China proposes stock stabilisation fund, J&T Global aims for Hong Kong IPO and Indonesian miner's IPO mints six billionaires
Welcome to the LinkedIn edition of Trending by Ashbury, which brings you the news that matters most on Asia, sustainability, technology and financial markets – in your feed, every Wednesday.?
This week, we’ve seen moves from regulators across the region aimed at supporting domestic markets and economies. Singapore’s central bank announced that it will be doubling monetary policy decisions to four times a year from 2024, while Chinese authorities are considering a stock market stabilisation fund to lift economic confidence and bolster domestic markets. In the US, authorities have further tightened controls on chip exports to China, preventing firms like Nvidia from exporting advanced, high-speed chips used in artificial intelligence.?
In capital markets, Indonesian issuers are again taking the headlines. J&T Global, an Indonesian logistics company, is planning its Hong Kong IPO with shares valued at HK$12 per share, aiming to raise $501 million, in a litmus test for investor appetite in Hong Kong.?PT Amman Mineral Internasional’s IPO, which we covered in an earlier edition of Trending as the world’s best performing IPO at the time, is revealed to have minted at least six new billionaires in Indonesia. The company's shares have risen 269% since they started trading in July 2023. ?
In ESG news, there are positive signs for the effectiveness of industry alliances as the Net Zero Asset Owner Alliance reported that financed emissions for its 86 members fell to 213.4 million tons of carbon dioxide equivalent in 2022, down 3.5% from 221.2 million tons in 2021.?
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?Singapore to double monetary policy statements from 2024?
The Monetary Authority of Singapore (MAS) will transition to releasing quarterly monetary policy decisions from 2024, moving away from the current biannual schedule, in response to global inflation concerns. This shift aims to enhance communication with the market. Singapore's central bank has primarily conducted monetary policy meetings in April and October but will now issue statements in January, April, July, and October. The MAS's focus remains on stabilizing inflation, and they have emphasized a medium-term approach to policy formulation. The Singaporean economy showed modest growth in the third quarter, with concerns about external demand, rising interest rates, and labor market conditions potentially impacting future growth.?
China proposes stock stabilisation fund to lift economic confidence?
China's financial authorities are considering the establishment of a stock market stabilisation fund, aiming to boost investor confidence in the face of economic fragility. The fund would invest in domestic equities through existing financial institutions and professionally managed funds, with government contributions matched by partner funds and institutions. Regulators have discussed this idea since 2015, but it has gained traction this year due to economic challenges such as the property market crisis and slumping foreign trade. While trade data has been showing some improvement, China's inflation metrics remain weak, raising concerns about deflation and the need for fiscal support to strengthen domestic demand.?
Courier J&T Global Seeks to Raise $501 Million in Hong Kong IPO?
Courier services provider J&T Global Express Ltd. is embarking on an initial public offering (IPO) in Hong Kong, aiming to raise approximately $501 million. The IPO is accepting orders for 326.6 million shares priced at HK$12 each until October 19, with the pricing scheduled for October 19 and the listing set for October 27. This IPO is poised to be Hong Kong's largest since ZJLD Group Inc.'s $676 million listing in April and will serve as a litmus test for investor interest in Hong Kong, which has seen new share sales decline by almost 80% compared to the previous year. Nine cornerstone investors, including Tencent Holdings, SF Express, and Temasek, have pledged to buy approximately $200 million worth of J&T Global shares. J&T Global Express, which commenced operations in Indonesia in 2015, will be closely monitored by rivals looking to access Hong Kong's IPO market, including Cainiao Smart Logistics Network and SF Holding Co.?
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Indonesia’s mining IPO vaults six shareholders to billionaire status?
The IPO of PT Amman Mineral Internasional, the owner of Indonesia's second-largest gold and copper mine, has minted at least six new billionaires. The company's shares have risen 269% since its public debut in July, despite global miners facing challenges from accelerating inflation and rising interest rates. One of the new billionaires is Amman Mineral's chairman, Agus Projosasmito, whose stake in the miner is worth $2.7 billion. Most of the new billionaires have links to Anthoni Salim, the tycoon behind one of Indonesia's largest conglomerates, Salim Group, and who also holds a slice of Amman Mineral, adding over $4 billion to his fortune. The wealth creation at Amman Mineral is considered unusual by Indonesian standards, where it's common for a family conglomerate or individual to have the main stake in a company.?
US tightens rules on AI chip sales to China in blow to Nvidia?
The US Commerce Department is updating and extending export controls on cutting-edge artificial intelligence (AI) chips, tightening restrictions to prevent companies like Nvidia from selling high-performance semiconductors to China. These rules, which originally came into effect in October 2022, aim to curb China's access to advanced chips critical for military use and AI development.?Chips capable of speeds exceeding 300 teraflops, or calculating 300 trillion operations per second, will be prohibited for sale to Chinese entities. Nvidia, AMD, and Intel, producers of graphics processing units used in training large AI models, will be affected. Nvidia, whose data centre chip revenues included up to 25% from China, saw its shares fall approximately 6% following the announcement, while AMD and Intel shares declined around 3%.?
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Emissions tied to asset owners’ financing activities fall for the first time?
The Net-Zero Asset Owner Alliance, a $9.5 trillion investor group that includes Allianz SE, Legal & General Plc, and the California Public Employees’ Retirement System, reported a 3.5% decline in total absolute financed greenhouse gas emissions for its 86 members in 2022. The emissions fell from 221.2 million tons of carbon dioxide equivalent to 213.4 million tons. While the decrease is relatively small in absolute terms, it's seen as a positive step by the alliance. The decline in emissions was mainly driven by the proactive efforts of pension funds and insurance companies, which played a significant role in persuading companies to develop transition plans and reduce their carbon footprints. The group aims to eliminate financed emissions by 2050.?
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