- China Takes Action To Block Ipos in the US
- Japan Updates İts Fiscal 2021 Growth Forecast Downwards
- Singapore Prepares To Stop Counting Daily Covid-19 Cases
China Takes Action To Block Ipos in the US
According to the information provided by sources close to the subject, regulatory authorities in Beijing are making some rule changes to prevent the public offerings of technology giants abroad.
The China Capital Markets Instruments Regulatory Authority (CSRC) is preparing to revise some of the rules applied since 1994 regarding public offerings abroad. With the new plan, companies will have to get approval before going public in the US or Hong Kong.
According to a statement issued by the State Council, the procedure for overseas listings, including IPOs in such markets as the New York Stock Exchange and the Nasdaq, will be revised, according to a statement issued by the State Council as the Chinese government’s cabinet is called.
Besides, the announcement triggered a sell-off in shares of Didi Global Inc., which raised US$4.4 billion last week in New York. The company closed nearly 20 percent lower on Tuesday.
From Alibaba Group to Tencent Holding, many Chinese technology giants have been going public abroad for nearly 20 years to attract foreign investors.
It is stated that this step to be taken will also threaten Wall Street and may worsen relations in sensitive areas such as technology, where tensions between China and the USA are experienced.
To be noted, Chinese companies have generated approximately $76 billion in revenue from public offerings in the United States over the past ten years.
Japan Updates Its Fiscal 2021 Growth Forecast Downwards
The Japanese government has revised down its economic growth forecast for the current fiscal year.
After the Economic and Fiscal Policy Council meeting, the Cabinet Office announced that the growth expectation announced in January was lowered by 0.3 points.
Accordingly, a 3.7 percent growth in Japan’s gross national product is expected in the 2021 fiscal year, which will end in March 2022.
In the meeting, Prime Minister Suga Yoshihide said GDP would likely surpass pre-pandemic levels this year and hit a record high next fiscal year.
Suga said participants in the meeting pointed out that vaccinations can help speed up the normalization of economic activities and make further economic growth possible. He added that the government would do all it can to get people vaccinated as soon as possible.
The participants also discussed basic guidelines for next year’s draft budget. Suga said he wants to focus on investments to create a green society, promote digital transformation, revitalize local regions, and tackle population decline.
Singapore Prepares To Stop Counting Daily Covid-19 Cases
Singapore, which plans to live a more “normal” life with Covid-19, is trying to draw a roadmap in this regard. The authorities leading the policy of combating the epidemic, in which strict rules are applied, started to plan the period when the virus will become endemic like the flu, and the vaccination rates will increase.
“The bad news is that Covid-19 may never go away. The good news is that it is possible to live normally with it in our midst,” said Singapore’s Trade Minister Gan Kim Yong, Finance Minister Lawrence Wong, and Health Minister Ong Ye Kung, in an op-ed in the Straits Times last week.
“We can turn the pandemic into something much less threatening, like influenza, hand, foot and mouth disease, or chickenpox, and get on with our lives.”
Singapore is on track for two-thirds of its population to have received their first vaccine dose by early July and aims to vaccinate that figure by August 9 fully.
As more people get vaccinated, the way Singapore monitors daily Covid-19 infection numbers will change. Following a path similar to how it tracks influenza infections, Singapore will watch those who fall seriously sick or how many are in intensive care units.
Besides, infected people will be allowed to recover at home. “We will worry less about the health care system being overwhelmed,” they said.
Ministers also said that with tests and vaccines that eliminate the need for quarantine, people could at least travel to countries that have the virus under control.