Investing in US-listed Chinese companies is like ‘playing fantasy football,’ says Hayman Capital
Investing in US-listed Chinese companies is the equivalent of playing “fantasy football” as US regulators continue their audits of the companies, according to an asset management firm.
Kyle Bass, founder and CIO of Hayman Capital Management, said the latest report by the US Public Company Accounting Oversight Board had “good access” to the requested information yet to be confirmed, and reiterated the financial risk to investors of listed Chinese companies. The United States faces. .
“They own a share that has a claim in a Cayman Islands subsidiary with no voting rights, and no access to assets in the event of a bankruptcy,” he told CNBC’s “Street Signs Asia,” when asked if Chinese shares in the US. they were “uninvestable.”
Chinese companies listed overseas, such as Alibaba and JD.com, use a variable entity structure, in which an offshore entity is set up, bypassing Chinese restrictions on foreign investment and preventing investors in US stock from having majority voting rights.
The US-listed company is often a holding company formed outside the US and China, and may not own shares in the China-based company.
“The investors are really playing fantasy football with the Chinese companies because they don’t actually own anything,” he said.
— Jihye Lee
Shares in Indonesia’s GoTo fell 6% after the company reported a nine-month loss
Indonesia’s GoTo Group posted a higher nine-month cumulative loss compared to the same period a year ago, though quarterly losses narrowed with cost cuts.
Losses between January and September were 20.32 trillion rupiah ($1.29 billion), almost double the 11.58 trillion rupiah loss reported a year ago.
Its share price fell 6% on Tuesday morning in Jakarta, marking a 48% decrease in share price since its listing in April this year.
The company announced last Friday the job cuts as part of broader plans to cut costs, which it expects to be reflected later in 2023, it said.
– Sheila Chiang
Malaysian kingmaker GPS party will support Perikatan Nasional, not Pakatan Harapan
One of the leaders of the Malaysian election, Gabungan Parti Sarawak (GPS), a national political alliance based in Sarawak in eastern Malaysia, said it would support the Perikatan Nasional coalition to form the government and would not work with Pakatan Harapan Anwar Ibrahim is there.
Malaysia’s king has asked coalition leaders to submit their prime ministerial candidates by 2pm local time, after Saturday’s election was inconclusive.
“We have always said [sic] that we will not be able to work with DAP here and also Pakatan,” GPS Secretary General Alexander Nanta Linggi told CNBC’s “Squawk Box Asia.” DAP is part of the progressive component of Pakatan.
“In the last days during the election, they were attacking us a lot. Therefore, it is rather difficult … to form the government, they must be very objective in this sense.”
In return for the GPS’s support, Linggi said he would like the government to give party members positions in ministries that are important to them, such as rural development and commodities.
— Su-Lin Tan
CNBC Pro: Amazon is down 40% this year – is it time to buy? Market professionals take them
Once a Wall Street darling, Amazon has lost some of its luster this year. The e-commerce giant’s stock fell more than 40%, well underperforming S&P 500which declined approximately 15% in the same period.
Is it time for investors to get the deck back in? Two market professionals faced off on CNBC’s “Street Signs Asia” on Thursday to make a case for and against buying the stock.
CNBC Pro subscribers can read more here.
— Zavier Ong
Baidu, Kuaishou shares fell ahead of earnings report
Baidu expects to see a slight drop in revenue in the third quarter of 2022, a median estimate from a Refinitiv survey showed.
The company is expected to see a 0.05% drop in revenue to 31.904 billion yuan ($4.46 billion) for July to September, after it reported 31.92 billion yuan for the same period a year ago.
Meanwhile, Tiktok rival Kuaishou is expected to see a 10.2% growth in revenue for the third quarter to 22.58 billion yuan, a separate Refinitiv poll indicated – which would be the slowest annual growth rate since the company began reporting earnings.
Hong Kong listed shares Kuaishou fell 4.1% ahead of earnings, while Baidu shares were down 0.44% in the morning session.
– Jihye Lee
CNBC Pro: Morgan Stanley’s Wilson says inflation is slipping, but warns of a ‘new era’ ahead
Mike Wilson, Morgan Stanley’s Chief U.S. Equity Strategist, said he expects a “pretty big decline in inflation,” and predicted when that might happen.
But he said that there are two areas of exception, where inflation could be “stickier.”
CNBC Pro subscribers can read more here.
– Weizhen Tan
Oil prices flat after hitting lowest level since January
Oil prices were little changed in the Asian morning after reaching their lowest levels since January on Monday.
US gross was slightly higher at $80.08 per barrel after touching $75.08 in the Monday session.
Brent crude came a little to $ 87.52 per barrel. It hit $82.31 in the previous session.
Oil futures briefly dipped on Monday after the Wall Street Journal reported OPEC+ was considering increasing supply by 500,000 barrels per day. Later, Saudi Arabia disputed this report.
— Abigail Ng
Singapore authorities explain why FTX was not on its alert list
The Monetary Authority of Singapore (MAS) said that cryptocurrency exchange FTX was not on its investor alert list because it was not “actively soliciting users in Singapore,” unlike rival exchange Binance.
The MAS said there is a “clear distinction” between FTX and Binance in terms of targeting local users, according to a statement released Monday afternoon.
“Binance has in fact gone to the extent of offering listings in Singapore dollars and accepting Singapore-specific payment methods such as PayNow and PayLah,” he said in the statement, adding that he had received many complaints about Binance between January and August last year. a.
The MAS continued to reiterate the risks investors face when trading digital assets.
“The most important lesson from the FTX debacle is that dealing in any cryptocurrency, on any platform, is dangerous,” he said, adding that even Singapore-licensed cryptocurrency exchanges should be regulated only to address money laundering risks, and they do not provide protection. to investors.
“As MAS has repeatedly said, there is no protection for customers who deal in cryptocurrency. They can lose all their money,” he said.
– Jihye Lee
Stocks fell Monday to start a short holiday week
Stocks slipped Monday in a volatile trading session to start the short holiday week.
The S&P 500 shed 0.39% to 3,949.94 and the Nasdaq Composite fell 1.09% to end the day at 11,024.51. The Dow Jones Industrial Average fell 45.41 points, or 0.13%, to 33,700.28, although losses on the index were reduced by a jump of. Disney shares, which rose more than 6%.
Disney jumped after the company announced that former CEO Bob Iger would replace Bob Chapek.
— Carmen Reinicke