Welcome to your week in Asia.
Asia’s COVID-19 cases are skyrocketing, China is due to release inflation data, and South Korea will unveil its latest monetary policy. All of them will help shed light on the region’s economic situation at this uncertain time. The world’s largest semiconductor foundry, TSMC, will also host a earnings conference call, which is expected to provide new insight into the global chip crisis.
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Closure of the Evergrande RMB bondholders’ meeting
Hengda Real Estate Group, a unit of the debt-ridden Chinese real estate company Evergrande Group, closes a four-day online meeting for holders of a three-year yuan-dominated onshore bond issued in January 2020. The bonds will vote on whether to allow the company to postpone the date on which the put options become exercisable. They will also decide to postpone the next interest payment from Monday to six months later, July 8.
JPX announces that companies will be listed on the main market
Japan Exchange Group (JPX) is due to announce that companies will be listed on the main market as it reorganizes the current four markets into three: Prime, Standard and Growth. The new markets will debut on April 4.
To be listed on the main market, companies must adhere to stricter liquidity rules: market capitalization in tradable shares of at least 10 billion yen ($ 90 million), with a tradable equity ratio of 35 % or more. About 1,800 to 1,900 companies, or 90% of companies currently listed in the first section of the Tokyo Stock Exchange, are expected to be listed on the main market.
CNOOC, one of China’s top three state-owned oil conglomerates, is expected to announce its business strategy for the year. The event could provide an opportunity to hear from management on the status of the company’s “reunion listing” in Shanghai, after being kicked out of the New York market last fall. The United States sees the company as part of the Chinese military-industrial complex.
Hong Kong discusses copyright bill
The Hong Kong government is holding an online consultation with the public on changes to copyright law. The contentious bill was scrapped in 2016 after opposition politicians and internet users criticized the potential implications it would have for free speech. The current proposals are similar to the previous bill. They allow the use of protected content for the creation of parody, satire and commentary on current affairs.
The government is investigating whether a judicial mechanism for blocking sites is necessary and whether there should be rules to govern devices used to access unauthorized Internet content. Critics say the bill should allow unlimited exemptions for user-generated content.
Inflation data in China
Economists predict that China’s producer price index eased in December, due to lower prices for major commodities. This would continue a downtrend that began in November after the index hit a record high in October.
Company benefits: Infosys, Wipro, TCS
TSMC call for results
Taiwan Semiconductor Manufacturing Co., the world’s largest contract chip maker, is holding an earnings call for the October-December quarter. TSMC chips are used in all kinds of electronic devices, including consumer devices, home appliances, cars, and space technology. All of this makes the Taiwanese chipmaker a key barometer of the tech industry’s fortunes. TSMC is expected to provide its latest take on the current global semiconductor supply crisis.
Guangzhou R&F Bond Due
Investors in a $ 725 million offshore bond issued by Guangzhou R&F Properties, a mid-sized Chinese developer, will learn how – and even if – their money will be paid back. The company offered to either repay the principal with a 17% discount or pay 50% up front but extend the maturity of the remaining funds until July. However, R&F recently indicated that its cash reserve may not be sufficient to fund either proposal.
Company benefits: Fast Retailing, Largan
Another rate hike for South Korea?
The Bank of Korea is expected to raise its key rate to 1.25% from 1%, after rising by a quarter of a percentage point in November. The likely move reflects rising inflationary pressures. Economists say macroeconomic data supports looming central bank action. The COVID-19 situation is stabilizing, but political uncertainty is expected to increase sharply in February as the March 9 presidential election looms.
List of rare earth companies in Hong Kong
JL Mag Rare-Earth, a Jiangxi-based magnet maker, is listed in Hong Kong. The price will be between HK $ 33.8 and HK $ 40.3. This represents an 18-32% discount from Friday’s closing price of 40.06 yuan in Shenzhen, where it has been listed since September 2018. Even though Hong Kong’s listing is not considered as important according to the standards of the territory, JL Mag Rare-Earth is attracting interest because its products are used for products that are increasingly in demand, including electric vehicles, wind power generators and energy-efficient air conditioners.
Renewable energy assembly
The International Renewable Energy Agency holds its 12th assembly in Abu Dhabi, United Arab Emirates. Entitled “Energy Transition: From Commitments to Action”, the two-day event will bring together stakeholders from the public and private sectors to continue discussions on energy transition at the COP26 international climate conference in November.