Daily must-reads from the world’s most dynamic region
November 4, 2020
After China's shock suspension of Ant Financial's Shanghai IPO listing, the company says its capital-raising plans have been put back by six months. Also, investors hold their breath as the US presidential election remains on a knife-edge and Bytedance buys a rare earth processing company as prices surge.
01 Ant IPO 'set back by six months'
Ant Group's initial public offering is “conservatively estimated” to have been set back by at least six months by China's surprise decision to scrap the mega sale, executive chairman Jing Xiandong said.
Financial markets fluctuated violently as US election results poured in but with no clear winner in sight more volatility is expected. However, US Treasuries and the dollar rallied amid the fading expectation of a 'Blue Wave', which means lower chances of massive fiscal spending in 2021.
In a divided-power scenario or a contested outcome, the rising volatility should push appetite for the US dollar higher in the short term, while expectations for higher deficit should recede sharply. Investors’ focus should shift back to the Covid-19 situation in Europe and its impact on growth.
07 Xi's new China sketch
Xi Jinping said China would emerge from its latest five-year economic plan confab with a different development model. The key measures outlined are structural reforms of the state-run economy, strengthening the nation’s markets and increased supervision of state-owned assets. Xi also outlined a "forest chief system" to monitor environmental issues.
Bytedance, the parent company of Chinese social media app TikTok, has bought a rare earths processing company as the tech firm seeks to secure a stable supply of the “hot” commodity at a time of surging prices.