China Finance – Aisa Net http://aisa-net.com/ Fri, 11 Jun 2021 20:41:33 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 https://aisa-net.com/wp-content/uploads/2021/05/aisa-net-icon-150x150.png China Finance – Aisa Net http://aisa-net.com/ 32 32 China’s Yunnan Province did not order minors to shut down, despite reports https://aisa-net.com/chinas-yunnan-province-did-not-order-minors-to-shut-down-despite-reports/ https://aisa-net.com/chinas-yunnan-province-did-not-order-minors-to-shut-down-despite-reports/#respond Fri, 11 Jun 2021 18:16:18 +0000 https://aisa-net.com/chinas-yunnan-province-did-not-order-minors-to-shut-down-despite-reports/

China’s Yunnan province does not appear to be closing bitcoins minors.

Earlier Friday, CoinDesk reported that China’s Yunnan Province is preparing to shut down crypto mining sites, citing BTC.top and Forkast News, which referred to a screenshot of a document believed to be from the Yunnan Energy Bureau .

However, Zhuoer Jiang, CEO of BTC.top, a China-based mining company, denied that his company said Yunnan banned crypto mining. He also said he could not verify the authenticity of the document in the screenshot.

Related: Hut 8 Mining Underwriters Agree To Buy $ 82 Million In Shares Before Nasdaq Listing

“One of our employees spoke to a reporter from Forkast and the employee said that there is a possibility that Yunnan could shut down mining operations in the province,” Jiang said. “But we didn’t say it would happen for sure, and we have no idea if the Yunnan government will have a regulatory policy on this and how strictly the government will enforce it.”

Several sources told CoinDesk that the official screenshot document is likely to be fake. The incident highlights challenges in communicating information about China’s bitcoin mining as officials ramp up pressure on the industry.

“As far as I know, miners in Yunnan have not received such notice,” said Yushan Zheng, partner of Waterdrip Capital, a crypto investment firm that is involved in mining crypto in China.

The screenshot appears to have circulated among WeChat crypto groups, but no one has been able to identify its exact source, Zheng said.

Related: New York Crypto Mining Bill Dies in Assembly After Passing State Senate

There are at least three notable differences between the Yunnan crackdown document and other similar opinions from Chinese authorities. The stamp on the document is located in the upper third of the text, whereas it is usually found at the bottom of these government documents.

The style and size of the title of the document appear to be different from other official documents. Most government notices are assigned to a particular file number, but there is no such number on the document in the screenshot. Zheng confirmed that the document is likely to be fake due to its unusual title and the location of the stamp.

The Yunnan Energy Bureau, which appears to be the issuer of the document in the screenshot, did not respond to calls and email interview requests until press time.

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Why China needs Australian iron ore for years to come https://aisa-net.com/why-china-needs-australian-iron-ore-for-years-to-come/ https://aisa-net.com/why-china-needs-australian-iron-ore-for-years-to-come/#respond Fri, 11 Jun 2021 02:43:57 +0000 https://aisa-net.com/why-china-needs-australian-iron-ore-for-years-to-come/

China is looking to buy iron ore outside of Australia. But how is it really going to play out? (Source: Getty)

  • Former Treasurer Wayne Swan and Antipodes Partners Portfolio Manager Sunny Bangia will discuss China’s growth and investment opportunities at , 10:00 am AEST. Submit your questions .

A “winter period”.

This is what should happen to the Australian economy “when” China stops or reduces its imports of Australian iron ore, , director of the Center for Australian Studies at East China Normal University.

Despite the frosty relationship between China and Australia that led to trade restrictions imposed on several key Australian exports like lobster, beef and wheat, the iron ore has remained relatively intact.

China continues to buy huge amounts of Australian iron ore, and in the first five months of the year recovered 444.9 million tonnes. In 2020, China bought 81% of all Australian iron ore shipped overseas.

Export brings in about $ 136 billion to the Australian economy per year and is by far Australia’s largest and most valuable export.

But Beijing said it was growing increasingly irritated over its reliance on Australia’s product of US $ 211.91 per tonne – which is more than double the price of a year ago.

Iron ore prices have set and reset all-time highs in recent weeks, hitting a high of US $ 229.50 per tonne, sparking frustration with Chinese officials who said it would severely punish “excessive speculation, price hikes. prices and other violations ”.

China seeks to reduce dependence on Australian iron ore

By volume per month, however, China has imported less iron ore lately: 89.8 million tonnes in May, compared to $ 98.6 million bought in April and $ 102.1 million in March. Australia’s total imports to China in May amounted to US $ 13.6 billion.

China is also speeding up the recycling of scrap metal. Just over a fifth (22%) of its crude steel produced in China is based on recycled scrap – but China’s five-year “Made in China 2025” plan will raise that figure to 30% by 2025.

“For every ton of steel made from scrap, you save 1.6 tons of iron ore,” said the CEO of Scholz Recycling Group. Rafael Suchan told China World time.

“By 2025, if China’s plan to make steel from scrap metal goes according to plan, the country will save 480 million tonnes of iron ore imports each year. By 2030, imports will decline by 660 million tonnes per year.

Additionally, China has sought to source raw materials from Brazil or Africa, although experts have said alternative markets cannot compare to the quality and volume Australia can currently supply.

So all the signs are there that Beijing will stop buying this resource when it can find a solid alternative.

But will it really happen? If so, how soon and what will happen to the Australian economy as a result?

From trust to suspicion: a rupture in progress

With relations so strained, the two countries seek to diversify from each other – China seeks other sources, while Australia seeks other export markets.

“Either way, this is rational behavior,” said Hans Hendrischke, Chinese business professor at the University of Sydney.

“The strong mutual interdependence was only justifiable as long as the two countries were on good terms and there was mutual trust.

“This basis of mutual trust gives way to mutual suspicion that either country might suddenly stop trade.”

Although Hendrischke believes that we are not in an outright trade war, nor in a hard halt to trade, there is a risk of “gradual reduction in volumes and diversification on both sides”.

But even a gradual decline would hit Australia hard in terms of overall export volumes as well as Australian jobs, the professor warned.

“Western Australia would be particularly affected by the loss of hundreds of thousands of mining-related jobs. Australia would lose its international trade surplus and experience a decline in its standard of living.

Australia’s economy has received a big boost thanks to China’s appetite for iron ore, independent economist.

“There are several reasons why the Australian economy has performed relatively well since the 2020 recession.

“One of these important reasons is the trade link with China which has been vital in helping the economy recover.”

“Many years” before China properly diversified

In the short term, China will not buy iron ore elsewhere in the same volume as it buys it in Australia, according to Shane Oliver, chief economist of AMP Capital.

“It is very difficult for China to move away from Australian iron ore without hurting its own economy because there is simply not enough supply in the world,” he said. Yahoo finance. After all, Australia produces over 50% of the world’s iron ore exports.

“If all the iron ore produced in the rest of the world went to China, it would still only cover 80% of its imports – but of course that would leave none for the rest of the world. “

But in the longer term, China’s desire to diversify will be more of a problem – but even then, it’s not clear that there is enough to stop buying the product from Australia altogether. .

Meanwhile, if the change is gradual, Australia will eventually find other markets for its iron ore, as is currently the case with rising copper exports to India, Oliver added.

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UPDATE 1-Foreign currency deposits in China swell to $ 1.01 trillion in May https://aisa-net.com/update-1-foreign-currency-deposits-in-china-swell-to-1-01-trillion-in-may/ https://aisa-net.com/update-1-foreign-currency-deposits-in-china-swell-to-1-01-trillion-in-may/#respond Thu, 10 Jun 2021 08:46:03 +0000 https://aisa-net.com/update-1-foreign-currency-deposits-in-china-swell-to-1-01-trillion-in-may/

(Add details and background)

SHANGHAI, June 10 (Reuters) – China’s foreign currency deposits hit a record high of $ 1.01 trillion in late May, from $ 1 trillion a month earlier, the central bank said Thursday.

Foreign currency deposits have grown steadily since last year, boosted by China’s huge trade surplus and continued inflows of capital into Chinese stocks and bonds. Foreign holdings of Chinese bonds hit a record high last month.

The People’s Bank of China (PBOC) said overseas cash deposits increased 35.7 percent year-on-year and $ 9.4 billion from the previous month.

A mountain of dollars on deposit in China has become so large that banks are struggling to lend change. Traders say this poses a risk to official efforts to control a surging yuan.

The yuan has gained about 12% against the dollar since May 2020, hitting its highest levels in more than three years.

The rapid appreciation prompted policymakers to recently announce a series of measures to curb the recovery.

Many policymakers have warned market participants against betting on unilateral currency moves, and the PBOC has increased the ratio of required reserves to foreign currency deposits for the first time in 14 years, with the aim of tighten foreign currency liquidity.

Earlier on Thursday, the currency regulator said two-way volatility in the yuan’s exchange rate would become normal and called on companies to hedge their currency risks.

(Reporting by Winni Zhou and Andrew Galbraith Editing by Peter Graff and Kim Coghill)


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China’s Qinghai Province ordered all crypto miners shut down https://aisa-net.com/chinas-qinghai-province-ordered-all-crypto-miners-shut-down/ https://aisa-net.com/chinas-qinghai-province-ordered-all-crypto-miners-shut-down/#respond Wed, 09 Jun 2021 14:39:09 +0000 https://aisa-net.com/chinas-qinghai-province-ordered-all-crypto-miners-shut-down/

China’s Qinghai Province announced a new ban on virtual currency mining operations, a government document said on Wednesday.

Qinghai is the latest coal-based crypto mining hub expected to wipe out the industry altogether. The news came following another crackdown on some crypto miners in Xinjiang, and follows Inner Mongolia which previously imposed restrictions on minors.

the document was published by the Department of Industry and Information Technology of Qinghai, which is part of the provincial government.

Related: Chinese Police Arrest 1.1K People on Crypto-Related Money Laundering Charges

The local government cited central government concerns over energy-intensive industries and environmental pollution, as well as the State Council directive to maintain financial stability by cracking down on exploitation and trade. crypto as the two reasons they will phase out all mining activity in the province. .

Chinese bitcoin miners use a mixture of coal and hydroelectric power to power their miners, depending on the season. The use of coal in particular has caught the attention of the government, which is seeking to reduce its carbon footprint.

China’s State Council, one of the country’s highest government agencies, has called on local governments to crack down on crypto mining and trading in May.

The Chinese government is moving in this direction for a certain time. Inner Mongolia implemented new regulations for energy-consuming companies in April, while Sichuan – another mining hub – said it could end a local energy policy that miners had taken advantage of.

Related: Chinese internet services censor keywords linked to Binance, Huobi and OKEx

Earlier this year, when a number of coal-fired power plants closed due to accidents in local mines, the bitcoin hashrate (a measure of the computing power that secures the network) has fallen by more than 16%.

The price of Bitcoin, which has risen nearly $ 4,000 in the past 24 hours as El Salvador recognized cryptocurrency as legal tender, fell slightly on the news.

The translated document can be read in full below:

The Qinghai government will ban local authorities from setting up or authorizing new crypto mining projects. It will also shut down all current crypto mining operations in the province.

The Qinghai government will strictly inspect and punish all projects that operate mining activities under the guise of large data centers or high-performance computing centers. It will ban any company from supplying sites or electricity to crypto mining projects.

The government will conduct follow-up inspections and randomly select companies for inspections. He advises companies to prepare for related documents and other supporting evidence in the event of an inspection.

Local authorities are required to provide further updates on the implementation of these measures to the energy conservation department of the Qinghai provincial government by June 20.

UPDATE (June 9, 2021, 15:15 UTC): Updated with additional information.

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Security data lakes, China vs. Starlink, $ 900 million exit from ExtraHop https://aisa-net.com/security-data-lakes-china-vs-starlink-900-million-exit-from-extrahop/ https://aisa-net.com/security-data-lakes-china-vs-starlink-900-million-exit-from-extrahop/#respond Tue, 08 Jun 2021 22:46:32 +0000 https://aisa-net.com/security-data-lakes-china-vs-starlink-900-million-exit-from-extrahop/

News broke this morning that Bain Capital Private Equity and Crosspoint Capital Partners are buying ExtraHop, a Seattle-based network security startup.

Part of the network detection and response (NDR) market, ExtraHop’s security solutions are aimed at companies that manage cloud and on-premises assets, “something that could be useful as more and more more companies are in this intermediate state, ”Ron reports. Miller and Alex Wilhelm.

Just a year ago, ExtraHop was approaching $ 100 million from ARR and was considering an IPO. So Ron and Alex spoke to CTO and ExtraHop co-founder Jesse Rothstein to find out more about how (and why) the deal came about.

Have a good week and thank you for reading me!

Walter thompson
Editor-in-Chief, TechCrunch
@yourprotagonist

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Use discount code Friday to save 20% on a one or two year subscription.

Xometry makes public its excess production capacity activity

Image credits: photo by prasit (Opens in a new window)/ Getty Images

Xometry, a Maryland-based service that connects companies with manufacturers with excess production capacity around the world, last week filed a Form S-1 with the United States Securities and Exchange Commission announcing its intention to become a public enterprise.

As the global supply chain tightened during the 2020 pandemic, a company that helped find excess manufacturing capacity was likely in high demand.

But growth aside, it’s clear that Xometry is not a modern software company, at least from a revenue quality perspective.

It’s time for security teams to embrace security data lakes

Image of a man jumping from a floating dock into a lake.

Image of a man jumping from a floating dock into a lake.

Image credits: Malorny (Opens in a new window) / Getty Images

The average enterprise security organization spends $ 18 million per year, but is largely ineffective at preventing breaches, IP theft, and data loss. Why?

The fragmented approach we currently use in the Security Operations Center (SOC) is not working. It’s time to replace the security information and event management (SIEM) approach with security data lakes.

Reduced reliance on SIEM is well underway, along with many other changes. SIEM doesn’t just disappear overnight, but its role is rapidly evolving and it has a new partner in SOC: the Security Data Lake.

China’s desire to compete with Starlink for the future of the orbital Internet

Image credits: STR / Chinese News Service (CNS) / AFP (Opens in a new window)/ Getty Images

There has been a surge of companies in recent years hoping to offer high-speed Internet access provided from thousands of low-earth orbit (LEO) satellites, providing coverage of most of the world. surface of the earth.

Along with the accelerated deployment of SpaceX’s Starlink constellation in 2020, China has responded quickly in terms of policy, funding and technology. Although still in the early stages of development, a “Chinese response to Starlink”, SatNet and the associated GuoWang are likely to compete in some markets with Starlink and others while fulfilling a strategic objective from a government perspective.

With considerable support from very high level players, we are likely to see the deployment of a red star (link) over China (and the rest of the world) in the coming years.

This SPAC is betting that a British healthcare company can shake up the American market

Image credits: Nigel sussman (Opens in a new window)

Babylon Health, a UK healthcare technology company, is pursuing a listing in the United States through a Blank Check Company, or SPAC.

While awaiting the Robinhood IPO, The Exchange delved into its fundraising history, its product, its numbers and, preparing for the impact, its projections.

The Hidden Benefits of Adding a CTO to Your Board

A CTO brings a strategic advantage

A CTO brings a strategic advantage

Image credits: Westend61 / Getty Images

Adding a technical leader to the mix creates a real advantage, according to Abby Kearns, CTO at Puppet, according to Abby Kearns, CTO at Puppet.

Beyond their engineering background, CTOs can help founders set realistic deadlines, identify pain points, and bring what Kearns calls “pragmatic empathy” to high pressure situations.

They can also be an effective advocate for founding teams who need help explaining why a launch is delayed or why new engineering hires are badly needed.

“A CTO includes nuts and bolts,” Kearns explains.

6 career options for ex-founders looking for their next adventure

6 options for ex-founders looking for their next business

6 options for ex-founders looking for their next business

Image credits: Marie La Fauci / Getty Images

As someone with “founder” on your resume, you face a greater challenge when trying to get a traditional salaried job.

You’ve already shown that you really want to run a business, not just move up the ranks, which means some employers are less likely to hire you.

So what should you do? Especially if your life partner and / or bank account is exhausted by the volatility of startup income?

Here are six options for former founders planning their next move.

How bottom-up sales helped Expensify pave the way for SaaS

Image credits: Nigel sussman

In the fifth and final part of Expensify’s EC-1, Anna Heim explores how the company has built its business, true to its ways, in an unexpected way.

“You would expect an expense management company to have a great sales department and advertise in all kinds of channels to maximize customer acquisition, writes Anna. But“ Expensify just doesn’t do what it does. you think it should.

“Keeping in mind this company’s propensity to stick to its guts, it’s not really surprising that it came to over $ 100 million in annual recurring revenue and millions of users with a workforce of 130, a few contractors and a virtually non-existent sales team. “

How is such growth possible without a sales team? Word of mouth.




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Exclusive-Apple in talks with CATL and BYD on battery supply for its electric car: sources https://aisa-net.com/exclusive-apple-in-talks-with-catl-and-byd-on-battery-supply-for-its-electric-car-sources/ https://aisa-net.com/exclusive-apple-in-talks-with-catl-and-byd-on-battery-supply-for-its-electric-car-sources/#respond Tue, 08 Jun 2021 06:01:49 +0000 https://aisa-net.com/exclusive-apple-in-talks-with-catl-and-byd-on-battery-supply-for-its-electric-car-sources/

SHANGHAI / HONG KONG (Reuters) – Apple Inc is in talks with China’s CATL and BYD over supplying batteries for its electric vehicle project, four people with knowledge of the matter said.

The talks are subject to change and it is not clear whether any deals with CATL or BYD will be made, said the people who declined to be named as the talks are private.

Apple has made building manufacturing facilities in the United States a condition for potential battery suppliers, two of the sources said.

CATL, which supplies major automakers including Tesla Inc, is reluctant to build a plant in the United States due to political tensions between Washington and Beijing as well as cost concerns, the two said.

It wasn’t immediately clear whether Apple is talking to other battery makers as well.

Apple, which has yet to make a public announcement on its car plans, declined to comment. CATL, the world’s largest auto battery maker, and BYD, the world’s number 4, also declined to comment.

The U.S. firm supports the use of lithium iron phosphate batteries which are cheaper to produce because they use iron instead of the more expensive nickel and cobalt, the four said.

Apple has been working on autonomous driving technology and has targeted 2024 for production of a passenger vehicle, Reuters reported in December.

People familiar with the matter have already said that Apple’s planned electric vehicle may include its own breakthrough battery technology. It wasn’t immediately clear whether the talks with CATL and BYD involved Apple’s technology or designs.

The talks come at a time when the US government is looking to attract more electric vehicle manufacturers. The $ 1.7 trillion infrastructure plan proposed by US President Joe Biden includes a $ 174 billion budget to boost the domestic electric vehicle market with tax credits and subsidies for battery makers, among other incentives.

Many battery makers are ramping up production to meet growing global demand, as automakers accelerate their switch to electric vehicles to comply with stricter emission rules aimed at tackling global warming.

Chinese battery makers are expected to grow at a faster rate than their overseas counterparts thanks to the continued expansion of the world’s largest electric vehicle market, SNE Research said in a June report.

Reuters announced last week that CATL is planning a major new auto battery plant in Shanghai, continuing a rapid pace of expansion that will solidify its lead as the world’s largest supplier. The plant is said to be close to Tesla’s manufacturing operations in China.

(Reporting by Zhang Yan in Shanghai and Julie Zhu in Hong Kong; Editing by Miyoung Kim and Edwina Gibbs)


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Splash Beverage Group (SBEV) secures the distribution of all its brands in China, the world’s largest market for alcoholic beverages https://aisa-net.com/splash-beverage-group-sbev-secures-the-distribution-of-all-its-brands-in-china-the-worlds-largest-market-for-alcoholic-beverages/ https://aisa-net.com/splash-beverage-group-sbev-secures-the-distribution-of-all-its-brands-in-china-the-worlds-largest-market-for-alcoholic-beverages/#respond Mon, 07 Jun 2021 12:00:00 +0000 https://aisa-net.com/splash-beverage-group-sbev-secures-the-distribution-of-all-its-brands-in-china-the-worlds-largest-market-for-alcoholic-beverages/

Copa Di Vino wines and Pupoloco sangria to serve China’s $ 55 billion wine market

Fort Lauderdale, Florida – (Newsfile Corp. – June 7, 2021) – Splash Drinks Group, Inc. (OTCQB: SBEV) (“Splash” or the “Company”), a holding company comprising a portfolio of leading beverage brands, today announced the signing of a distribution agreement with the Chinese company American software capital (“ASC”) was expanded to include its Copa Di Vino and Pulpoloco brands in addition to the former ad distribution of the TapouT Performance and SALT Naturally Flavored Tequila hydration and recovery brands.

ASC is a Chinese manufacturer and distributor of consumer goods with a broad national reach. The company operates a state-of-the-art facility, has strong marketing resources and impactful relationships with chains and outlets throughout Greater China.

China is the world’s largest alcoholic beverage market, according to a report by Mersol & Luo. Foreign alcohol is experiencing significant growth. Sales of imported alcoholic beverages are still concentrated on the coast and large urban areas, but demand in less developed inland regions is on the rise, offering great potential for both established businesses and new entrants.

Copa Di Vino and Pupoloco Sangria will meet the growing demand for wine among a younger generation of Chinese with increasing disposable income. Wine sales in China have been $ 55 billion in 2016.

“As the import and distribution of Splash brands meet the immediate Chinese market demand for Western spirits and soft drinks, and we anticipate a short-term contribution to revenues, we are simultaneously working with ASC to establish local manufacturing and streamline operations to maximize profitability in the region, ”said Robert Nistico, CEO of Splash.

Follow Splash Beverage Group on Twitter: www.twitter.com/SplashBev

To view an improved version of this graphic, please visit:
https://orders.newsfilecorp.com/files/7319/86702_881d768234dc09bc_002full.jpg

To view an improved version of this graphic, please visit:
https://orders.newsfilecorp.com/files/7319/86702_881d768234dc09bc_003full.jpg

About Splash Beverage Group, Inc.

Splash Beverage Group specializes in the manufacture, distribution, sale and marketing of various beverages across multiple channels. SBEV operates in both the non-alcoholic and alcoholic beverage segments which they believe maximize efficiency and dilute risk.

SBEV believes its business model is unique as it ONLY develops / accelerates brands that it perceives as having highly visible pre-existing brand awareness or pure category innovation.

Forward-looking statement

This press release includes “forward-looking statements” within the meaning of US federal securities laws. Words such as “expect”, “estimate”, “project”, “budget”, “plan”, “anticipate”, “intend to”, “plan”, “power”, “power”, “Could”, “should,” “believes”, “predicted”, “potential”, “continue” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results and, therefore, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements and factors that may cause such differences include, without limitation, the inability to reach a definitive agreement regarding the proposed transaction or to complete the transactions contemplated by the non-binding term sheet, matters discovered by the parties. when they complete their respective due diligence investigation of each other. Other factors include the possibility that the proposed transaction will not complete, including due to the lack of required securityholder approvals or the failure of other closing conditions. The foregoing list of factors is not exclusive. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are posted.

Contact information:
Splashbeveragegroup.com
info@splashbeveragegroup.com
954-745-5815

SOURCE: Splash Beverage Group, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/86702




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The G7 tax deal is a game-changing opportunity https://aisa-net.com/the-g7-tax-deal-is-a-game-changing-opportunity/ https://aisa-net.com/the-g7-tax-deal-is-a-game-changing-opportunity/#respond Sun, 06 Jun 2021 17:11:39 +0000 https://aisa-net.com/the-g7-tax-deal-is-a-game-changing-opportunity/

For four decades, global corporate tax rates fell in an international “race to the bottom”, allowing large multinationals to reduce their burden by channeling their profits to low-tax jurisdictions. This weekend’s deal between G7 finance ministers offers a revolutionary opportunity to reverse that process – and ensure that businesses are visibly making a fair contribution to post-pandemic recovery. For it to be successful, the world’s largest economies will need to register more broadly. But it is in their own interest to do so.

The agreement reverses a century of tax practice, where profits are taxed only where companies have a physical presence. Instead, all countries where the world’s largest and most profitable companies sell would have taxing rights on “at least 20 percent of profits exceeding a 10 percent margin.” Finance ministers also pledged to apply an overall minimum tax of at least 15%, country by country.

The deal also represents a renewal of multilateral cooperation and constructive American leadership after the Trump years – though it suits the Biden administration’s efforts to fund its spending plans by raising its corporate tax rate. US companies could otherwise have set up shop in tax havens. If implemented, the deal lifts the threat of US tariffs against European countries providing for unilateral taxes on US tech giants.

Any compromise has imperfections and disappointments. Cross-border reallocation of profits for tax purposes will be limited to the world’s top 100 companies and those making “super” profits. Yet even this limited reach will capture many American tech giants targeted by Europeans. The 10 percent margin will require complex rules to be defined and agreed. One-fifth of profits above this level open to international taxation will be relatively small, although this will be an improvement over the current situation. And what is crucial is the change in principle to allow taxation by countries where companies make sales, and not just where they are based. Others can potentially be built on this foundation in the future.

The overall 15% minimum tax is well below the 21% proposed by the Biden administration in April; campaign groups say it’s too low. But the wording “at least” allows countries to adopt higher rates. Agreement to apply it “country by country” is also essential. This means that companies cannot pay an average minimum rate by channeling some profits to higher tax countries and others through zero or low tax regimes. Instead, if a company paid less than the minimum in a given country, its home country could make up the difference to hit the global floor or whatever that country had legislated.

If enough large economies agreed to do the same, there would be no incentive for companies to do business in low-tax places. Tax havens would have no effective veto power, and the tax-free business model would collapse. An agreement at the G20 level might be enough to achieve this – but the “country by country” provision should remain in the agreement.

These rules make sense for large economies, including the two largest. China might be reluctant to have its own multinationals pay taxes elsewhere. But it’s in your own best interests to receive income from, say, Apple, and to have a stable global tax system. For the United States, too, forgoing some tax revenue from U.S. companies overseas may pave the way for much larger collection at home – reluctant Republicans in Congress are taking note. No one wins from a Wild West tax system where everyone tries to win at the expense of others. The chance to reform this system should not be lost.


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China tech crackdown cools Hong Kong IPO market https://aisa-net.com/china-tech-crackdown-cools-hong-kong-ipo-market/ https://aisa-net.com/china-tech-crackdown-cools-hong-kong-ipo-market/#respond Sat, 05 Jun 2021 21:00:00 +0000 https://aisa-net.com/china-tech-crackdown-cools-hong-kong-ipo-market/

(Bloomberg) – New listings in Hong Kong have fallen to their lowest level since the aftermath of the global financial crisis, as weakening markets and China’s crackdown on its biggest tech companies dampen sentiment.

So far, just seven companies have gone public in the second quarter – on track at least since 2009, according to data compiled by Bloomberg. The subdued second-quarter activity stands in stark contrast to the public rush seen last year or even early 2021.

Day one performance also struggled: May’s initial public offerings – which include warehouse and distribution company JD Logistics Inc. and property manager Central China Management Co. – posted the worst average performance to begin with. in 15 months, according to the data.

The cool-off comes as China imposed a record fine on Alibaba Group Holding Ltd. and ordered 34 of its largest tech companies to rectify any anti-competitive business practices. This is making some companies more cautious about going public, and investors are worried about future actions by regulators. China said the measures are aimed at protecting consumers and maintaining financial stability.

“Investors are no longer comfortable paying exorbitant valuations for certain companies,” said Louis Tse, managing director of Hong Kong-based Wealthy Securities Ltd. “Due to government intervention, some issuers will have to downgrade their multiples.”

The three biggest Chinese technology companies, Tencent Holdings Ltd., Alibaba Group Holding Ltd. and Meituan, have lost more than $ 400 billion in value from highs of just four months ago. The Hong Kong stock market fell into a technical correction earlier this year, pushing valuations even further. The Hang Seng benchmark has been one of the worst in the world since its February high.

As a result, the capital raised on the Hong Kong Stock Exchange this year is only half of that of last year, impacting the city’s position as a premier fundraising center. By comparison, volume on the Nasdaq has already surpassed its 2020 figure, thanks to a boom in business listings in the form of blank checks earlier this year.

Growth trap

Concerns about rising inflation are also making it harder to sell tech companies as investors ditch stocks with high valuations. Beijing’s scrutiny of companies, including tech and education, also forced investors to downgrade their earnings forecasts, according to investors.

“We have seen some volatility and that has reflected in investor appetite, but appropriately priced deals will be done,” said Francesco Lavatelli, Head of Equity Markets for Asia Pacific at JPMorgan Chase & Co ..

Fintech Bairong Inc. fell 16% when it started trading in late March, while healthcare firm Zhaoke Ophthalmology Ltd. fell 15% at the end of April. JD Logistics Inc., which raised $ 3.2 billion, closed only 3% above its offer price when it debuted recently, unlike another unit of JD.com, JD Health International. Inc., which jumped 56% on the first day of last year.

Next blockbuster

The test of whether the Hong Kong IPO market can stage a revival will come from some upcoming listings, which include sales of shares by a dairy company and a manufacturer of invisible tooth aligners.

Big listings include China Youran Dairy Group Ltd., backed by dairy giant Inner Mongolia Yili Industrial Group Co., as well as Betta Pharmaceuticals Co. Angelalign Technology Inc., China’s leading producer of invisible orthodontics, launched an introduction in purse of no less than $ 375 million on Thursday. The latter’s retail slice was already about 674 times oversubscribed on its first day of taking orders, the Hong Kong Economic Journal reported.

Investors are also watching closely the reception of mega-IPOs, including the music streaming arm of Chinese gaming giant NetEase Inc. which filed an IPO in Hong Kong in late May that could raise around $ 1 billion. .

“The market needs at least two or three successful IPOs to rekindle the sentiment. This means you need both subscription rate and day one performance to surprise the market on the rise, ”said Kenny Wen, Everbright Sun Hung Kai strategist. “The heyday of the IPO market is yet to come. “

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Ethereum’s Latest Price: Vechain Cryptocurrency Sees Prices Rise Nearly 2,000% | City & Business | Finance https://aisa-net.com/ethereums-latest-price-vechain-cryptocurrency-sees-prices-rise-nearly-2000-city-business-finance/ https://aisa-net.com/ethereums-latest-price-vechain-cryptocurrency-sees-prices-rise-nearly-2000-city-business-finance/#respond Sat, 05 Jun 2021 08:01:00 +0000 https://aisa-net.com/ethereums-latest-price-vechain-cryptocurrency-sees-prices-rise-nearly-2000-city-business-finance/

The ruling Chinese Communist Party is notoriously suspicious of technologies and organizations beyond its control, hence its recent crackdown on bitcoin and other major cryptocurrencies. However, one cryptocurrency project that enjoys Beijing backing is Vechain (VET), a nationally developed decentralized financial operation that is similar to the Ethereum blockchain network. Chinese President Xi Jinping is desperate to keep a firm hand on the breakthroughs the cryptocurrency revolution is making in the world’s second-largest economy.

A recent report published by Chinese website ChainNews described China’s changing district deputy director Pan Min “repeatedly” praising VeChain’s technology and business development.

All signs are now that Beijing is working with Vechain (VET) to help develop China’s digital version of its national currency, the Yuan.

Speaking to Express.co.uk, George Tung of Cryposrus said: “It is highly likely that China is already working on its digital yuan with Vechain.

“China cultivates its own, and Vechain is by far the largest blockchain company in China.

“They have all the ins.”

It has been touted by many cryptocurrency analysts that Ethereum will likely outperform bitcoin in the next year or so, but with Chinese government backing, VeChain could even outperform Ethereum.

VeChain’s price forecast sentiment is currently bullish, with the price rising 3% today.

However, the cryptocurrency hit its highest price on April 19, 2021, when it traded at its all-time high of $ 0.282922 (£ 0.20) and rose 1,823% in a year. year to date.

READ MORE: Rising inflation raises fears mortgage lending is getting out of hand – will you be affected?

“There is no way they can work with Vechain without a close bond.”

JP Buntinx of Cryptomode ranks Vechain at the top of its 2020 “Ethereum Killers” list.

JP Buntinx added, “Some of the biggest brands in the world are already experimenting with Vechain technology, including Walmart.”

However, the Cryptomode indicates that although there is “competition in the blockchain space, it will not be easy to dethrone Ethereum”.

Express.co.uk does not provide financial advice. The journalists who worked on this article do not own any cryptocurrency.


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