months than it has in the previous five, and a loss could result in its shares losing as much as $2,500.
Hana Group Chief Executive Officer Hongwan is confident that the exchange will recover, saying it will continue to work hard to diversified its business to attract new investors and stay competitive in the market.
He added that the group will continue with its investments in the Chinese e-commerce market.