China-Africa Forum, US-South Korean Defense Talks, Cloud Village IPO
Welcome to your week in Asia.
This week begins with Chinese President Xi Jinping’s online speech at the China-Africa Cooperation Forum, as tensions rise over Beijing’s investments in the mainland. Meanwhile, US Secretary of Defense Lloyd Austin arrives in Asia to meet with his South Korean counterpart Suh Wook.
On the corporate side, Want Want and Up Fintech Holdings will announce their results on Tuesday. Cloud Village, the main streaming rival of Chinese group Tencent Music Entertainment Group, is due to launch its first public offering in Hong Kong on Thursday.
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Forum on China-Africa Cooperation
Chinese President Xi Jinping will deliver an online speech at the China-Africa Cooperation Forum in Dakar, Senegal. The Beijing-led forum comes as Chinese investments in Africa face a growing backlash. It is seen by some in the region as burdening recipient countries with heavy debts and environmental problems.
Nissan’s long-term vision
Nissan will unveil its long-term vision for how it will promote carbon neutrality and sustainable growth. The automaker’s strategy should include plans to purchase electric vehicles and batteries.
Nikkei announced last week that Nissan is aiming for electric and hybrid models to account for half of its global auto sales by 2030. It plans to increase investment in technology by more than 30% over the next year. decade. Nissan wants to be carbon neutral by 2050 and make all cars sold new in major electric markets by the early 2030s.
Singapore-Malaysia taxiway opened
Singapore and Malaysia will launch a non-quarantine reciprocal traffic lane on Monday. This will allow fully vaccinated people to travel between Singapore Changi Airport and Kuala Lumpur International Airport on designated flights. This decision marks an important step for the economic recovery of the countries; the hour-long flights were one of the busiest international routes in the world before the pandemic. Border crossings without quarantine via a causeway between the city-state and the state of Johor in southern Malaysia will begin on the same day.
Vote on Grab’s SPAC agreement
Southeast Asian Unicorn Grab is getting closer to listing in the US as the special purpose acquisition company it plans to merge with will hold a special general meeting on Tuesday US time to vote on the agreement. Subject to shareholder approval, Grab could be listed on Nasdaq in early December. Grab’s listing would provide US investors with a new opportunity to invest in a region that has been under-represented in global stock markets.
Quarterly GDP of India
India releases its gross domestic product data for July-September, the second quarter of the current fiscal year. A research report from the government-owned State Bank of India, the country’s largest lender, fixes quarterly GDP growth at 8.1% amid sharply declining COVID cases. The intensification of the country’s vaccination campaign is seen as the key to economic recovery. In the same three-month period last year, India’s economy contracted 7.3%. Turkey also announced its third-quarter GDP on Tuesday.
Company income: Want Want, Up to Fintech Holdings
32 countries remove GSP benefits for Chinese imports
China will lose its special treatment under the World Trade Organization’s Generalized System of Preferences along with more than 30 other countries. These are the 27 members of the EU, the United Kingdom, Canada, Turkey, Ukraine and Liechtenstein. China will retain status with Australia, New Zealand and Norway.
Although Beijing has generally resisted promoting the ranks of developing countries in many international organizations, Chinese officials have adopted the GSP graduation as a sign of economic success and recognition of the competitiveness of Chinese products.
The annual Taipei-Shanghai forum will be held virtually. The cities will give speeches on the theme “New economy and new development”. Taipei City Mayor Ko Wen-je, who wants to run in Taiwan’s 2024 presidential election, and his Shanghai counterpart are expected to sign memoranda of understanding at the forum. These will cover technological innovation, zoos and orchestras. The Taiwan Continental Affairs Council has warned the Taipei City Government not to cross the line of cross-strait trade beyond the city-to-city level. The event was originally scheduled for June in Shanghai but delayed due to the COVID-19 outbreak in Taiwan earlier this year.
Australia’s GDP in Q3
Australia’s third quarter gross domestic product will reveal the impact of strict COVID-19 lockdowns in major cities. The central bank recently said economic activity had “contracted sharply” during the period. But things are improving. The bank expects a “rapid rebound” in domestic demand over the next two quarters, now that vaccinations are up and restrictions are easing, with GDP growth of 3% for 2021 and 5%. , 5% in 2022. On the same day as the data is released, Australia will reopen its border to fully vaccinated visa holders.
Cloud Village IPO
Cloud Village, NetEase’s music streaming unit, is set to debut in the market after halving its previous sales target. The relaunch of Cloud Village’s IPO could launch a new round of major listings. More than a dozen Chinese unicorns canceled their overseas IPO plans earlier this year as part of Beijing’s crackdown on internet data sharing.
With 185 million monthly active users, Cloud Village is the biggest competitor to New York-listed Tencent Holdings’ music subsidiary after Alibaba shut down its own Xiami Music service earlier this year. NetEase will invest $ 200 million in the Cloud Village IPO, with Sony Music Entertainment $ 100 million and Orbis Investment Management $ 50 million in shares, the prospectus says.
EuroCham China Report on China’s Standardization Policy
The European Chamber in China will publish a report on the growing footprint of the second-largest economy in international technical standardization, an increasingly fierce Sino-US battleground. The report will also review the challenges that European countries and businesses face due to China’s growing influence on standard setting.
Meeting of US and South Korean Defense Ministers in Seoul
US Secretary of Defense Lloyd Austin meets with his South Korean counterpart Suh Wook in Seoul as the arms race intensifies in Asia. The ministers will discuss how to cooperate in the denuclearization of the Korean Peninsula, as well as the return of wartime operational control to South Korea.
Opening of the China-Laos railway
The China-Laos high-speed railway is expected to come into operation. The project in China’s impoverished southern neighbor has sparked debate over loan terms critics see onerous for Laos. The celebrations planned for this week’s first train trip have also been toned down due to an increase in COVID-19 rates in Laos.
Semiconductor Forum, Taipei
The KT Li Foundation for Science and Technology Development, a non-governmental organization that commemorates former Minister of Economy KT Li, will host a technology forum. Presentations will be given by industry heavyweights such as Mark Liu, president of Taiwan Semiconductor Manufacturing Co .; Tsai Ming-kai, president of mobile chip development giant MediaTek; and Tien Wu, CEO of ASE Technology Holding.