CX Daily: Hong Kong Set to Ditch State Street as Manager of Tracker ETF
TuSimple plans to spin off its China operations. The country hikes fuel prices for the sixth time this year. If you haven’t already, click here to sign up for this briefing.
Hang Seng Bank’s office building in Shanghai in 2018. Photo: VCG
ETF /
Exclusive: Hong Kong set to ditch State Street as manager of tracker ETF
Hang Seng Investment Management Ltd. is set to replace State Street Global Advisors Asia Ltd. (State Street) as the manager of Hong Kong’s largest and most-popular exchange-traded fund (ETF), three sources with knowledge of the matter told Caixin. The change will be announced within the next one or two weeks, they said.
State Street, part of U.S.-based State Street Global Advisors Inc., has been the sole manager of the Tracker Fund of Hong Kong (TraHK) for more than 22 years. But the company has come under growing pressure as a result of deepening tensions between Washington and Beijing over investment and trading issues. Hang Seng Investment Management is wholly owned by Hang Seng Bank Ltd., one of Hong Kong’s largest lenders.
FINANCE & ECONOMY
Brokerage stocks surge on news of settlement fee cut.
Fees /
China to cut transaction settlement fees to reduce capital costs
China’s stock clearing agency will cut or waive certain registration and settlement fees to reduce the cost of capital as part of efforts to boost investor confidence in response to the recent market sell-offs, the agency said Thursday.
The China Securities Depository and Clearing Co. said in a statement it will reduce the minimum provision payment ratio for stock settlements from 18% to 16% starting in April.
To support economic recovery in Covid-hit areas, the clearing agency will waive registration fees for companies registered in Tianjin, Shenzhen, Shanghai and provinces including Inner Mongolia, Jilin, Shandong, Henan and Shaanxi.
PE /
Swedish private equity phenom makes industry’s boldest move yet into Asia
EQT AB agreed to buy Baring Private Equity Asia Ltd. for 6.8 billion euros ($7.5 billion) in the biggest takeover of a private equity firm by another in the sector.
The acquisition gives the Swedish investment house “immediate pan-Asia presence at scale,” according to a statement Wednesday, and marks its boldest move yet targeting Asia’s fast-growing private markets.
Covid-19 /
Hong Kong reviews Covid policies as banks get fed up
Rising frustration from the public and financial institutions is driving a review of pandemic control measures in Hong Kong, where stark containment measures have been in place since January to fight the city’s worst-ever Covid-19 outbreak.
Chief Executive Carrie Lam pointed to the strain on residents and damage to the reputation of the once vibrant Asian financial hub for the review, asking for a few more days before she unveils what could be sweeping changes to the city’s approach next week.
Analysis: Local authorities’ blind spots highlight China’s delicate Covid balancing act
Quick hits /
Ling Huawei: Trillion yuan profit transfer shouldn’t blur line between central bank and finance ministry
Taiwan surprises with biggest interest rate hike since 2007
BUSINESS & TECH
China Telecom will scale back 5G investment and focus more on data centers in 2022. Photo: VCG
China Telecom /
China Telecom scales back 5G investment, steps up industrial digitalization
China Telecom Corp. Ltd. is scaling back its 5G investment as it pivots to focus on data centers — now a national priority — and explores listing its cloud unit, according to Chairman Ke Ruiwen.
The telecom giant plans to invest 34 billion yuan ($5.3 billion) in 5G infrastructure in 2022, representing a year-on-year decrease of 10.5%, while total capital expenditure is set to reach 93 billion yuan, up 7% from a year ago, Ke said in an earnings call Thursday.
The spending cut for 5G comes at a time when China is accelerating the rollout of base stations to promote the use of 5G wireless technology, which has been adopted in industries ranging from public transportation to smart manufacturing.
Driverless /
Driverless truck startup TuSimple plans China business spinoff
China-backed self-driving truck startup TuSimple Holdings Inc. plans to spin off its China operations to address regulatory concerns, multiple sources close to the matter told Caixin.
The China business will be split off from the Nasdaq-traded company to operate independently in China, with a valuation of $1 billion, a company source said. The operating team in China will remain unchanged, the person said. The company’s shares rose 9% to $12.70 Thursday on Nasdaq.
Oil /
China hikes fuel prices for the sixth time this year
Fuel prices in China were increased by 750 yuan ($118) per ton for gasoline and 720 yuan per ton for diesel Friday, the National Development and Reform Commission announced (link in Chinese) Thursday. It’s the sixth consecutive hike this year.
After the change, the upper price limit for standard 95 RON gasoline surpassed the 9-yuan threshold in 27 out of the Chinese mainland’s 31 provincial-level regions, based on public information. Data for the remaining four regions — the provinces of Heilongjiang, Liaoning, Jilin, and the Inner Mongolia autonomous region — are not yet available.
E-commerce /
Online grocer Dingdong’s stock plunges on food safety probe
Shares of Dingdong (Cayman) Ltd. plunged nearly 11% Thursday after China’s market watchdog summoned the grocery platform to answer for food quality and safety breaches.
In a late Thursday social media post (link in Chinese), the New York-listed firm apologized for selling expired vegetables, manipulating expiration dates, selling frozen fish as fresh, and other unspecified misconduct.
Quick hits /
South Korean materials-makers ramp up output for EV batteries
Tech Insider /
Web watchdog to battle ‘chaos,’ Kuaishou’s overseas chief leaves
GALLERY
Snow brings out Forbidden City’s majesty
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