In today’s briefing:
- Korea Eliminates Foreign Investor Registration Requirement: Impact on the Korean Stock Market
- The Rise of Private Debt: Seizing Opportunities in a Dynamic Investment Landscape
- CX Daily: U.S. Tensions Could Sap Chinese EV-Battery Makers’ Global Ambitions
- Macro Regime Update June – Falling Inflation in the Limelight with Wobbly Liquidity
Korea Eliminates Foreign Investor Registration Requirement: Impact on the Korean Stock Market
- On 5 June, FSC announced that effective 14 December 2023, it will no longer require foreigners to register in advance with the FSC before investing in listed stocks and bonds.
- The elimination of the foreign investor registration requirement will help to reduce the “Korea Discount” which clearly exists in the Korean stock market.
- It is uncertain how much foreign capital that could flow into Korea from this change in this regulation. The bigger picture is the eventual inclusion in MSCI Developed status.
The Rise of Private Debt: Seizing Opportunities in a Dynamic Investment Landscape
- Private debt is a compelling alternative investment asset with higher yields, income stability, and portfolio diversification compared to traditional investments.
- It has gained popularity due to low interest rates (at least until recently), the demand for income-based returns, and the diversification it offers to investor portfolios.
- Private debt carries risks such as credit risk, interest rate risk, liquidity risk, and other risks. ESG integration is also becoming important in private debt investment decisions.
CX Daily: U.S. Tensions Could Sap Chinese EV-Battery Makers’ Global Ambitions
- Batteries /In Depth: U.S. tensions could sap Chinese EV-battery makers’ global ambitions
- China-U.S. /: Senior China, U.S. officials meet in Beijing to discuss mending frayed relations
- Funds /: Registrations for private fund managers nosedive after new rules take effect
Macro Regime Update June – Falling Inflation in the Limelight with Wobbly Liquidity
- Falling inflation is back in the limelight due to a range of soft forward-looking indicators, while liquidity “wobbles along” and remains above levels seen during the autumn of 2022.
- In USDs, it is now almost a certainty that liquidity will shrink after the debt deal has been signed.
- EUR liquidity will shrink a lot faster than USD liquidity both from a nominal and a relative perspective.
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