Welcome to your week in Asia.
It will be a week of Chinese milestones. Weeks of preparatory events set the stage for the Chinese Communist Party to mark the 100th anniversary of its founding in 1921 in Shanghai on Thursday. For President Xi Jinping, it will be a key opportunity to highlight the regime’s achievements.
On the same day, China will also mark Hong Kong’s return to rule in 1997. The day before, the city will complete its first year under a controversial Beijing-imposed national security law. Also on Wednesday, China will launch a national carbon offsets trading platform through the new Shanghai Environment and Energy Exchange, according to state media.
Elsewhere in the region, Taiwan will kick off its annual shareholder meeting season under special COVID rules, while Thailand will open the island of Phuket to vaccinated foreign tourists without a quarantine requirement. Vietnam and Japan will release economic indicators showing how business has been affected by the upsurge in virus cases in both countries.
The rush for the Hong Kong IPO
Companies are rushing to finalize initial public offerings by June 30 to avoid having to update financial results in their sales documents. Morimatsu International, a unit of Japanese pressure equipment maker Morimatsu Industry, and Yuexiu Services Group, the property management arm of a Chinese real estate developer, will debut on the Hong Kong Stock Exchange on Monday.
Two days later, Chinese bubble tea chain Nayuki and Hutchmed (China), backed by conglomerate CK Hutchison Holdings, will begin trading after heavily subscribed offers.
The Japanese investor marathon
More than 600 Japanese companies will hold annual meetings of shareholders on Tuesday, including Takeda Pharmaceutical, Nintendo and Sharp. Although Japan lifted its COVID-19 state of emergency last week in major cities like Tokyo and Osaka, many companies are calling on shareholders to join online sessions to limit the spread of the virus.
Israeli Minister introduces United Arab Emirates Embassy
Newly-installed Foreign Minister Yair Lapid is expected to be the first member of the Israeli cabinet to pay an official visit to the United Arab Emirates, dedicating the new embassy his country opened in January in Abu Dhabi as well as a consulate in Dubai .
“Relations between Israel and the Emirates are an important part of Israel’s foreign policy and we will work to deepen them,” tweeted Israeli Prime Minister Naftali Bennett, who has partnered with Lapid to topple the longtime leader. Benjamin Netanyahu. âGood luck, Yair! “
Vietnam’s economic recovery
The Southeast Asian nation is set to release second quarter gross domestic product figures. While Vietnam is still expected to post one of the highest growth rates in the region, analysts have lowered expectations as the country’s worst COVID wave has forced industrial parks and major cities to lock down, and efforts vaccination progresses slowly. Goldman Sachs, for example, cut its growth forecast for the quarter from a year earlier to 6.9% from 7.2%.
Huawei executive attorneys advocate for HSBC documents
Lawyers for Huawei CFO Meng Wanzhou will attempt to persuade a Vancouver judge to allow them to present as evidence documents obtained in a legal settlement with HSBC Holdings, which previously worked for the Chinese firm of telecommunications equipment.
Lawyers on Friday lost an offer to keep the documents confidential, but still hope to use them to frustrate US efforts to extradite Meng to face bank fraud charges. Meng has been detained at her Vancouver home since her arrest under a U.S. warrant in December 2018.
Wall Street rides Didi
Chinese rideshare operator Didi Chuxing to debut on the New York Stock Exchange after slashing its IPO target to around $ 4 billion due to lack of investor support for the $ 100 billion valuation that he was looking for initially. At the new high of the indicative share price range, the company would be valued at $ 67 billion.
Online grocer Dingdong Maicai, meanwhile, will start trading on the same exchange a day earlier, after raising as much as $ 357 million. Both launches follow a poor start on Friday for rival online grocer Missfresh, which lost a quarter of its market value despite its stock prices at the low end of their marketed range.
Malaysia opens the door to digital banks
The deadline is ending for applicants seeking licenses to open a digital bank in Malaysia to submit applications to the country’s central bank. Up to five bidders are expected to be selected by the end of the year. Telecommunications operator Axiata and local conglomerate Sunway are among those who have indicated their intention to embark on the race.
Chinese crackdown on Hong Kong
Hong Kong marks a year since Beijing imposed a national security law on the city. The law, which bypassed the local legislature, helped effectively muzzle dissent in the former British colony and reshape its political system, schools, media and civil society while pushing some activists and politicians into exile .
More than 100 people have been arrested under the security law, the first of whom, Tong Ying-kit, is currently on trial for involvement in terrorism and secession and faces a possible life sentence if he is. found guilty.
100th anniversary of the CCP
Ahead of the celebration, President Xi Jinping will award the “July 1 Medal” to outstanding party members and deliver a speech in Beijing on Tuesday. In celebration of the capital’s anniversary itself, local media previously reported a rehearsal involving 14,000 people and numerous military helicopters and forward fighter jets, including the J-20 stealth jet.
Theaters across the country will begin showing “1921”, a historic new epic, funded in part by Tencent Holdings’ film unit. Its cast, particularly of young singers and stars, had previously been criticized as implying adequate disrespect for revered revolutionary heroes.
Phuket welcomes some foreign visitors
Thailand will pave the way for vaccinated international tourists to come to the island of Phuket without quarantine. The sandbox program is the first step in the kingdom’s ambitious plan to reopen, which aims to allow incoming visitors to move freely in Thailand by mid-October.
Success in Phuket will help authorities build confidence in their ability to balance public health and tourism, but some are concerned about the risks of further COVID outbreaks. Tourism and related businesses accounted for 20% of Thailand’s gross domestic product during the pre-COVID era.
Taiwanese companies finally meet their shareholders
The island’s annual corporate shareholder meeting season kicks off under special COVID rules after a wave of virus cases forced officials to postpone events to the end of May.
Under the new regulations, companies such as Foxconn’s display subsidiary Innolux and PCB manufacturer Zhen Ding Tech Group will call meetings with up to five participants indoors or 10 outdoors, d ‘other shareholders and directors joining online after Taiwan extended social distancing checks to mid-July.
LG accelerates its billion dollar EV project
LG Electronics and Magna International of Canada will launch a joint venture to manufacture electric motors, inverters and electric drive systems as global automakers accelerate their switch to electric vehicles.
The company, tentatively named LG Magna e-Powertrain, will target the rapidly growing automotive electrification market, possibly including cars from US device maker Apple, with production in the US, China and In other countries.
BOJ reads corporate sentiment
The business climate is expected to register gains in the Bank of Japan’s quarterly Tankan survey, with economists forecasting the headline index to rise to levels not seen since 2018. Japan’s export-oriented manufacturing sector is expected to lead the recovery thanks to strong demand. from China for capital goods and from the United States for cars. There are headwinds, such as rising commodity prices, but the economy is expected to overcome them and continue to grow as COVID vaccinations advance and the national economy reopens.
Japan convenes palm summit
The 9th Pacific Island Leaders Meeting will be held online, with Japanese officials joining the leaders of the 18-member Pacific Islands Forum, even as five of the group’s members seek to part ways after an election disagreement . The summit has been held every three years since 1997 to strengthen ties between Japan and countries in the Pacific, with leaders expected to discuss economic cooperation, disaster response, the environment and other issues.
Tokyo goes to the polls
As the Japanese capital prepares to host the Summer Olympics later in the month despite an ongoing COVID outbreak, voters will go to the polls to choose members of the Tokyo Metropolitan Assembly. The focus will be on whether Governor Yuriko Koike’s first Tokyo party can retain power after their surprise victory in their election debut four years ago.
Koike was hospitalized with exhaustion last week, which could bode ill for her group’s chances of preventing the Liberal Democrats, the ruling national party, from regaining dominance in the assembly ahead of the election general expected later this year.