Finance

20 major companies to open or expand in Hong Kong this week: finance chief

Published

1 month ago

March 17, 2024

20 major companies to open or expand in Hong Kong this week: finance chief

“These key companies will help attract upstream, midstream and downstream companies in related sectors to cluster in Hong Kong, promoting the vibrant development of the entire innovation and technology ecosystem,” Chan said.

Paul Chan, the financial secretary, has heralded the creation of 13,000 new jobs and HK$40 billion in investment from firms that have moved or plan to expand operations in the city. Photo: Edmond So

The news came as Chan promised Hong Kong would continue to develop as an international innovation and technology centre, on top of being a multinational supply chain management giant and trade finance hub.

“While traditional markets in Europe and the United States remain important for Hong Kong’s exports of goods, their share has significantly decreased,” he wrote.

Chan said the proportion of exports to the United States fell from 18.6 per cent of the total in 2003 to 6.5 per cent last year and exports to the European Union went down to 6.6 per cent from 10.5 per cent over the same period.

But exports to Asean countries over the time frame went up from 6.1 per cent to 7.9 per cent, which made the bloc Hong Kong’s second-largest export market after mainland China. The proportion of exports destined for the Middle East went up to 3.3 per cent.

Chan said geopolitical developments, global manufacturing adjustments, supply chain restructurings, and the emergence of nearby ports with excellent facilities had reshaped production and export patterns of businesses and affected Hong Kong’s export performance.

Hong Kong plans e-commerce festival ‘to boost city’s brands in mainland’

He explained that large manufacturers had adjusted their supply chains, but many medium-sized ones had yet to do so.

Chan added environmental, social and corporate governance, as well as high interest rates, had led to difficulties in trade finance, which had affected some businesses.

“Hong Kong has a solid foundation in trade and various related professional services, providing favourable conditions to capture the opportunities arising from these changes,” he said.

“The key lies in assisting companies in strengthening supply chain and value chain management, and creating higher value for their cross-border businesses through a focus on more efficient commercial and professional services.”

He said the city’s goal, laid out in February’s budget, was to establish itself as a one-stop shop able to offer services that included supply chain management, trade financing, consulting, talent development, and corporate training.

Chan added the city wanted to tap into the estimated 50,000-plus medium-sized manufacturers in the Greater Bay Area and the Yangtze River Delta, many of which would need to engage with overseas businesses as they expanded internationally.

Hong Kong finance chief says Beijing’s growth target ‘not easy, but achievable’

The Greater Bay Area is Beijing’s plan to link Hong Kong, Macau and nine mainland cities to create an economic and business powerhouse.

Chan said Hong Kong’s advanced financial infrastructure could provide companies with a variety of funding options and highlighted that more than 70 of the world’s top 100 banks had operations in the city.

“Mainland enterprises settling in Hong Kong will have access to more efficient and lower-cost trade financing services,” he added.

Chan said the city would launch the first phase of the mBridge this year, which will allow cross-border transactions using central bank digital currencies and boost payment speed as well as reduce costs.

The multi-central bank digital currency platform is a cross-border payment and foreign exchange transaction scheme being developed by the Hong Kong Monetary Authority in collaboration with the central banks of the mainland, Thailand and the United Arab Emirates.

Gary Ng Cheuk-yan, a senior economist at corporate and investment bank Natixis, agreed Hong Kong had to adapt to new demands because of a “global supply chain reshuffle”.

“The city will not only need to connect mainland and Hong Kong firms to new markets, but will also have to attract trade and capital flows that could have bypassed the city,” he said.

“The core advantages of Hong Kong remain in free capital flows and low taxes, meaning it is easy for firms to manage trade and investment here.”

But Ng added the city should be prepared for geopolitical problems and stiff competition from other jurisdictions such as Singapore, which held a natural advantage in the Asean bloc of countries as a fellow member.

“Hong Kong will have a role to play, but it will not be as easy as in the past,” he said.

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Finance

Saudi Arabia's Vision 2030 projects to be adjusted as needed, finance minister says – Times of India

Published

6 hours ago

April 28, 2024

Press Room

RIYADH/DUBAI: Saudi Arabia, the world’s top oil exporter, will adjust its Vision 2030 plan to transform its economy as needed, scaling back some projects and accelerating others, its finance minister said on Sunday.
Speaking at the World Economic Forum’s special meeting on Global Collaboration, Growth and Energy for Development in Riyadh, Mohammed Al Jadaan said the kingdom’s focus is on ensuring the quality of future economic growth, and recognises that the challenges it faces require flexibility.
“There are challenges… we don’t have ego, we will change course, we will adjust, we will extend some of the projects, we will downscale some of the projects, we will accelerate some of the projects,” Jadaan said.
Saudi Arabia is accelerating efforts to diversify its economy away from oil under a plan known as Vision 2030. It aims to develop sectors such as tourism and industry, expand the private sector and create jobs.
Non-oil activities vastly outperformed oil sector expansion last year growing by 4.4%, while the overall economy shrank by 0.8 per cent on the back of cuts to oil production and lower prices.
Saudi Arabia is projected to grow 2.6 per cent this year, a downward revision from 4 per cent forecast in October, the IMF said in its latest regional outlook report on the back of continued output cuts.
In the medium term, non-oil growth is expected to come in over 5 per cent a year, Jadaan said in February, although the kingdom is likely to continue to rely on hydrocarbon revenue to drive investments into expanding non-oil activities.
On Sunday, Jadaan re-emphasised the role of an expanded private sector in delivering Vision 2030.
“Vision 2030 is about empowering the private sector. The government role is to be out of business – the government role is to make policies to enable the private sector but not to actually do the business.” The Arab World’s largest economy needs oil at $96.2 to balance its 2024 budget, the IMF forecast.

Finance

Bajaj Finance vs Jio Financial: Which stock should you buy after Q4 results?

Published

13 hours ago

April 28, 2024

Press Room

Bajaj Finance vs Jio Financial: Which stock should you buy after Q4 results?

Bajaj Finance reported a decent double-digit rise in profit and interest income year-on-year. Jio Financial, on the other hand, reported a single-digit sequential rise in profit and interest income.

Jio Financial debuted on bourses in August last year, so its Q4 numbers were not comparable year-on-year.

Bajaj Finance reported its March quarter earnings on Thursday, April 25. Its share price plunged 7.73 per cent to ₹6,729.85 the following day.

Also Read: Why Bajaj Finance shares have tanked 8% despite double-digit YoY growth in PAT, NII in Q4?

Jio Financial reported its Q4 earnings on Friday, April 19. In the subsequent sessions on April 22 and 23, the stock rose 3.54 per cent and 1.27 per cent. However, it witnessed profit booking thereafter and closed in the red in the next three days. Still, for the week, Jio Financial share price climbed over 3 per cent.

Also Read: Jio Financial Services stock gains by over 73% in 6 months; what’s driving the rally?

Q4 result: Key numbers of Jio Financial and Bajaj Finance

Jio Financial Services reported a 6 per cent quarter-on-quarter (QoQ) jump in Q4 consolidated net profit to ₹310.6 crore. The revenue from operations increased 1 per cent QoQ to ₹418.1 crore from ₹413.6 crore in Q3FY24.

Its net interest income (NII) rose 4.5 per cent QoQ from ₹269 crore in Q3FY24 to ₹281 crore in Q4FY24.

Pre-provisioning operating profit for the quarter under review inched up to ₹317 crore against ₹315 crore QoQ.

Also Read: Jio Financial Services Q4 results: Net profit jumps 6% QoQ to ₹310.6 crore, net interest income at ₹280.7 crore

Bajaj Finance reported a 21 per cent year-on-year (YoY) rise in consolidated net profit to ₹3,825 crore in Q4FY24.

Its net interest income (NII) for Q4FY24 saw a 28 per cent YoY rise to ₹8,013 crore against ₹6,254 crore in Q4 of FY23.

However, the lender’s net interest margin (NIM) shrunk 21 basis points (bps) in Q4 over Q3.

Also Read: Bajaj Finance Q4 hit by rural loan losses, RBI restrictions

Which stock should you buy?

Jio Financial and Bajaj Finance have their own strengths and weaknesses. While Jio Financial has strong promoter backing, Bajaj Finance has an impressive performance history.

Jio Financial has aggressive growth plans. Recently, the company signed an agreement with BlackRock Inc and BlackRock Advisors Singapore Pte Ltd to form a 50/50 joint venture for setting up wealth management and broking businesses in India.

Experts find both stocks attractive for the long term and suggest one should pick between them according to their risk appetite.

Amit Goel, Co-Founder and Chief Global Strategist at Pace 360, prefers Jio Financial to Bajaj Finance, considering its strong growth potential.

“Choosing between Bajaj Finance and Jio Financial depends on an investor’s risk appetite and investment goal. Jio Financial, backed by Reliance Industries, is a rising star with ambitious plans to dominate the Indian financial landscape. Jio Financial presents a riskier yet potentially faster growth opportunity. We would recommend Jio Financial Services between these two,” said Goel.

Jignesh Shial, the director of research and the head of the BFSI sector at InCred Capital underscored that Jio Financial Services is at an initial stage, and it is early to predict about the stock.

“Jio Financial enjoys a strong brand name and promoter backing though there is intense competition in all segments,” Shial pointed out.

Bajaj Finance is Shial’s preferred pick given the resilient growth metrics, management track record of dealing with roadblocks and consistency in performance.

“We have an add rating on Bajaj Finance with a target price of ₹9,000 as we continue to bet on the NBFC’s aggressive customer acquisition and flawless diversity into new business,” said Shial.

Also Read: TCS vs HCL Tech vs Wipro vs Infosys: Which stock to buy after Q4 results 2024?

Some technical analysts point out that technical charts also favour Bajaj Finance at this juncture.

Riyank Arora, a technical analyst at Mehta Equities, pointed out that Jio Finance is trading in uncharted territory and near its all-time highs. A pullback towards the ₹300-310 zone should offer an excellent long-term buying opportunity for the stock.

However, the technical indicators and chart structure of Bajaj Finance show more stability, and any move towards the ₹6,000 to ₹6,200 zone should be an excellent long-term buy for the stock, Arora observed.

“At current levels, if we compare the technical chart structure of both stocks, then on any 8-10 per cent downside from the current levels, one can look to accumulate Bajaj Finance with a long-term vision for targets of ₹10,000 and above,” said Arora.

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Published: 28 Apr 2024, 10:00 AM IST

Finance

Ukraine's government will be able to finance all social expenditures this year – PM Shmyhal

Published

21 hours ago

April 27, 2024

Press Room

All social expenditures in Ukraine will be fully financed this year thanks to financial support from partners.

Ukrainian Prime Minister Denys Shmyhal stated this on Ukrainian television, Ukrinform reports.

“We are sure that this year and, to be honest, next year as well we will definitely finance all social payments. Everything that the state has to fulfill will be fulfilled on time and in full,” Shmyhal said.

In particular, $7.5 billion of direct budget funding from the U.S. was provided to cover such expenses. Shmyhal also recalled that Ukraine would receive EUR 16 billion from the European Union this year. In addition, Ukraine has a support program with the International Monetary Fund.

Read also: European Commission endorses Ukraine Plan, pawing way for payments from EUR 50B fund

“All of these resources are the anchor of funding for the Ukrainian budget,” Shmyhal said.

This year Ukraine has already received about $12 billion in external financing to cover the budget deficit.

Photo: Denys Smyhal / Telegram