There has been a series of regulatory changes in China since 2019, mainly taking place in new economy sectors, first with gaming, then fintech, and now private education. On July 23, Beijing announced new rules barring for-profit tutoring in core school subjects to ease financial pressure on families. These regulatory measures have had a major impact on the equity market especially for the affected industries, though the short-term macro impact has remained limited.
Rise of the “Nasdaq of the East” - Shanghai’s Star Board
Chinese regulators decided to launch a new Nasdaq-style Shanghai’s Star Board on 13 June 2019. Their vision is to make the Star Board a serious competitor to the Nasdaq - an attractive financing option for dynamic companies while offering investment opportunities. It wants to create a fundraising platform for promising technology firms in key fields such as chip making, artificial intelligence and biotechnology.
Ant Group seeks $200bn valuation in landmark dual IPOs in Shanghai and Hong Kong, not New York
Alibaba-affiliated fintech giant Ant Group has announced its long-awaited public offering with a dual listing on the new Shanghai Stock Exchange’s Star Board (or the Science and Technology Innovation Board, which is being dubbed “China’s Nasdaq”) and also on the Hong Kong Stock Exchange.
How do we invest in a VUCA world?
The current situation in the financial world can best be described as a VUCA world. This term was thought up by the United States, in the 1980s, to describe the situation in the years following the Cold War. VUCA stands for “Volatility, Uncertainty, Complexity and Ambiguity”.
Chinese New Year 2020: the Year of the Rat
One of the brokers we work with in Asia, CLSA, puts out an annual Feng Shui Guide as an alternative look at what’s in store for the new year to help luck flow in your direction. That also includes a forecast for what will happen to financial markets in the year ahead.
What do Santa Claus and gaming companies have in common? Part 2
After having written about Santa Claus and the origins of the Finish gaming industry in our previous blog post, we will now zoom into the Finnish gaming industry a bit more.
Global Challengers: Anta Sports
Anta Sports is a great example of the type of Global Challengers we are looking for. The Anta brand was established in 1991. The company’s strategy is to be a competitive global player in terms of sportswear and apparel. They are already known as ‘China’s Nike’. Thanks to the acquisition of Amer Sports, a Finish sportswear conglomerate having brands such as Wilson, Salomon, Arc'Teryx, PeakPerformance, Atomic, they are now also expanding globally.
Passive investment and gigantism in the tech sector: a dangerous cocktail?
The combination of all-encompassing gigantism in the technology sector and blind buying in passive investment products could, however, turn out to be dangerous if everybody wants to head for the exit.
A Fresh Perspective on the Active vs. Passive Investing Debate
In our work at Econopolis, we spend a lot of time thinking about how to construct the best investment portfolios—and these days, a big part of that conversation centers on the role of active and passive styles of investing, an ongoing (and sometimes quite heated!) debate in the financial industry. This isn’t just an academic conversation: It has the potential to affec ...
A Fresh Perspective on "Buy and Hold" as an Investment Strategy
Contrary To Popular Belief, "Buy And Hold" Isn't A One-Size-Fits-All Investment Strategy. The appeal of buy and hold investing is simplicity. Buy and hold requires little intelligence, skill, or serious effort, and it completely ignores the essential investment concept of managing risk. Buy and hold's allure is as old as eternity - get rich with little or no effort. Just mindl ...