China signals more stimulus to come | Asia central banks diverge on rates | Hong Kong mulls move to T+1 | Nasdaq targets Japanese companies
China’s Finance Ministry signalled further fiscal stimulus this past weekend, with Finance Minister Lan Fo’an outlining potential support for local governments, state-owned banks, and consumers. But investors are still waiting for definite spending figures – which may come after budget discussions by the National People’s Congress.??
Southeast Asia’s central banks are showing divergent monetary policies in response to the US Federal Reserve’s recent rate cuts. Export-driven economies like Thailand and Malaysia are now expected to delay rate cuts until next year, while demand-driven nations such as Indonesia and the Philippines are moving to ease rates further.?
Hong Kong Exchanges and Clearing (HKEX) says it wants to have systems in place by the end of 2025 that would allow the market to switch to a one-day settlement cycle (T+1). Meanwhile, Nasdaq is shifting its attention to Japan as its flow of listings from Chinese candidates declines. Japanese startups in technology, fintech, and life sciences are expected to list on Nasdaq as early as next year. Additionally, Asia’s IPO market is seeing renewed activity outside China, with major deals in Japan and India pushing Asia-Pacific ex-China IPO volumes past $28 billion so far in 2024.?
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China’s finance minister says there is ‘large room’ for fiscal stimulus?
China’s Ministry of Finance is ramping up fiscal support for local governments, state-owned banks and consumers but has not yet given details of the size of the next stimulus package. Last weekend Finance Minister Lan Fo’an outlined policies aimed at easing local government debt, boosting state-owned bank capital, stabilising the real estate market and encouraging consumer spending – but without disclosing exact spending figures. Investors are waiting for more details, which may come after the National People’s Congress Standing Committee convenes later this month to discuss budget and bond approvals.?
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ASEAN central banks diverge on rates as domestic factors come to fore?
Southeast Asian interest rate paths are diverging following the US Federal Reserve’s rate cut last month. Export-reliant economies like Thailand and Malaysia are now expected to delay rate cuts until 2024 or later. In contrast, domestic demand-driven nations like Indonesia and the Philippines, which have already begun easing rates, are poised to cut further to boost growth amid weaker household spending. Central banks in Thailand, Indonesia, and the Philippines will announce their latest policies this week, with the Philippines expected to continue easing but Thailand to hold off because of structural challenges.?
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HKEX plans to be ready for T+1 by end of 2025?
Hong Kong Exchanges and Clearing (HKEX) plans to publish a white paper on cutting stock trading settlement from two days to one day (T+1), with the intention of being ready by the end of 2025, according to CEO Bonnie Chan. Reducing settlement to T+1 would bring the market in line with the US, which made the same move earlier in 2024, and also follows Hong Kong’s decision last year to cut IPO settlement times from five days to two days. HKEX will publish the white paper in the first half of 2025.??
Nasdaq targets Japanese IPOs as Chinese listings wane?
Nasdaq is expecting a flow of Japanese start-ups to list on its exchange as early as next year, driven by a new generation of entrepreneurs focused on global markets. Nasdaq Vice Chairman Bob McCooey noted growing interest from sectors like technology, fintech, and life sciences as startups shift from hardware to software innovations. While China previously dominated US listings from Asian companies, a geopolitical shift is leading to increased attention on Japan and Southeast Asia. Industry experts suggest that Japanese companies could follow this trend to enhance their international profiles.?
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Asia’s IPO bankers look beyond China slump with $6 billion week?
IPOs worth more than $6 billion are on the slate this week in Japan and India, highlighting these markets’ growing importance as China activity slows. Hyundai Motors India’s $3.3 billion offering could be the nation’s biggest IPO and Rigaku’s $730 million listing marks Japan’s biggest in years. Asia Pacific ex-China IPO volumes have now surpassed $28 billion for 2024. India’s political stability and market maturity are fuelling growth while Japan’s strong corporate performance and overseas investor interest provide momentum for new listings.?
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