APAC

The Metaverse in Asia: "The Next Big Thing"?
Mark Zuckerberg’s AR platform, the Metaverse, has often been questioned since its creation has been announced to the public. But while the masses are unsure of the digital future, major companies have been pouring billions of dollars into the development of software and innovative technology to accompany it. In particular, Chinese tech giants are chasing over 8 trillion dollars in the Metaverse, which is a big signal to companies globally that this may be a good investment opportunity.

Buy Now Pay Later Australian industry: What is next?
The increase of digitisation in the financial world has favored the strong growth of the 'Buy Now Pay Later', in particular, Asia-Pacific is expected to experience the fastest expansion in the sector. However, authorities and consumers are concerned regarding the regulatory gap and are ready to impose new regulations. This article is aimed at analysing the effects of such developments on the Australian market and speculating about the possible future scenarios and shifts in the Australian economic landscape.

South Korean liquidity crunch: the case of Legoland
South Korea's private sector always had a history of public subsidization. However, this time, the straw which broke the camel’s back in South Korea’s liquidity situation was a Legoland theme park. Legoland was opened and inaugurated on May 5, 2022, financed by the Gangwon Jungdo Development Corporation (GJC), however, it failed to generate enough profits. This article will go inside the case and present the economic consequences of it.

The Black Sea Grain Initiative - the extent and the uncertainty of the deal
On November 19, 2022, the Black Sea Grain Initiative was renewed, ending months of uncertainty over the future access of many countries to the agricultural exports of Russia and Ukraine. However, speculations over the potential suspension of the deal revealed the precarity of the greater macroeconomic situation. This article will explore the implications of this issue as they relate to the APAC economic region in particular.

The Chinese Real Estate Market: what is happening and where is it going
What is happening in China’s real estate sector? It used to be the country’s main driver of the economy, but it has started to drag it in the opposite direction. Developers are no longer building homes, buyers have started to hold off on paying their mortgages, and the system has run out of capital. China’s plan consists in directing more state-owned money to solve the issue, but the question is: will this system still be sustainable in the long term?

Asian countries take a hit from the US chip export restrictions: will they fight back? - November 20, 2022
Biden’s ban on semiconductor exports to China has become one of the most important economic policies this year as it signalled a shift in the US Administration's approach towards relations with China and has created turmoil for many high-tech industries. This article is aimed at analysing the effects of such restrictions on the Asian semiconductor industry and speculating about the possible future scenarios and shifts in the global advanced technology landscape.

Xi Jinping’s consolidation of power: the detrimental effects of Chinese isolationist policies - November 16, 2022
Xi Jinping’s consolidation of power, marked by the 20th National Congress of the Chinese Communist Party, officially crowns him as the most powerful Asian leader since Mao Zedong. How has the market responded to the implementation of his national-oriented preferences? This article will analyze the origin of Chinese stocks current valuations, commenting on the impact of Xi Jinping’s measures on expected economic growth, and on the higher risk premium required by investors.

What lies behind APAC inflation and what is ahead? - November 13, 2022
The global economic outlook has darkened, and growth across Asia and the Pacific is poised to slow further amid the continuing impact of Russia’s invasion of Ukraine and other shocks. However, different macroeconomic conditions and monetary policies are observed in most of the countries on the Pacific. What lies behind them?

China's energy transition path - May 29, 2022
Over the past 40 years, China has sustained a strong economic expansion with growth rates averaging 9.5%; this has brought rising energy consumption. However, 2020 marked a turning point in the country’s energy and climate policy, with the end of the 13th Five-Year Plan and the announcement of climate neutrality by 2060.

Chinese tech companies and their regulations: why something is changing - May 26, 2022
China’s Big Tech industry is dominated by players such as Alibaba, Bytedance and Tencent, which up to recent weeks have had to face the regulatory actions of the Chinese government, intent on curbing their dominance. But with the Chinese economy slowing, will the government ease regulatory actions to stimulate growth?

The CNOOC IPO
On April 11th, 2022, the China National Offshore Oil Corporation, better known as CNOOC, officially went public on the Shanghai Stock Exchange (SSE). To fully understand the reasons underlying this IPO and its relevance, the present article explains the business model and history of the company and further elaborates on its NYSE delisting.

The Chinese Zero-Covid Policy and its Implication
A new rise in Covid cases and subsequent restrictions imposed by the Chinese government have led many Chinese cities to come to a standstill. Apart from the social and humanitarian consequences of ongoing lockdowns, Chinese businesses and the Chinese economy are also majorly impacted by the measures. The present article takes a deep dive into the current situation in China

Investing in South Korea: opportunities and risks - May 10, 2022
South Korea’s economy is fourth in Asia and tenth in the world by nominal GDP. Having experienced an extraordinary economic growth since the Korean War, the state is now one of the most developed on the planet: what are the opportunities and the risks relative to investing there?

Ferretti chooses China for its IPO - May 7, 2022
If there was one market that had an interesting IPO situation over the last two years, it would without a doubt have to be China. Given the presented market conditions, we analyse the IPO of Ferretti, an Italian shipbuilding firm, that decided to offer its shares in Hong Kong and we perform a peer valuation. We conclude by answering the question: the IPO was to be done in China?

GoTo’s Way to the top of the Indonesian Tech Sector
Why is Indonesia a potential hub to new startups? How was GoTo, the Indoensian giant of e-commerce and ride hailing, able to develop its business in the country and decide to go for an IPO? A deep dive into the challenges technological start-ups face in Indonesia.

Role of Asian companies in the development of the metaverse - April 11, 2022
On the 28th October 2021, Mark Zuckerberg decided to undertake one of the most daring rebranding operations the market has ever seen by taking his company to a completely new online environment known as the metaverse. In this article, we analyze the players in the development of the metaverse in Asia and what steps they are taking to secure a role in this futuristic market.

Share Buybacks - The Alibaba Case
Companies have two main ways of returning value to their shareholders: They may either rely on the issuance of dividends or on share buyback programs. While dividends have been a popular alternative for various reasons, numerous Tech companies have increasingly relied on share buybacks in the past. The present article elaborates on buyback programs by explaining the theory behing buybacks and brings forward practical evidence from Alibaba's proposed buyback program.

Comparative tax policy across China and Korea: an examination of economic growth and asset pricing
Tax systems play a crucial role for fiscal policy and management of the public sector. Little tax revenue makes it difficult for governments to spend on public infrastructure, education and health services; high tax burdens deter economic growth, as they discourage work effort and private investment. Why are China and South Korea changing their stances on some of their tax policies?

The financial implications of the Russia - Ukraine conflict on the Asian economy - April 4, 2021
Following Russia’s invasion of Ukraine there has been much discussion of its global implications. Markets were swept with uncertainty and countries began to respond to Russia’s actions politically and economically. This article examines the financial positions of Japan, India, and China. It also takes a deeper dive into the effects of the invasion on China’s geopolitical stance and its goal of destabilizing the dollar as the dominant currency.

The case of Variable Interest Entities of Chinese listed companies
It has been a turbulent year for Chinese companies, as tech giants like Alibaba and Tencent have seen their share price fall by more than 50% from their respective highs. One of the reasons for the large drop in value can be traced back to the use of Variable Interest Entities, which give western investors the chance to invest into Chinese companies. The present article takes a look at such a company structure and the associated risks when using VIEs.

How can Asian Trade Agreements Defy the Headwinds Against Globalization?
The accelerating trend of globalization has over the last decades transformed the Asian continent from a largely underdeveloped region marked by the scars of colonial histories to a flourishing landscape with a number of thriving economies at the heart of global supply chains. However, over recent years, several headwinds from the global rise of economic protectionism to geopolitical tensions have threatened to slow or even reverse this development.

The case of Evergrande. Are we looking at the next Lehman Brothers? - November 17, 2021
Evergrande Group is the second largest property developer in China by sales. Over the past 15 years the company has embarked on an impressive growth journey based on its “high debt, high leverage, high turnover and low cost” business model. Nevertheless, Evergrande’s extreme usage of leverage, that underpinned its incredible expansion, eventually caught up to it.

Fumio Kishida, Japan's new Prime Minister. Is this the end of Abenomics? - November 16, 2021
While Japanese stock market is reaching 30 year highs following the pandemic recovery, Fumio Kishida has been elected as Japan’s new Prime Minister on October 4th 2021. In the following paragraphs we analyze the impact that this election could have on the world’s 3rd economy by defining the characteristics of the Japanese economy as well as the stock market’s specific features trying to come up with possible outlooks on the future of Japan.

TATA’s Acquisition of AirIndia - November 14, 2021
On October 8th, Tata Sons Chairman Emeritus Ratan Tata announced the historical return of lossmaking carrier Air India to the founders after its nationalization 68 years ago. Starting from an overview of the airline industry and a brief description of the two companies involved in the transaction, this article seeks to develop a thorough understanding of the risks, rationale, and synergies of the deal.

Energy Market Disruptions. The impact of China's energy shortage - November 11, 2021
Driven by the surge in the prices of the main energy commodities, international supply chain disruptions are putting under strain the speed of the recovery of global economies from the pandemic. The spike in the prices of coal, oil and natural gas is exacerbating the rise in global inflation and together with the unavailability of supplies and policies for the green transition, is causing severe damage to the Chinese economy, the largest coal exporter. What’s next for the energy market and where is China placed into the picture?

Panasonic's acquisition of Blue Yonder - June 19, 2021
Panasonic Corp. is a Japanese multinational electronics company, headquartered in Kadoma, Osaka. It offers a wide range of products and services like rechargeable batteries and industrial systems. To improve the quality of the products and services offered to clients, Panasonic has announced on Friday 23 April its intention to buy the U.S. supply-chain software provider Blue Yonder Holding Inc. from Blackstone Group Inc. and New Mountain Capital LLC for $7.1 billion.

Hong Kong: The Asian Miracle - 18 June, 2021
In the late 1800s, Hong Kong rose to international prominence when it acted as a base of operations for British colonial trade, effectively bridging the prosperous West and emerging Eastern world. And while modern-day Hong Kong has certainly evolved over the past two centuries, its role in the global economy has remained largely unchanged.

The deterioration of the China-Philippines relationship in the South China Sea - 18 June, 2021
The South China Sea has been home to maritime disputes since China laid claims on almost its entirety with the nine-dash line (then eleven-dash line) in 1947. In April 2021, China and the Philippines had an unusual confrontation following the threatening presence of more than 200 Chinese fishing vessels near the Spratlys, located in the middle of the region.

How CVC had planned to buyout Toshiba - 16 June, 2021
It is no secret that in the last years, activist investors have identified in the Japanese stock market an incredible investment opportunity. Investors identify in the Japanese financial market a developed market to find firms trading below their intrinsic value.
Toshiba was a prime example of such an attractive investment opportunity for active investors. In 2021, the company had managed to improve its financial performance after a very turbulent period.

Leveraging infrastructure investments for a green economic recovery - 6 May, 2021
According to the World Bank, the ongoing pandemic triggered the deepest worldwide recession since World War II and many governments are looking at green infrastructure projects as a way to provide relief to a pandemic-damaged economy. The EU and the US have already launched massive infrastructure bills. For the years ahead, Asia, and China in particular, will lead the way with $35bn infrastructure spending out of the $66bn in global infrastructure expenditure forecasted between 2021 and 2040.

Orocobre-Galaxy merger: the new behemoth in lithium industry - 5 May, 2021
On April 19th, the Brisbane-based Orocobre Limited announced they have come to an agreement with the peer Galaxy Resources Ltd. to merge in a A$4 (US$3.1) bn deal. This union will give birth to the world’s fifth largest player – by market capitalization - in one of the fastest growing industries: lithium chemicals.

Japan Post and Rakuten: a joint effort to escape a downward spiral - 25 April, 2021
Rakuten Inc’s shares surged up 24% on March 15th after it announced plans to raise $2.2 billion through stake sales with Chinese tech behemoth Tencent, Japan Post Holdings and Walmart in its latest attempt to fend off competition from Amazon.

Social media industry shake-up in South-East Asia - 22 April, 2021
The age of social media has changed the whole world as no trend did before, and now social media is a parcel of the everyday life of users. Due to the immense potential of social media, the global social media market is expected to tread along a healthy growth track. The scene is dominated by US and Chinese tech giants, and therefore, in March 2021, the SoftBank-backed Z Holdings merged with Line, reaching a market capitalization of $43bn, in order to become the third force in the social media landscape and reshape the industry as US giants did with previous mergers.

What is going on within the Semiconductors Market? An overview of the industry and its main logics - 18 April, 2021
Given their wide range of applications, global supply of semiconductors has increased in size in the previous years. To really understand the dynamics of this industry, we should focus on the supply chain and its implications. Is automotive industry a unique case or is it just the first of many sectors to suffer from the semiconductors shortage? Will the trend of de-globalization intensify this trend?

How the most significant carbon emitter can turn carbon-free by 2060 - 10 April, 2021
At the United Nations General Assembly last December, China has pledged to become carbon neutral in the next 40 years. From increasing the number of renewable energy installations to shutting down coal mines and investing in carbon capture and storage (CSS) technologies, China has certainly a long way to go. How will the largest carbon emitter become a carbon quitter?

Baidu's IPO on the Hong Kong stock exchange - 9 April, 2021
Baidu raised more than $3 billion on the 23rd of March during its IPO at the Hong Kong stock exchange. However, the increased fees on trading imposed by Chinese authorities and the general rotation from growth to value stocks didn't allow the listing to match the high expectations there were.