Article: China is growing more worried about how surging commodity prices will affect business profits

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China is growing more worried about how surging commodity prices will affect business profits

Evelyn Cheng, 27 May 2021

BEIJING — The global surge in commodity prices is adding another burden to China’s small businesses, many of which have barely put the coronavirus pandemic behind them.

In a sign of how severe the problem is, Chinese Premier Li Keqiang and other leaders emphasized at a meeting Wednesday they would increase support for privately run businesses — first, in the persistent issue of getting financing, and second, for coping with rising prices of raw materials.

The statement marked the latest central government announcement in the last few weeks on record high commodity prices, as authorities rush to limit the negative impact on the economy. If businesses selling to consumers keep prices steady in order to remain competitive, the rise in commodity prices will cut into profit margins. Continue reading “Article: China is growing more worried about how surging commodity prices will affect business profits”

Article: Hong Kong Arrests Six in $322 Million Money Laundering Case

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Hong Kong Arrests Six in $322 Million Money Laundering Case

Denise Wee and John Cheng, 22 April 2021

Hong Kong authorities arrested six people suspected of money laundering involving HK$2.5 billion ($322 million), in the latest case to hit the Asian financial hub.

Five men and one woman aged 23 to 50 were suspected of laundering money through 59 personal accounts at nine banks in Hong Kong, the Customs and Excise Department said in a briefing Thursday. They were involved in over 2,600 transactions from January 2018 to February 2020, it said, without naming the banks.

Hong Kong has been hit by a number of high-profile money laundering cases this year. The city’s police last month arrested 12 people for running alleged “ramp and dump” stock scams and money laundering after raids on luxury homes and brokerages across the city. Continue reading “Article: Hong Kong Arrests Six in $322 Million Money Laundering Case”

Article: GameStop plans to elect activist investor Cohen as chairman

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GameStop plans to elect activist investor Cohen as chairman

Reuters, 08 April 2021

GameStop Corp, which has been part of a recent Reddit-driven trading frenzy, said on Thursday it intends to elect activist investor Ryan Cohen as chairman, putting him in the driver’s seat as he looks to transform the videogame retailer.

Since Chewy co-founder Cohen joined GameStop’s board in January, he has been pushing towards transformation of the brick-and-mortar retailer into an e-commerce firm that can take on big-box retailers such as Target Corp and technology firms such as Microsoft Corp.

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Article: Why Is It Moving? Looking Into Why SeaChange International’s Stock is Trading Higher Today

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Why Is It Moving? Looking Into Why SeaChange International’s Stock is Trading Higher Today

Erin Clark,  29 March 2021

Hong Kong Is Set to Target First SPAC Listing by End of Year

(Bloomberg) — Hong Kong is expected to have its own blank check company listing framework ready in June for public feedback and targets allowing deals to start by the end of this year, according to people familiar with the matter.The city is looking at tighter rules for sponsors of special purpose acquisition company listings and their buy-out targets than those enforced in the U.S., said the people, who asked not to be named discussing internal deliberations. Continue reading “Article: Why Is It Moving? Looking Into Why SeaChange International’s Stock is Trading Higher Today”

Article: China cracks down on fraud and tries to clean up image with Luckin probe

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China cracks down on fraud and tries to clean up image with Luckin probe

Evelyn Cheng, 25 February 2021

In a period fraught with tensions with the U.S., China is trying to show it’s being serious about tackling fraud. Nasdaq-listed Luckin Coffee said Monday it was cooperating with regulators, following reports of government investigation into the company over recently disclosed financial fraud.

The rare crackdown comes after an update to China’s securities law took effect in March. A new clause said the Chinese government will take legal action against overseas securities issuance and trading activity that hurts domestic investors. Continue reading “Article: China cracks down on fraud and tries to clean up image with Luckin probe”

Article: Why the Reddit trading frenzy and short selling won’t work in China

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Why the Reddit trading frenzy and short selling won’t work in China

Evelyn Cheng, 04 February 2021

The recent short selling frenzy on Wall Street will not likely come to China, where there are many more market restrictions. Short selling refers to a trading strategy that allows investors to bet that the price of a stock or security will fall.

To short a stock, investors borrow shares and sell them, then ideally buy them back at a lower price later, and pocket the profits made. If the share price does not drop, the short seller will try to minimize losses by buying back the stock, which now costs more. Investors in mainland China have a limited ability to short stocks — a sign that the local markets are still immature. Tight regulation and online censorship in China also contribute to different investor behavior versus that of the U.S. Continue reading “Article: Why the Reddit trading frenzy and short selling won’t work in China”