Stock market

Amid US-China tensions, mainland China companies blacklisted by the US are expected to expand their presence in Hong Kong. While it may seem that the special autonomous region will reap the benefits, NUS academic Ben Charoenwong says investors are in fact wary of the costs involved and may look to other financial hubs like Singapore. But is Singapore ready to fill that role?

Zaobao’s China Desk analyses the impact of the recent China Eastern Airlines crash, touted as China’s worst aviation disaster since 2010. This comes at a time when China has been improving its flight safety record and its airlines are struggling to recover from the losses suffered from the Covid-19 slowdown. Will the aviation industry regroup and come back stronger from this?

The US capital market has been the main source of large-scale funding for Chinese tech companies, even as they compete for a slice of their home market. However, with the ongoing US-China trade war and Russia-Ukraine war, US capital is not flowing as readily into China as before, while China’s anti-monopoly crackdown has narrowed down tech companies’ growth prospects. Tech expert Yin Ruizhi explores the issue.

Chinese concept stocks plunged after the US Securities and Exchange Commissions’ recent announcement that another five US-listed Chinese companies might be delisted for non-compliance with US regulations. Although there was a rebound after Vice-Premier Liu He’s reassurance that China will implement policies to stabilise the stock market and support overseas listings, Chinese companies looking to raise capital abroad will still have to deal with two sets of inherently contradictory regulations from the US and China.

Despite past macroeconomic stability, the US economy is beginning to see increased inflation across many sectors. Reports say that US consumer price figures for January due on Thursday could show core inflation rising to the fastest pace since 1982 at 5.9%. The situation is not helped by the government's recent move to issue additional debt which was mostly purchased by Fed banks. If the US government defaults on its debt, the global financial market will be affected. Higher interest rates to fight inflation in the US may also require that China and other Asian economies adjust their own domestic policies on interest rates and exchange rates.

Amid regulatory concerns and news of Didi Chuxing delisting from the New York Stock Exchange, it seems that the writing is on the wall for Chinese companies seeking overseas listings. Will the Hong Kong Stock Exchange be their natural refuge? The Hong Kong government has implemented reforms to woo new-economy innovative companies and investors, but will these measures be enough? NUS academic Xu Le has the details.

New regulations announced by the Chinese authorities seem to have made it more complicated for Chinese companies to get listed overseas, even though the variable interest entity (VIE) structure is still in play. Given the added obstacles ahead, will Chinese companies still want to go through the trouble of seeking overseas listings? Zaobao correspondent Chen Jing reports.

The US government has seemingly pulled the rug from under the feet of SenseTime by putting it on a blacklist just a week before its planned IPO, effectively blocking US funding from the AI company. But while the official reason is human rights issues in Xinjiang, perhaps the real reason is the ongoing tech competition between the US and China. If so, it seems that the US has found another lever with which to pressure China — curtailing investment.

Amid recent news of Chinese ride-hailing company Didi delisting from the New York Stock Exchange, Zaobao correspondent Edwin Ong notes that China seems to be closing a regulatory loophole allowing companies to sidestep the Chinese authorities and get listed overseas. In turn, the US is taking action to require audit checks on Chinese companies that are already listed or want to get listed in the US. Is this a sign of financial decoupling between the US and China or will both sides reach an agreement on regulations?