Hong Kong Stocks Lead Losses as China Covid Cases Rise; Mixed Asian markets

JD.com shares fall after company cuts top management pay

shares listed in Hong Kong jd.com traded more than 5% lower in the afternoon after the company confirmed pay cuts for its senior management team.

The Chinese e-commerce giant confirmed that it will reduce the cash salaries of its senior management team by up to 20%, starting in January next year.

The company added that it would pay social security fees for Deppon’s logistics employees and set up a housing fund.

“The employee benefits enhancement plan is currently being pushed forward, with a focus on frontline staff,” the company told CNBC.

– IrisWang

Investing in US-listed Chinese companies is like ‘playing fantasy football,’ says Hayman Capital

Investors must be

Investing in US-listed Chinese companies is tantamount to 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 recent reports by the US Public Company Accounting Oversight Board that it got “good access” to requested information have not yet been confirmed, reiterating the Financial risks facing investors in US-listed Chinese companies.

“They own a share that is entitled to a Cayman Islands subsidiary that does not have voting rights or access to assets in the event of bankruptcy,” he told CNBC’s “Street Signs Asia,” when asked if Chinese shares in the US was “investible”.

Overseas-listed Chinese companies such as Alibaba and JD.com use a variable interest entity structure, in which an offshore entity is established, circumventing Chinese restrictions on foreign investment and preventing investors in U.S. stocks have majority voting rights.

The US-listed company is typically a holding company formed outside of the US and China, and you cannot own shares in the China-based company.

“Investors are really playing fantasy football with Chinese companies because they don’t really own anything,” he said.

—Jihye Lee

Indonesian GoTo shares drop 6% after company reports nine-month losses

Indonesia’s GoTo Group posted a higher nine-month cumulative loss compared to the same period a year earlier, despite quarterly losses narrowing on cost cuts.

Losses between January and September were 20.32 trillion rupees ($1.29 billion), almost double the loss of 11.58 trillion rupees reported a year ago.

Its share price fell 6% on Tuesday morning in Jakarta and marks a 48% decline in share price since its listing in April this year.

The company announced last Friday that it will cut jobs as part of broader cost-cutting plans, which it hopes will be reflected later in 2023, it said.

–Sheila Chiang

Malaysia Kingmaker Party GPS Will Support Perikatan Nasional Not Pakatan Harapan

One of Malaysia’s election leaders, Gabungan Parti Sarawak (GPS), a national political alliance based in Sarawak in east Malaysia, said it was supporting the Perikatan Nasional coalition to form a government and would not work with Pakatan Harapan. by Anwar Ibrahim.

Malaysia’s king has called on major coalitions to submit their prime ministerial candidates by 2 p.m. local time, after Saturday’s inconclusive election.

“We have always been told [sic] that we will not be able to work with DAP here and also with Pakatan,” GPS Secretary General Alexander Nanta Linggi told CNBC’s “Squawk Box Asia.” DAP is a progressive component party of Pakatan.

“In the last few days during the elections, they were attacking us a lot. So it’s quite difficult… to form a government, to be very objective in that sense.”

In exchange for GPS’s support, Linggi said he would like the government to give party members positions in ministries they care about, such as rural development and basic goods.

—Su Lin Tan

CNBC Pro: Amazon is down 40% this year. Is it time to buy? Market professionals give their opinion

Once a darling of Wall Street, Amazon It has lost some of its shine this year. Shares of the e-commerce giant have fallen more than 40%, well below the S&P 500which has decreased by around 15% in the same period.

Is it time for investors to gamble again? Two market professionals squared off Thursday on CNBC’s “Street Signs Asia” to make arguments for and against the stock purchase.

CNBC Pro subscribers can read more here.

—Zavier Ong

Baidu and Kuaishou shares fall ahead of earnings report

Baidu is expected to see a slight drop in revenue in the third quarter of 2022, a median of estimates from a Refinitiv survey showed.

The company is expected to see a 0.05% drop in revenue to 31.904 million yuan ($4.46 billion) for the July-September quarter, after it reported 31.92 billion yuan for the same period a year ago. .

Meanwhile, Tiktok’s rival Kuaishou is expected to see 10.2% growth in third-quarter revenue to 22.58 billion yuan, a separate Refinitiv survey indicated, which would be the slowest annual growth pace since the company began reporting earnings.

shares listed in Hong Kong kuaishou fell 4.1% ahead of earnings, while Baidu shares fell 0.44% in the morning session.

-Jihye Lee

CNBC Pro: Morgan Stanley’s Wilson says inflation will slow but warns of a ‘new era’ ahead

Watch the full CNBC interview with Morgan Stanley's Mike Wilson

Morgan Stanley’s chief US equity strategist Mike Wilson said he expects a “fairly steep decline in inflation” and predicts when it might happen.

But he said there are two areas that are exceptions, where inflation could be “stickier.”

CNBC Pro subscribers can read more here.

—Weizhen Tan

Oil prices stall after touching lowest levels since January

Oil prices were little changed in Asia morning after hitting their lowest levels since January on Monday.

US crude it was slightly above $80.08 a barrel after touching $75.08 in the Monday session.

Brent Crude it gained slightly to $87.52 a barrel. She reached as high as $82.31 in the previous session.

Oil futures tumbled briefly on Monday after the Wall Street Journal reported that OPEC+ was considering increasing supply by 500,000 barrels per day. Saudi Arabia later disputed that report.

—Abigail of

Singapore authorities explain why FTX was not on their watch list

The Monetary Authority of Singapore (MAS) said that beleaguered cryptocurrency exchange FTX was not on its investor watch list because it was not “actively soliciting users in Singapore,” in contrast to rival exchange Binance.

The MAS said that there is a “clear distinction” between FTX and Binance in terms of targeting local users, according to a statement published Monday afternoon.

“Binance did, in fact, go to the extent of offering listings in Singapore dollars and accepting Singapore-specific payment modes such as PayNow and PayLah,” he said in the statement, adding that he had received numerous complaints about Binance between January and August of this year. last year.

The MAS reiterated the risks investors face when trading digital assets.

“The biggest lesson from the FTX debacle is that trading any cryptocurrency, on any platform, is dangerous,” he said, adding that even Singapore-licensed cryptocurrency exchanges would be regulated solely to address money laundering risks. and not to provide protection. to investors

“As MAS has repeatedly stated, there is no protection for clients who trade cryptocurrencies. They can lose all their money,” he said.

jihye lee

Stocks fall Monday to start a short holiday week

Stocks fell on Monday in a volatile trading session to kick off the short holiday week.

The S&P 500 lost 0.39% to 3,949.94 and the Nasdaq Composite fell 1.09% to close the day at 11,024.51. The Dow Jones Industrial Average fell 45.41 points, or 0.13%, to 33,700.28, though the index’s losses were offset by a jump in Disney shares, which rose more than 6%.

Disney jumped after the company announced that former CEO Bob Iger would replace Bob Chapek.

—Carmen Reinicke

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