• Bloomberg

    SMIC’s Stock Offering Set to Be China’s Largest in a Decade

    (Bloomberg) -- Semiconductor Manufacturing International Corp. is set to hold the mainland’s largest stock sale in a decade, as China’s top homegrown chipmaker raises capital while the U.S. tightens restrictions on technology sales to the nation.SMIC could sell as much as 53.2 billion yuan ($7.5 billion) of shares, as it released offering details in a Sunday statement to the Shanghai Stock Exchange. In May, analysts estimated a Shanghai listing could fetch somewhere in the $3 billion range. The offering would be the largest since Agricultural Bank of China Ltd.’s 68.5 billion yuan initial public offering in 2010. SMIC’s Hong Kong stock jumped as much as 10% more Monday to a fresh record high.The company is China’s biggest contract manufacturer of chipsets and a major piece of Beijing’s vision to create a self-reliant and world-class semiconductor industry. SMIC plans to use the stock-sale proceeds to develop next-generation chipmaking to try to compete with Intel Corp. and Taiwan Semiconductor Manufacturing Co. Like TSMC, SMIC is a so-called foundry that helps fabricate silicon based on other companies’ designs.SMIC’s shares have tripled in Hong Kong this year, compared with a 9% drop for the Hang Seng Index, on bets trade friction with the U.S. will force Beijing to focus more on home-grown tech and products to replace imports. China’s state-backed funds pumped $2.25 billion into a SMIC wafer plant in May.The effort comes at a time the Trump administration is threatening to deny domestic companies like SMIC or Huawei Technologies Co. access to crucial components and circuitry. Its listing is a boost for the STAR market, which has struggled to attract major technology companies since its launch last year.The initial institutional offer for the shares was 165 times oversubscribed. China Integrated Circuit Industry Investment Fund will subscribe to 3.52 billion yuan of the offering as a strategic investor while Singapore’s sovereign fund, GIC Pte., will invest 3.32 billion yuan.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Dow Jones Futures: Coronavirus Stock Market Rally Higher As Covid Deaths Remain Low; What's Next For Tesla?
    Investor's Business Daily

    Dow Jones Futures: Coronavirus Stock Market Rally Higher As Covid Deaths Remain Low; What's Next For Tesla?

    The stock market returns with the Nasdaq at record highs as Covid-19 deaths remain low. What's next for Tesla stock?

  • Reuters

    Chinese miners' deal frenzy seen stalling on regulatory hurdles

    Growing scrutiny by mineral-rich Australia and Canada may cut short a deal frenzy led by China's state miners and limit Beijing's role in gold sector consolidation, bankers and analysts said. Shandong Gold Mining Co and Zijin Mining Group Co Ltd have driven a wave of acquisitions from the Canadian Arctic to South America to West Africa this year. Canada and Australia have recently tightened restrictions on investment by state-backed firms, fearing economic dislocation caused by the coronavirus pandemic will make it easier to buy strategic assets.

  • PR Newswire

    BGBS & SK E&S will enter into Joint Ventures to scale up natural gas business in the PRC

    Beijing Gas Blue Sky Holdings Limited ("the Company" or "Beijing Gas Blue Sky", together with its subsidiaries, the "Group", HKSE stock code: 6828) is pleased to announce that, the Group has entered into Share transfer Increase Agreements with a subsidiary of SK E&S;, South Korea's largest integrated energy and chemical company, pursuant to which it conditionally agreed to sell 30% equity interest in Ningbo Beilun Bochen Energy Trading Co., Ltd., Huzhou Bochen Natural Gas Co., Ltd. and Zhejiang Boxin Energy Co., Ltd., at a consideration amount of RMB37.5 million, RMB30.0 million and RBM61.5 million, respectively.

  • Oil prices mixed as coronavirus spike casts shadow over U.S. demand
    Reuters

    Oil prices mixed as coronavirus spike casts shadow over U.S. demand

    Oil prices offered up a mixed market snapshot on Monday, with Brent crude edging higher, supported by tighter supplies, while U.S. benchmark WTI futures dropped on concern that a spike in coronavirus cases could curb oil demand in the United States. Brent crude rose 11 cents, or 0.3%, to $42.91 a barrel by 0109 GMT after a 4.3% gain last week, while U.S. West Texas Intermediate crude was at $40.35, down 30 cents, or 0.7%, from its previous settlement on Thursday. Amid rising numbers of coronavirus cases in 39 U.S. states, a Reuters tally showed that in the first four days of July alone, 15 states reported record increases in new COVID-19 infections with parties over the holiday weekend possibly leading to another spike.

  • Buy now, pay whenever? Lockdown lift for online shopping loans
    Reuters

    Buy now, pay whenever? Lockdown lift for online shopping loans

    What persuaded her to click 'buy', Friend said, was the short-term credit offered by Afterpay, which split the $260 payment into four interest-free instalments. Afterpay is among a handful of alternative credit firms which offer small loans, mostly to online shoppers, and make their money by charging merchants a 4%-6% commission.

  • Asia shares at four-month peak, stimulus trumps virus fears
    Reuters

    Asia shares at four-month peak, stimulus trumps virus fears

    Asian shares held near four-month highs on Monday as investors counted on super-cheap liquidity and fiscal stimulus to sustain the global economic recovery even as surging coronavirus cases delayed reopenings across the United States. MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.05%, having hit its highest since February. Japan's Nikkei, however, has lagged with its domestic economy and was last up 0.4%.

  • Luckin Coffee Shareholders Vote to Remove Chairman, Report Says
    Bloomberg

    Luckin Coffee Shareholders Vote to Remove Chairman, Report Says

    (Bloomberg) -- Luckin Coffee Inc.’s chairman, Charles Zhengyao Lu, was ousted by shareholders from the scandal-plagued Chinese company, just days after surviving an effort by some directors to strip him of control, local media reports said, citing unidentified sources.Three other board directors including Sean Shao were also removed at an extraordinary shareholders meeting in Beijing on Sunday, according to the reports from 21st Century Business Herald and Sina, while Ying Zeng and Jie Yang will be added as independent board directors.A company representative didn’t respond to requests for comment.The removal of Lu is the culminating step in a major shakeup of top management since fabricated transactions dating back to April 2019 came to light earlier this year. The coffee chain already fired its chief executive and chief operating officers, among other employees, in May as it came under investigation by Chinese and U.S. regulators.The voting result ended a temporary reprieve for Lu, who remained chairman after a proposal to remove him from the startup he founded wasn’t approved by the required two-thirds of directors at a special meeting last week. According to Luckin’s Articles of Association, a director can be removed by shareholders or other board directors.Luckin’s executive shakeup is an unusual case in China, where it’s rare for a private startup to oust a founder and chairman, who is considered the soul of the firm. Lu and others were removed in a bid to distance the company from the financial scandal and allow it to continue operating more normally.Lu’s dismissal comes after Luckin said it substantially completed an internal investigation into the financial irregularities. Once considered among China’s brightest growth stories, the chain has seen its stock become almost worthless, plunging 94% this year.The company said last week its internal investigation concluded that net revenue last year was inflated by about 2.12 billion yuan ($300 million) while costs and expenses were boosted by 1.34 billion yuan. After the conclusion of the investigation, a majority of directors had requested Lu’s resignation.Banks Face $300 Million Shortfall on Luckin Margin LoansLuckin’s fall has ensnared banks including Credit Suisse Group AG and Morgan Stanley as they face a $300 million shortfall on margin loans made to Lu. The scandal is also a black eye for China Inc. as the U.S. Congress moves closer to passing legislation that could bar Chinese companies from trading on U.S. stock exchanges.Luckin said it would fire a dozen workers and discipline 15 others following the internal investigation. It already dismissed CEO Jenny Zhiya Qian, COO Jian Liu and some employees who reported to them in May after uncovering the scheme that funneled funds to the company from several third parties with links to the participants. The board said it fired the executives based on evidence showing their participation in the false transactions.Lu became a billionaire after his fast-growing Chinese chain went public in the U.S., but much of his wealth was wiped out by the plunge in Luckin’s stock. Lu last month resigned as chairman of Car Inc., China’s biggest rental-car fleet operator, as scrutiny increased over Luckin and the accounting scandal. A Beijing court has frozen Lu’s entire stake in Car Inc.’s parent, UCAR Inc., for judicial reasons.He has drawn criticism for applying an aggressive cash-burning expansion strategy to all his startup projects, as the model helps quickly expand the businesses and gain market share at the expense of profitability.Luckin, founded in 2017, raised $645 million in its U.S. IPO last year and counted BlackRock Inc. among its backers. It took direct aim at Starbucks Corp. in China, with a strategy to open more stores in two years than the Seattle-based heavyweight has in two decades.(Updates on attribution of media reports)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Stocks, Yields Start Week With Gains; Dollar Slips: Markets Wrap
    Bloomberg

    Stocks, Yields Start Week With Gains; Dollar Slips: Markets Wrap

    (Bloomberg) -- Asian stocks rose along with U.S. and European equity futures as investors weighed expectations for ongoing policy support against increasing global coronavirus cases. The dollar and Treasuries dipped.Shares advanced in Japan, though volumes were down about 25% compared with the average over the past month. Equities in Hong Kong, China and South Korea were also higher. U.S. futures rose with markets due to reopen after a holiday. Australian shares underperformed as authorities ramped up efforts to control outbreaks in Melbourne. The WHO reported a one-day high in global infections over the weekend with cases crossing 11.3 million. Oil slipped.Investors are weighing a global equity market that remains about 40% above its March lows amid an economic recovery under threat from the continuing spread of the virus. Goldman Sachs Group Inc. now expects a wider contraction in the U.S. economy this year, saying third-quarter growth won’t be as strong as predicted.“The willingness of investors to look through the current disruption to an anticipated recovery this quarter is imperilled by still rising virus infection rates,” said Michael McCarthy, a markets strategist at CMC Markets Plc in Sydney.Here are some key events coming up:Monetary policy decisions are due Tuesday in Australia and Malaysia.The EIA crude oil inventory report comes Wednesday.All eyes will be on the U.S. weekly jobless claims report on Thursday.Singapore holds its general election on Friday.These are the main moves in markets:StocksFutures on the S&P 500 rose 0.6% as of 10:20 a.m. in Tokyo.Japan’s Topix index advanced 0.9%.Hong Kong’s Hang Seng climbed 0.7%.Shanghai Composite rose 1.1%.South Korea’s Kospi added 0.7%.Australia’s S&P/ASX 200 Index fell 0.3%.Euro Stoxx 50 futures rose 1.5%.CurrenciesThe yen slipped 0.2% to 107.67 per dollar.The offshore yuan was at 7.0644 per dollar.The euro bought $1.1263, up 0.1%.BondsThe yield on 10-year Treasuries ticked up one basis point to 0.68%.Australian 10-year yields were at 0.94%, up four basis points.CommoditiesWest Texas Intermediate crude oil fell 0.7% to $40.35 a barrel.Gold rose 0.1% to $1,774.47 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • What Is The Ownership Structure Like For Damstra Holdings Limited (ASX:DTC)?
    Simply Wall St.

    What Is The Ownership Structure Like For Damstra Holdings Limited (ASX:DTC)?

    A look at the shareholders of Damstra Holdings Limited (ASX:DTC) can tell us which group is most powerful. Large...

  • India may require online shops to hand over site code
    Engadget

    India may require online shops to hand over site code

    India is drafting e-commerce rules that could force internet giants to hand over source code and AI info.

  • Hedge Funds Are Buying MarineMax, Inc. (HZO)
    Insider Monkey

    Hedge Funds Are Buying MarineMax, Inc. (HZO)

    The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]

  • Crescent Point Energy Corp (CPG): Are Hedge Funds Right About This Stock?
    Insider Monkey

    Crescent Point Energy Corp (CPG): Are Hedge Funds Right About This Stock?

    At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (see why hell is coming). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. […]

  • Hedge Funds Are Warming Up To BioXcel Therapeutics, Inc. (BTAI)
    Insider Monkey

    Hedge Funds Are Warming Up To BioXcel Therapeutics, Inc. (BTAI)

    The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]

  • Turtle Beach Corp (HEAR): Hedge Funds Taking Some Chips Off The Table
    Insider Monkey

    Turtle Beach Corp (HEAR): Hedge Funds Taking Some Chips Off The Table

    The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. Now, we are […]

  • Hedge Funds Aren’t Crazy About InVitae Corporation (NVTA)
    Insider Monkey

    Hedge Funds Aren’t Crazy About InVitae Corporation (NVTA)

    The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. Now, we are […]

  • Myovant Sciences Ltd. (MYOV): Hedge Fund Sentiment Unchanged
    Insider Monkey

    Myovant Sciences Ltd. (MYOV): Hedge Fund Sentiment Unchanged

    We know that hedge funds generate strong, risk-adjusted returns over the long run, which is why imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, professional investors have to conduct complex analyses, spend many resources and use tools that are not […]

  • Hedge Funds Never Been Less Bullish On New Gold Inc. (NGD)
    Insider Monkey

    Hedge Funds Never Been Less Bullish On New Gold Inc. (NGD)

    The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. Now, we are […]

  • Argentina’s ‘Last’ Debt Offer Extends Proposal to Aug. 4
    Bloomberg

    Argentina’s ‘Last’ Debt Offer Extends Proposal to Aug. 4

    (Bloomberg) -- Argentina unveiled the details of its latest proposal to restructure $65 billion of foreign bonds and extended it deadline until August 4.The proposal seeks to reduce creditor losses on the bonds’ principal, increase coupons and shorten bond maturities, according to a release published Sunday evening. The latest proposal will include minimum participation thresholds as a condition to go forward, according to the release, without disclosing the percentages needed.Argentina’s debt talks have stumbled in recent weeks, with little progress and limited communication with some of the nation’s largest creditors. The South American country, which default for the ninth time in history in May, has repeatedly extended the deadline to reach a deal and until Sunday, had set July 24 as the next key date. Given that the country is already in default, the deadlines aren’t binding.“We’ve done our part, based on our full commitment to put a final end to the debt crisis in a sustainable way,” said Economy Minister Martin Guzman in an emailed statement. “We hope our creditors can understand the restrictions we have, and they value our will to reach a deal that works for all parts.”Argentina’s latest offer will pay accrued interest via a dollar and euro bond due 2030, and will allow holders of bonds issued under the 2005 indentures to receive new bonds maintaining the same contracts. The offer will let holders of euro and swiss franc-denominated eligible bonds choose dollar-denominated bonds.The proposal unveiled Sunday would begin making capital payments in March 2025 and set semi-annual coupons, with payments in March and September of each year, beginning September 2021. That’s earlier than a prior offer formally presented in April, which suggested interest payments begin in 2023. The latest proposal also suggests step-up coupons, beginning at 0.125% next year, with some bonds eventually paying investors 5% annually.“The government has made a substantial improvement relative to the first offer introduced by mid-April,” according to Ramiro Blazquez, head of research and strategy at BancTrust & Co. in Buenos Aires. With the latest extension, “the government has decided to continue playing the chicken game based on the notion -probably nurtured by Guzman- that creditors also stand much to lose from a messy default.”The offer also proposes to swap existing bonds for dollar and euro bonds maturing in 2030, 2035, 2038, 2041 and 2046. It did not include a sweetener, also known as a value recovery instrument. Prior proposals from the government and creditors made public in June had suggested adding a sweetener tied to either exports or gross domestic product.“The inclusion of a value recovery instrument could be the government’s ace under the sleeve to eventually unlock negotiations and increase the value of the offer further without compromising debt sustainability,” Blazquez added.Argentina will also submit a bill to Congress in the coming days to restructure its local-law, foreign currency debt. The government says the bill will propose giving holders of local-law dollar debt the same conditions that it has offered creditors of overseas debt in its latest offer.Huge EffortArgentina’s President Alberto Fernandez had said earlier Sunday that the government would make public a new offer to creditors.“The offer will be revealed today,” Fernandez said in an interview with local radio. “We have made a huge effort to keep our word. This is the maximum effort that we can make.” He said the new offer would be open until the end of August.Last week, one group of bondholders, the Argentina Creditor Committee, presented a proposal to the government. But two other groups of creditors are discussing an agreement to reject a new government offer based on that proposal, according to people familiar with the discussions.Those two groups, which include major firms such as BlackRock Inc., Ashmore Group Plc. and Monarch Alternative Capital LP, said last week they hadn’t had meaningful discussions with the government since June 17.(Updates with Minister quote in fourth paragraph, analyst quote in seventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • BRP Inc. (DOOO): Hedge Funds Are Nibbling On
    Insider Monkey

    BRP Inc. (DOOO): Hedge Funds Are Nibbling On

    The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. Now, we are […]

  • Is Recro Pharma Inc (REPH) A Good Stock To Buy?
    Insider Monkey

    Is Recro Pharma Inc (REPH) A Good Stock To Buy?

    The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. Now, we are […]

  • Here is What Hedge Funds Think About Nautilus, Inc. (NLS)
    Insider Monkey

    Here is What Hedge Funds Think About Nautilus, Inc. (NLS)

    Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the first quarter. You can find articles about an individual hedge fund's trades on numerous financial […]

  • Oil Stuck Near $43 With Market Weighing Supply Against Virus
    Bloomberg

    Oil Stuck Near $43 With Market Weighing Supply Against Virus

    (Bloomberg) -- Oil in London was anchored near $43 a barrel as investors weighed tightening crude supplies and robust U.S. economic data against surging coronavirus infections.Libya’s oil exports are expected to slide this month as forces opposed to the government continue to block shipments, adding to coordinated OPEC+ cuts, while data last week showed the American labor market rebounded in June. However, a surge in U.S. virus cases has pushed global infections above 11.3 million, prompting concerns the recovery may be derailed.See also: Markets Torn Between Robust Economic Data and Rising Virus CasesWhile Brent oil has doubled since April as OPEC+ reduced output to tackle a glut, surging infections across the globe has increased fears of a prolonged hit to demand and kept a lid on further gains. OPEC and its allies are yet to decide on whether to extend their full production cutbacks after July, Russian Energy Minister Alexander Novak said last week.Libya will export two oil cargoes totaling 1.2 million barrels in July -- a third less than in June. The Bouri and Farwah terminals will each ship one cargo of 600,000 barrels, according to an initial loading program seen by Bloomberg. That compares with 1.8 million barrels shipped for all of June.See also: Lost in Oil’s Rally: $2 Trillion-a-Year Refining Industry CrisisMeanwhile, the World Health Organization reported a one-day high in global infections over the weekend, while Iran and Indonesia reported their deadliest days yet. Mexico overtook France with the fifth-deadliest outbreak, while India was poised to surpass Russia with the third-highest number of cases.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • JPMorgan Says Global Liquidity Surge to Boost Stocks and Bonds
    Bloomberg

    JPMorgan Says Global Liquidity Surge to Boost Stocks and Bonds

    (Bloomberg) -- Extremely loose monetary policy will be required for a long time to support growing debt levels worldwide, buoying liquidity along with global equity and bond prices, according to JPMorgan Chase & Co.“More debt, more liquidity, more asset reflation,” was the conclusion strategists including Nikolaos Panigirtzoglou, who forecast a $16 trillion increase in worldwide debt this year that would push the combination of private and public sector borrowing to a record high $200 trillion by year-end.That will lead to higher savings rates, very accommodative central bank policies and more cash in the system -- the bulk of which may find its way into the global stock market, they wrote in a note Friday.“Elevated cash holdings create a strong background support for non-cash assets such as bonds and equities,” the strategists wrote. Given the current low level of bond yields, “most of this liquidity will eventually be deployed into equities as the need for precautionary savings subsides over time.”The increase in global liquidity during the coronavirus crisis has happened at a much swifter pace that during the 2008 downturn, according to JPMorgan. Total money creation could exceed $15 trillion or more by the middle of next year as quantitative easing continues at a stronger-than-normal level, the strategists wrote.In the U.S., M2 money supply has risen $3 trillion so far this year to $18.4 trillion, according to Federal Reserve data compiled by Bloomberg.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Koike Scores Landslide Tokyo Win
    Bloomberg Politics

    Koike Scores Landslide Tokyo Win

    Jul.05 -- Tokyo Governor Yuriko Koike has scored a landslide victory in her re-election bid as the city tries to keep a fresh virus surge in check. Koike, the first woman to govern the 14 million strong city, is set to win about 60% of the vote, beating her nearest rival by 40 percentage points. Bloomberg’s Isabel Reynolds reports on “Bloomberg Daybreak: Asia.”