China securities regulator suspends restricted share lending from Monday; Hong Kong is facing a repeat of 1998 Asia financial crisis
China Sees ‘Big Increase’ in Arrivals to Thailand on Visa Rules
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China securities regulator suspends restricted share lending from Monday
Nikkei Asia
China's securities regulator, the China Securities Regulatory Commission (CSRC), has announced that it will fully suspend the lending of restricted shares, effective from Monday. This move is aimed at stabilising China's stock markets, which have been experiencing sharp falls recently. Restricted shares are often given to employees or investors with certain limits on their sale, but they can be lent to others for trading purposes, such as short-selling, which can add pressure on markets during a slump. The CSRC also stated that it will crack down on illegal activities that use securities lending to reduce holdings and cash out.
Hong Kong is facing a repeat of 1998 Asia financial crisis
Japan Times
Hong Kong's finance industry is preparing for the worst as the Hang Seng Index continues to fall. Many are comparing the current situation to the Asia Financial Crisis of 1998, with China being seen as the root cause and Hong Kong as the epicenter. In the past, Hong Kong was shielded from financial crises by a rising Chinese economy, but this may not be the case this time.
China Sees ‘Big Increase’ in Arrivals to Thailand on Visa Rules
Bloomberg
Thailand and China have signed an agreement to waive visa requirements for travelers between the two countries, allowing tourists to stay visa-free for up to 30 days per entry. This move is expected to significantly increase the number of Chinese visitors to Thailand, which were the country's largest group of tourists before the pandemic. Chinese tourists accounted for over 25% of foreign visitors in 2019 but dropped to around 12.5% in 2020. The Thai government aims to attract 8 million tourists from China this year as part of its target of 35 million foreign arrivals. China is Thailand's largest trading partner and biggest source of foreign investment. The two countries also plan to strengthen cooperation in transportation and trade.
U.S.-China talks fall short in nudging Beijing toward Red Sea breakthrough
Japan Times
Top U.S. and Chinese officials, U.S. national security adviser Jake Sullivan and Chinese Foreign Minister Wang Yi, met for two days in Bangkok to discuss improving the relationship between the two countries. The talks focused on reopening lines of communication and working together on common interests. However, the U.S. failed to get China to do more to pressure Iran to halt Houthi attacks on commercial ships in the Red Sea. The two countries did agree to work towards a phone call between President Joe Biden and Chinese leader Xi Jinping in the spring.
China Evergrande: What if the property giant is liquidated?
Deutsche Welle
China Evergrande, the troubled property developer that owes $300bn, could be liquidated as early as Monday as a court in Hong Kong hears a winding-up petition against the firm by foreign creditors. The legal proceedings are being brought by Samoa-registered Top Shine, an investor in one of Evergrande's subsidiaries. A crackdown three years ago by China on two decades of real estate speculation caused a deepening property crisis and left Evergrande owing $300 billion.
Cat bonds may see robust growth, as Chinese policymakers prepare for natural disasters
South China Morning Post
China could experience strong growth in catastrophe bonds (cat bonds) as policymakers look for more financial tools to share the risks associated with natural disasters. Cat bonds could help China develop a multilayer risk-transfer mechanism that combines traditional insurance products, government subsidies, and cat bonds to increase the country's capacity in post-disaster risk financing. In 2023, cat bond issuance reached a record high of $15bn globally, up 8% from the previous year, according to Swiss Re. Hong Kong has quickly become an emerging hub for cat bonds, but Chinese firms are also showing increased interest in this financial tool.
Big tech firms snap up land to build more office space amid real estate slump
South China Morning Post
Chinese tech giants Tencent and Alibaba are buying up land in China to meet their real estate needs for office space. Tencent spent $905m on land in Beijing, while Alibaba recently completed construction on a 470,000 square metre campus in the city. Last year, video game developer miHoYo and Alibaba's fintech arm Ant Group also purchased land in Shanghai and Hangzhou respectively. The purchases come as the tech sector recovers from regulatory upheaval and a stock rout that has wiped billions of dollars from the market value of Chinese tech firms.
Chinese police arrest suspects in ‘Apple ID loan’ rackets
South China Morning Post
More than 40 people have been arrested in China in connection with fraudulent schemes targeting iPhone users. The scams involve individuals giving up their personal Apple IDs to obtain loans, allowing lenders to abuse their accounts. Borrowers are asked to sign out of their Apple devices and log back in using an Apple ID provided by the lender. If they fail to make repayments on time, the lender threatens to block their device, call their contacts, and divulge personal information. The police arrested nine groups of people involved in the schemes, covering 41 suspects across 21 provinces.
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