10 January 2020

Finance & Property

  • The WeWork IPO fiasco has led to doubts about the prospects of other firms in the same industry, including China's Ucommune. Representational image: Bloomberg

    Ucommune finds US investment bank to work on IPO: report

    Jan 10, 2020 2:59pm
    Ucommune, a Beijing-based shared workspace provider, has tapped a little-known US investment bank to help launch its initial public offering, Reuters reports, citing people familiar with the matter. The move came after Citigroup and Credit Suisse...
  • The healthcare sector has underperformed in 2019, becoming the second worst performing sector in the S&P 500 Index, behind energy. Photo: Reuters

    Investment themes for 2020

    - Jan 10, 2020 10:38am
    As we enter 2020, markets have priced in a substantial amount of favorable news, including global central bank easing and quantitative easing, a potential bottoming in economic data and some thawing of geopolitical risks. However, the...
  • Sweden launched its negative rate plan almost six years ago and has now reversed it due to the financial risks that arose from such policy. Photo: Bloomberg

    Sweden ends its experiment of negative rates

    - Jan 3, 2020 10:18am
    Negative rates are the destruction of money, an economic aberration based on the mistakes of many central banks and some of their economists who start from a wrong diagnosis: the idea that economic agents do not...
  • Ant Financial said it has submitted an application to the Monetary Authority of Singapore for a digital wholesale banking license. Photo: Reuters

    Ant Financial applies for Singapore digital banking license

    Jan 3, 2020 8:06am
    China’s Ant Financial, an affiliate of e-commerce giant Alibaba Group Holdings, has joined the race for a digital banking licence in Singapore, Reuters reports, citing a company statement. The Monetary Authority of Singapore (MAS) has said...
  • Stock Connect, which began operating last year, was seen as a major step by China to open up its capital markets as well as linking them globally. Photo: AFP

    China halts British stock link over political tensions: report

    Jan 2, 2020 4:03pm
    China has temporarily blocked planned cross-border listings between the Shanghai and London stock exchanges because of political tensions with Britain, five sources told Reuters. Suspending the Shanghai-London Stock Connect scheme casts a shadow over the future...
  • Employees work on the production line at a TV factory in Shenzhen. The credit impulse in China’s economy is expected to rise further, helping drive an improvement in the global business cycle. Photo: Reuters

    Emerging market outlook for 2020

    - Dec 31, 2019 8:00am
    It has been a turbulent year for financial markets in the emerging world. Not only did investors have to contend with a sharp slowdown in China’s economy in the first half of the year that spilled...
  • Singtel aims to bag a digital full banking license in Singapore through a joint venture with ride-hailing firm Grab. Photo: Bloomberg

    Singtel, Grab to partner for Singapore digital banking license

    Dec 30, 2019 10:12am
    Singapore Telecommunications (Singtel) is partnering with ride-hailing firm Grab Holdings to apply for a digital full banking license in Singapore. The firms said in a joint statement on Monday that they will establish a consortium, with...
  • China's central bank has ordered financial institutions to use a new benchmark for floating rate loans from Jan 1. Photo: Reuters

    China to switch benchmark for floating-rate loans

    Dec 30, 2019 9:58am
    China’s central bank will use the loan prime rate (LPR) as a new benchmark for pricing existing floating-rate loans, a move that could help lower borrowing costs and underpin economic growth, Reuters reports. Starting on Jan....
  • A Chinese regulator has noted that some banks in villages and townships have deviated from their original mission of serving rural and smaller firms. Photo: Reuters

    China tightens rules for smaller banks in villages, towns

    Dec 27, 2019 9:48am
    China’s banking and insurance regulator has tightened the operating rules for smaller banks in villages and towns as part of efforts to reduce financial risks caused by mismanagement, Reuters reports. “A few banks in villages and...
  • Tesla has secured new financing from Chinese banks as the company sets up a factory in Shanghai. Photo: Reuters

    Tesla gets US$1.29 bln loan from China banks for Shanghai plant

    Dec 27, 2019 9:28am
    US electric-car maker Tesla has entered into agreements with lenders in China for a secured term loan facility of up to 9 billion yuan (US$1.29 billion), Reuters reports, citing a regulatory filing on Thursday. The company...
  • Volatility diminishes the rate at which an investment grows over the long term and has a negative relative impact on portfolio returns. Photo: Reuters

    Why understanding and managing volatility drain is important

    - Dec 23, 2019 11:18am
    Managing risk is a key consideration for investors in Asia today. It is important not just because of potential future market declines, but also because volatility diminishes the rate at which an investment grows over the...
  • Mercato Capita has reportedly begun telling investors of its decision to return outside capital. Photo: Bloomberg

    Activist hedge fund Marcato Capital to shut down: report

    Dec 23, 2019 8:57am
    Activist hedge fund Marcato Capital Management, backed by Blackstone Group and billionaire William Ackman, is shutting down as assets have shriveled after two years of poor returns, Reuters reports, citing sources. Richard McGuire, the firm’s founder...
  • China wants to support domestic brokerages such as Citic Securities as it further opens up the financial sector to foreign firms. Photo: Reuters

    China wants its brokerages to become bigger and better

    - Dec 20, 2019 12:03pm
    China’s securities regulator for the first time voiced its intention to help create a few mega brokerages, and this might have a lot to do with the trade pact with the United States. China has reached...
  • The judges accepted airbnb's arguments that it is an online platform and not a property agent. Photo: Reuters

    Airbnb wins fight to remain exempt from European property rules

    Dec 20, 2019 8:39am
    US home-sharing site Airbnb won its battle to remain exempt from onerous European property regulations as the EU’s top court ruled it was an online platform and not a property agent, Reuters reports. The case came...
  • Goldman Sachs said settlement talks are ongoing and it continues to cooperate with regulators. Photo: Reuters

    Goldman Sachs may pay US$2 billion to settle 1MDB probes: report

    Dec 20, 2019 8:36am
    Goldman Sachs Group Inc. is in talks with the US government and a state regulator to possibly pay up to US$2 billion and admit guilt to resolve investigations into its role in the 1MDB Malaysian corruption...
  • The US SEC, under the chairmanship of Jay Clayton, is taking steps to enable more investors to access the private markets. Photo: Reuters

    SEC wants more investors to access private companies

    Dec 19, 2019 9:28am
    The US Securities and Exchange Commission on Wednesday proposed changes to its decades-old definition of a professional investor in order to allow more Americans to buy shares in private companies, Reuters reports. The agency hopes the...
  • JPMorgan said the joint venture’s services will include brokerage, investment advisory, underwriting and sponsorship. Photo: HKEJ

    JPMorgan wins nod for majority-owned securities JV in China

    Dec 19, 2019 7:35am
    JPMorgan said it has received the final approval from Chinese regulators to set up a majority-owned securities venture in the country, Reuters reports. The joint venture’s services will include brokerage, investment advisory, underwriting and sponsorship, the...
  • WeWork said the new credit facility is in the process of syndication and is expected to be available in January. Photo: Reuters

    WeWork arranges US$1.75 billion credit line with Goldman Sachs

    Dec 18, 2019 8:39am
    Shared workplace operator WeWork said it has arranged a US$1.75 billion letter of credit with Goldman Sachs that is in the process of being syndicated and whose funds are expected to be available in January, Reuters...
  • "Political tensions pose risks, given Hong Kong’s position as a major financial center,” the Bank of England report said. Photo: Reuters

    Bank of England says US$5 billion fled HK amid unrest

    Dec 17, 2019 1:35pm
    The Bank of England said the unrest in Hong Kong has led to as much as US$5 billion of capital outflow from investment funds in the Asian financial hub since April, Reuters reports. The flight of...
  • Lenovo founder Liu Chuanzhi is set to retire this week for the third time in his career. Photo: HKEJ

    When should one call it quits?

    - Dec 17, 2019 11:09am
    There appears to be a huge generational divide when it comes to work. Take the case of Lenovo (00992.HK) founder?Liu Chuanzhi, 75, who is set to retire this week for the third time in his career....