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Daily analysis of the major talking points in the worlds of business and investing with a focus on implications for doing both in mainland China and its key financing hub - Hong Kong.
Biden has signed 33 orders in six days, placing a spotlight on climate change, immigration, US industry and human rights. Don’t expect any quick relief on trade restrictions with China, but relations with Xi Jinping will be warmer.
Biden has signed 33 orders in six days, placing a spotlight on climate change, immigration, US industry and human rights. Don’t expect any quick relief on trade restrictions with China, but relations with Xi Jinping will be warmer.
Once the US relinquishes its role as a major competitor in oil and gas markets, the market share battles of the first quarter of 2020 will be just a bad memory. Meanwhile, the spectre of Iranian hegemony in the Gulf will concentrate the minds of moderate Sunni Gulf rulers and could drive further alignment with Israel.
Once the US relinquishes its role as a major competitor in oil and gas markets, the market share battles of the first quarter of 2020 will be just a bad memory. Meanwhile, the spectre of Iranian hegemony in the Gulf will concentrate the minds of moderate Sunni Gulf rulers and could drive further alignment with Israel.
Globally, bond markets are not only underinvested in Chinese government bonds as compared to US Treasuries, but in the process are also forgoing the higher yields that they currently offer over US paper.
Globally, bond markets are not only underinvested in Chinese government bonds as compared to US Treasuries, but in the process are also forgoing the higher yields that they currently offer over US paper.
Several major Asian cities already benefit from mature decentralised business hubs, which provide modern buildings better suited to the post-Covid-19 leasing landscape. The longer restrictions remain, the clearer it is that most people miss office life.
Several major Asian cities already benefit from mature decentralised business hubs, which provide modern buildings better suited to the post-Covid-19 leasing landscape. The longer restrictions remain, the clearer it is that most people miss office life.
The success of New Zealand and Vietnam in containing the pandemic shows that the richest countries aren’t necessarily the best at managing a crisis. Amid shortcomings in governance, the private sector has, in many areas, risen to the occasion.
The success of New Zealand and Vietnam in containing the pandemic shows that the richest countries aren’t necessarily the best at managing a crisis. Amid shortcomings in governance, the private sector has, in many areas, risen to the occasion.
Singapore’s Temasek is one of several government funds to go beyond their traditional mandate and fight the pandemic. As Hong Kong prepares to launch its own Growth Portfolio, it needs to consider if there’s a larger firefighting role for public investors in a crisis.
Singapore’s Temasek is one of several government funds to go beyond their traditional mandate and fight the pandemic. As Hong Kong prepares to launch its own Growth Portfolio, it needs to consider if there’s a larger firefighting role for public investors in a crisis.
While the pandemic has increased demand for core assets – low-risk, low-return properties in liquid markets – the scope of core is broadening to include new asset categories, such as logistics, multifamily housing and data centres.
While the pandemic has increased demand for core assets – low-risk, low-return properties in liquid markets – the scope of core is broadening to include new asset categories, such as logistics, multifamily housing and data centres.
China should abandon any attempt to ‘divide and rule’ Europe, rein in its boastful diplomats, and seek out collaborative opportunities by taking minority, rather than controlling, positions.
China should abandon any attempt to ‘divide and rule’ Europe, rein in its boastful diplomats, and seek out collaborative opportunities by taking minority, rather than controlling, positions.
London’s office market faces the triple whammy of the coronavirus, Brexit and an economic slump. But Asian buyers are taking advantage of the silver linings: higher yields than in Europe and less competition from European buyers.
London’s office market faces the triple whammy of the coronavirus, Brexit and an economic slump. But Asian buyers are taking advantage of the silver linings: higher yields than in Europe and less competition from European buyers.
Boris Johnson is the hero of the hour for securing a better-than-expected EU trade deal but the role of his predecessor, Margaret Thatcher, in sowing the seeds of Brexit, must never be forgotten.
Boris Johnson is the hero of the hour for securing a better-than-expected EU trade deal but the role of his predecessor, Margaret Thatcher, in sowing the seeds of Brexit, must never be forgotten.
Developments in December reflect the tension between China’s moves towards allowing more foreign direct investment and concerns about national security. The two, however, are not mutually exclusive.
Developments in December reflect the tension between China’s moves towards allowing more foreign direct investment and concerns about national security. The two, however, are not mutually exclusive.
India and South Africa’s proposal to the WTO to exempt countries from enforcing some patent and IP rights is a targeted and proportionate response to the exceptional public health emergency that the world faces today.
India and South Africa’s proposal to the WTO to exempt countries from enforcing some patent and IP rights is a targeted and proportionate response to the exceptional public health emergency that the world faces today.
The government must invest in projects employing local labour, to turn around public sentiment. Hong Kong can’t afford to wait for the free market to act, or for tourists to return. Other priorities include housing and the Greater Bay Area.
The government must invest in projects employing local labour, to turn around public sentiment. Hong Kong can’t afford to wait for the free market to act, or for tourists to return. Other priorities include housing and the Greater Bay Area.
Given that Taiwan has benefited greatly from the Economic Cooperation Framework Agreement, particularly during Covid-19, termination of the trade pact would harm its economy and could endanger the island’s de facto independence.
Given that Taiwan has benefited greatly from the Economic Cooperation Framework Agreement, particularly during Covid-19, termination of the trade pact would harm its economy and could endanger the island’s de facto independence.
Concerns about the predatory use of technology, privacy intrusions and worsening social inequalities must be jointly addressed by all stakeholders in society – through sensible regulations, sound ethical norms and international collaboration.
Concerns about the predatory use of technology, privacy intrusions and worsening social inequalities must be jointly addressed by all stakeholders in society – through sensible regulations, sound ethical norms and international collaboration.
As long as variable interest entities continue to raise foreign capital to boost China’s economy, without threatening it or Beijing, there is no danger of a regulatory crackdown.
As long as variable interest entities continue to raise foreign capital to boost China’s economy, without threatening it or Beijing, there is no danger of a regulatory crackdown.
Trillions will be needed for China, Japan and South Korea, not to mention other Asian economies, to achieve carbon neutrality, Hong Kong’s financial sector has a critical role in helping to raise funds to make this green transition.
Trillions will be needed for China, Japan and South Korea, not to mention other Asian economies, to achieve carbon neutrality, Hong Kong’s financial sector has a critical role in helping to raise funds to make this green transition.
2021 will see the industry wrestle with the logistics of vaccinating 2 million seafarers. Governments and shipowners must also accelerate the move towards decarbonisation, agree on a framework to cut emissions, and prioritise the well-being of seafarers in any plan.
2021 will see the industry wrestle with the logistics of vaccinating 2 million seafarers. Governments and shipowners must also accelerate the move towards decarbonisation, agree on a framework to cut emissions, and prioritise the well-being of seafarers in any plan.
Digital technology is driving job displacement, but human ingenuity is driving job creation. The real problem is the new jobs may not appear as fast as the old ones disappear.
Digital technology is driving job displacement, but human ingenuity is driving job creation. The real problem is the new jobs may not appear as fast as the old ones disappear.
India’s call for economic self-reliance must go beyond nationalism in disguise. The push to go local appears a simplistic strategy for import substitution that is inconsistent with an outward-oriented trade policy.
India’s call for economic self-reliance must go beyond nationalism in disguise. The push to go local appears a simplistic strategy for import substitution that is inconsistent with an outward-oriented trade policy.
The Russian experience shows that China would benefit from joining the Paris Club of sovereign creditors, which maintains general rules for managing and restructuring sovereign debt.
The Russian experience shows that China would benefit from joining the Paris Club of sovereign creditors, which maintains general rules for managing and restructuring sovereign debt.
Working on the goal of carbon neutrality as a shared community project, one that sees the Hong Kong government truly engaging with voices from all parts of society, could be a powerful way of rebuilding trust in a divided city.
Working on the goal of carbon neutrality as a shared community project, one that sees the Hong Kong government truly engaging with voices from all parts of society, could be a powerful way of rebuilding trust in a divided city.
RCEP cements the region’s claim as the heart of the global production network, and could help its tech leaders – China, Japan and Korea – clinch the free trade agreement that has so far eluded them.
RCEP cements the region’s claim as the heart of the global production network, and could help its tech leaders – China, Japan and Korea – clinch the free trade agreement that has so far eluded them.
The launch last year of the country’s first real estate investment trust has helped increase market transparency and attract institutional investors, improvements which laid the foundation for the sector’s resilience amid the Covid-19 downturn.
The launch last year of the country’s first real estate investment trust has helped increase market transparency and attract institutional investors, improvements which laid the foundation for the sector’s resilience amid the Covid-19 downturn.
Biden is under pressure from Democratic Party progressives to adopt more stringent policies but he must avoid erecting so many barriers for less-developed countries that trade liberalisation is stymied.
Biden is under pressure from Democratic Party progressives to adopt more stringent policies but he must avoid erecting so many barriers for less-developed countries that trade liberalisation is stymied.
Heightened US-EU cooperation will be less about trying to contain others than repositioning the international order around the democratic values and open market rules that have enabled Asia and the global economy to prosper.
Heightened US-EU cooperation will be less about trying to contain others than repositioning the international order around the democratic values and open market rules that have enabled Asia and the global economy to prosper.
On the domestic front, the Chinese economy is not out of the woods and there is also the risk of disinflation. From a global perspective, loose monetary policy in the West would result in yuan appreciation were the PBOC to raise rates.
On the domestic front, the Chinese economy is not out of the woods and there is also the risk of disinflation. From a global perspective, loose monetary policy in the West would result in yuan appreciation were the PBOC to raise rates.
A distinct strain of pandemic capitalism is present in the United States as stock prices soar and the government and markets prioritise profits over people. Women, the working poor and minorities have experienced the brunt of the suffering while drug companies, tech firms and friends of the government have lined their pockets.
A distinct strain of pandemic capitalism is present in the United States as stock prices soar and the government and markets prioritise profits over people. Women, the working poor and minorities have experienced the brunt of the suffering while drug companies, tech firms and friends of the government have lined their pockets.
Yellen continued the mistaken policies of her predecessor, Ben Bernanke, driving interest rates lower to stimulate the economy and being too slow to raise them when she had the chance. Her interventionist economics are wrong for the times, which call for a banker or someone with more private-sector experience to stabilise the economy.
Yellen continued the mistaken policies of her predecessor, Ben Bernanke, driving interest rates lower to stimulate the economy and being too slow to raise them when she had the chance. Her interventionist economics are wrong for the times, which call for a banker or someone with more private-sector experience to stabilise the economy.