In today’s briefing:
- Changes to Korea’s IPO Policies in 2023
- China: Potential Rebound in Headline Growth Leaves Many Problems Unsolved
- Geopolitical Outlook for 2023: Sino-Indian Border a Potential Flashpoint
- Pay Attention!
- The Christmas Week That Was in ASEAN@Smartkarma – Bukalapak Standing Firm, 2022 IPOs, and Alfamart
- The Commodity Report #82
Changes to Korea’s IPO Policies in 2023
- On 18 December, the Korean financial regulators made important announcements regarding IPO policies in Korea.
- The major changes include the first day trading levels, longer book building period, and allow preliminary demand survey for institutional investors.
- The higher IPO price range in the first day of trading could provide a speedier price discovery and greater opportunities for volatility trading in the first day of trading.
China: Potential Rebound in Headline Growth Leaves Many Problems Unsolved
- China’s pivot away from its dynamic zero-COVID policy has generated much optimism, but the economy must endure a surge in infections that will strain the public health system.
- The government has not laid the groundwork for an orderly transition away from dynamic zero-covid, and economic activity may be depressed by fearful consumer and business sentiment.
- A pivot towards greater stimulus will help, but a shock this severe will be reversed neither easily nor smoothly. A sharp contraction is likely in the following 2 months.
Geopolitical Outlook for 2023: Sino-Indian Border a Potential Flashpoint
- China’s relationships with its neighbours will be a key determinant of Asia’s geopolitical risk environment moving into 2023.
- Taiwan will remain a hot spot given China’s long-term ambitions of reunification, but Beijing may take a more tempered approach following developments in the region and elsewhere.
- Sino-Indian border disputes are increasingly a flashpoint, with relationships between the two countries in a bad state and both sides taking hawkish stances against the other.
Pay Attention!
- The main difference is that Draghi was unequivocally committed in being dovish and using all the ECB powers to save the Euro.
- Lagarde was relentlessly hawkish in an attempt to show unwavering commitment to slaying the European inflation dragon.
- Therefore, this was the most iconic ECB meeting since the Draghi era.
The Christmas Week That Was in ASEAN@Smartkarma – Bukalapak Standing Firm, 2022 IPOs, and Alfamart
- The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across South East Asia.
- The past week saw insights on Bukalapak (BUKA IJ), the performance of Asian IPOs from 2022, the ongoing Total Access Communication (DTAC TB) and True Corp Pcl (TRUE TB) merger.
- There was also a commentary on the upcoming Ohmyhome IPO in Singapore and an initiation on Thai Property firm Sansiri Public (SIRI TB). We also had credit research on Jababeka.
The Commodity Report #82
- Commodities will be the best-performing asset class once again in 2023, handing investors returns of more than 40%, according to Goldman Sachs.
- The Wall Street bank said that while the first quarter may be “bumpy” due to economic weakness in the US and China, scarcities of raw materials from oil to natural gas and metals will boost prices after that.
- The bank forecasts that Brent crude will climb to $105 a barrel in the final quarter of 2023, up from $82 today.
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