The Asia Eight

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.

02 Asia Markets

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.

03 Foreign capital flows into China

Gary Dugan, chief executive at The Global CIO Office in Singapore, tells Asia Times Financial TV that the time is ripe for overseas capital to be allocated into China

04 IMHO

“It undermines investors' confidence in the nascent STAR market as well as the Hong Kong Stock Exchange, as the latter used to be more independent from Beijing's influence"

Xiaomeng Lu, a senior analyst of Eurasia Group's geo-technology practice, on the pulling of Ant’s China IPO

05 TikTok peers eye HK

Douyin and Kuaishou are hoping to be the latest Chinese tech firms to raise capital in Hong Kong as they seek to expand into the lucrative and growing e-commerce arena.

06 Trade of the Day

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.

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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.

08 Bytedance buys rare earth processor

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.