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Big freeze on China tech IPOs amid ‘reckless’ capital probe

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Hello, this is Mercedes from Singapore. This week’s news focuses on the visit of the Vice President of the United States. One of Kamala Harris’s primary goals was to address supply chain issues in the region. This is an issue highlighted in our view. But our big story this week had to be a big freeze on the Chinese list — many of them by tech companies. Elsewhere, see how Mastercard issues in India and the global chip shortage are curbing spending on 5G infrastructure in China. see you next week!

Big story

Call it a big freeze. Chinese regulators have frozen 42 initial public offerings on two mainland exchanges as investigations into financial services providers expand. According to Nikkei Asia..

Although the exact reason for the investigation was not clear, it is a Chinese leader 習近 Xiaoping “Reckless expansion of capital“. As part of this effort, anti-corruption observers in the country have warned thousands of officials of a “conflict of interest” in the hometown of Ant Group in Jack Ma.

Main development: The IPO service provider survey is led by the China Securities Regulatory Commission. Focuses on Beijing Tianyuan Law Office, Broker China Dragon Securities, CAREA Assets Appraisal, Zhongxingcai Guanghua Certified Accountant.

one Big victim One of the probes is BYD Semiconductor, China’s largest manufacturer of automotive microcontroller chips. Filing an application in May to list on Shenzhen’s ChiNext, a NASDAQ-style market supervised by the Shenzhen Stock Exchange, at least RMB 2.68 billion ($ 414 million) for automotive chip development ) Aimed to be procured.

Offshore IPOs have also been significantly suspended since Beijing Deployed controls About such a stake sale in July, with a $ 4.4 billion New York offer from food delivery company Didi Global. Data security is an important concern.

Conclusion: IPO crackdowns are part of a broader investigation into cozy trading, insider access, cartels, creative accounting, and other illnesses that perpetuate serious inequality. Beijing’s latest leitmotif, what it calls “common prosperity,” is not the very unequal society of today.

Top 10 Mercedes

  1. Softbank and Mossad?Yes i’m huge Japan The fund hired a former chief Israeli Intelligence agency as Investment adviser.. (Nikkei Asia)

  2. Further hurdles to Nvidia’s planned $ 54 billion acquisition of British chip designer Arm: England Competitive watchdog Detailed investigation.. (FT)

  3. Chinese Bitcoin mining ban created a blank that is only an international “minor” Too happy to meet Thanks to the promise of greater profits. (FT)

  4. Japanese Seven-Eleven, which has about 20,000 stores, has Amazon and other stores. Start of delivery service Whole country. (Nikkei Asia)

  5. We Settlement company saw India As the next big market.Now they are on Wrong side National planning — and government. (FT)

  6. Makoto Uchida of Nissan Motor Co., Ltd. Unlucky timing CEO in the history of the company Japan.. (Nikkei Asia)

  7. “For the first time in a few months, I’ve been heavily committed to global long-term investors coming to buy.”: Are buyers back for Chinese High-tech stocks? (FT)

  8. $ 29 billion postpaid contract settled Australian Growth situation As a technical center. However, not everyone is convinced that this country can become a listed global hub. (FT)

  9. We Netflix Be creative With partnerships that aim to remain the top streaming service in Japan.. (Nikkei Asia)

  10. Trends among tech companies from SuperAppli, We NS Southeast Asia, Not so supermarket. There is a risk of frustrating the user, FT’s Tim Bradshaw says.

It’s annoying to users that Big Tech hastily created a one-stop shop on the home screen of their mobile phones © Mitch Blunt

Our view

The spread of the Covid-19 Delta variant throughout Southeast Asia underscores the region’s importance to the technology supply chain.

In recent years, countries such as Malaysia, Vietnam and Thailand have climbed the manufacturing value chain. About 15% to 20% of the world’s components, such as resistors and capacitors used in smartphones and other products, are manufactured in this region.Some companies — — like that Apple — — We aim to shift much of our supply chain from China to Southeast Asia in order to diversify.

However, record numbers of coronavirus infections in Vietnam and Malaysia are now exacerbating the global shortage. Malaysia, a hub for packaging and testing of components used in everything from vehicles to smartphones, is unlikely to quickly regain full capacity due to the blockade. Ford Last week, it announced that it would temporarily suspend production of F-150 trucks at a plant due to a shortage of semiconductor-related parts caused by the outbreak in Malaysia.

Toyota Due to the infection in Vietnam, the supply of parts was restricted, and the assembly line was shut down at some factories in Japan from late July to early August. As #techAsia Revealed last week, Covid is also confusing Apple’s plans, Google, Amazon For example, shifting production from China to Vietnam. The low vaccination rates in the region and the possible blockades in the coming months will prolong the turmoil.

— Mercedes

Smart data

The column chart of the total figures of China Telecom, China Mobile, China Unicom and China Tower (RMB bn) shows the decrease in capital investment.

A global chip shortage is hampering China’s 5G deployment. Spending on 5G networks and other infrastructure China Telecom, China Unicom When China mobile And its joint venture China tower Fallen a quarter The first half of this year was previously identified as a peak for building new high-speed systems compared to the previous year. This decline reflects the shortage of microchips that impacted equipment availability and carriers’ efforts to reduce costs by sharing infrastructure.

Spotlight

When Young Liu took over from Terry Goo at Foxconn in Taiwan two years ago, he took over his mentor. Electric vehicle vision..

“I can make an iPhone, but why can’t I make an EV? This is a four-wheeled iPhone,” Gou said at an in-house meeting at the world’s largest contract electronics manufacturer. Gou’s 2014 vision wasn’t immediately successful, but it wasn’t abandoned. Foxconn is currently obsessed with new initiatives for electric vehicles.

Liu has pledged to equip 5% of the world’s electric vehicles with Foxconn’s designs, components, mechanical components, or software by 2025. The company has also announced plans to build factories in the United States and Thailand to assemble the entire electric vehicle and is looking for a place. To make a car in Europe as well.

This development is backed by a decline in profits from consumer electronics. Foxconn sales increased by just 0.3% last year and net profit has shrunk since 2017. Electric vehicles are essential for the company to raise its gross profit from its current 6% target to 10%. Optimistic views on electric car pushes pushed Foxconn’s share price to a four-year high in March, rising more than 15% from the beginning of the year.

If Foxconn’s electric vehicle ambitions stall again, the risk is high.

Trading art

BaiduChina’s leading search engine, shows that the bond market may be delighted despite the declining stock prices of Chinese tech stocks.

society Raise $ 1 Billion According to the two bankers involved in the transaction, a heavily oversubscribed bond sale due to a strong desire from investors raised $ 5 to $ 6 billion in orders. As another sign of strong demand, bond prices were lower than expected.

The issuance of dollar-denominated debt began with the Chinese authorities pursuing a large-scale 10-month campaign targeting the country’s largest tech company. Baidu shares are down one-third this year, but Hong Kong listed shares Alibaba It has fallen to its lowest level since the second listing of the e-commerce group in the city in 2019.

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Big freeze on China tech IPOs amid ‘reckless’ capital probe Source link Big freeze on China tech IPOs amid ‘reckless’ capital probe

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